Question 1

Suppose a group of consumers spends 30% of its disposable income on food, 20% on clothing, and 50% on rent. If over the course of a year the price of food rose 10%, the price of clothing dropped 5%, and rent rose 15%, what was the average price increase experienced by these consumers?

Accepted Answer

The answer of Suppose a group of consumers spends 30%...

Question 2

One year ago, Ming allocated the funds in her portfolio among five securities in the proportions listed below. The rate of (total) return on each security for the year is given in the third column of the table.

Calculate the rate of return for the entire portfolio.

Accepted Answer

The answer of One year ago, Ming allocated the funds...

Question 3

Anthony began the year with $96,400 already invested in his Snow 'n Ice retail store. He withdrew $14,200 on March 1 and another $21,800 on April 1. On August 1, he invested $23,700, and on November 1 he contributed another $19,300. What was his average cumulative investment during the year? (Assume that each month has the same length.)

Accepted Answer

The answer of Anthony began the year with $96,400 already...

Question 4

Lauren's gross pay for July was $3188.35 on net sales totalling $88,630. If her base salary is $1,000 per month, what is her rate of commission on sales exceeding her monthly quota of $40,000?

Accepted Answer

The answer of Lauren's gross pay for July was $3188.35...

Question 5

Manfred is considering job offers of the same type of sales position from two retailers with similar product lines. Supreme Audio & Video is offering a base salary of $2,000 per month plus a 4% commission rate on sales. Buy-Right Electronics will pay him a base salary of $1,500 per month plus commission rates of 3% on the first $25,000 of sales and 6% on additional sales in a month. Based on past experience in sales positions, Manfred is confident he can attain average monthly sales of $55,000. At this level of sales, what would be his average gross earnings per month from each retailer?

Accepted Answer

The answer of Manfred is considering job offers of the...

Question 6

One of the methods permitted by Generally Accepted Accounting Principles for reporting the value of a firm's inventory is weighted-average inventory pricing. The Boswell Corporation began its fiscal year with an inventory of 156 units valued at $10.55 per unit. During the year it made the purchases listed in the following table.
At the end of the year, 239 units remained in inventory. Determine: a) The weighted-average cost of the units purchased during the year. b) The weighted-average cost of the beginning inventory and all units purchased during the year. c) The value of the ending inventory based on the weighted-average cost calculated in b.

Accepted Answer

The answer of One of the methods permitted by Generally...

Question 7

Alihan's transcript shows the following academic record for four semesters of part-time college studies. Calculate his cumulative GPA at the end of his fourth semester.

Accepted Answer

The answer of Alihan's transcript shows the following academic record...

Question 8

An investor accumulated 1800 shares of Microtel Corporation over a period of several months. She bought 1,000 shares at $15.63, 500 shares at $19.00, and 300 shares at $21.75. What was her average cost per share? (Note: Investors who purchase shares in the same company at more than one price must eventually do this calculation. Tax rules require that the capital gain or loss on the sale of any of the shares be calculated using the weighted-average price paid for all of the shares rather than the particular price paid for the shares actually sold.)

Accepted Answer

The answer of An investor accumulated 1800 shares of Microtel...

Question 9

Daniella's gross monthly earnings are based on commission rates of 4% of the first $40,000 of sales, 5% of the next $50,000, and 6% of all additional sales for the month. What was her sales total for a month in which she earns $5,350?

Accepted Answer

The answer of Daniella's gross monthly earnings are based on...

Question 10

An account receivable is an outstanding debt owed to a business by a customer. The "age" of an account receivable is the length of time that it has been outstanding. At the end of October, a firm has $12,570 in receivables that are 30 days "old," $6,850 that are 60 days "old," and $1,325 that are 90 days "old." What is the average "age" of its accounts receivable at the end of October?

Accepted Answer

The answer of An account receivable is an outstanding debt...

Question 11

Tom sells mutual funds on a graduated commission structure. He receives 3.3% on the first $50,000 of sales in a month, 4.4% on the next $50,000, and 5.5% on all further sales. What are his gross earnings for a month in which he sells $140,000 worth of mutual funds?

Accepted Answer

The answer of Tom sells mutual funds on a graduated...

Question 12

Istvan earns an annual salary of $61,000 as an executive with a provincial utility. He is paid biweekly. During a strike, he worked 33 hours more than the regular 75 hours for a two-week pay period. What was his gross pay for that period if the company agreed to pay 1.5 times his equivalent hourly rate for overtime? (Assume that a year has exactly 52 weeks.)

Accepted Answer

The answer of Istvan earns an annual salary of $61,000...

Question 13

In what circumstance should you calculate a weighted average instead of a simple average?

Accepted Answer

The answer of In what circumstance should you calculate a...

Question 14

The balance on Nucorp's revolving loan began the month at $35,000. On the eighth of the month another $10,000 was borrowed. Nucorp was able to repay $20,000 on the 25^th of the 31-day month. What was the average balance on the loan during the month? (Use each day's closing balance as the loan balance for the day.)

Accepted Answer

The answer of The balance on Nucorp's revolving loan began...

Question 15

How must you allocate your money among a number of investments so that your portfolio's overall rate of return will be the same as the simple average of the rates of return on individual investments?

Accepted Answer

The answer of How must you allocate your money among...

Question 16

A hockey goalie's "goals against average" (GAA) is the average number of goals scored against him per (complete) game. In his first 20 games in goal, O. U. Sieve had one shutout, two 1-goal games, three 2-goal games, four 3-goal games, seven 4-goal games, two 6-goal games, and one 10-goal disaster. Calculate his GAA.

Accepted Answer

The answer of A hockey goalie's "goals against average" (GAA)...

Question 17

Marion receives a monthly base salary of $1,000. On the first $10,000 of sales above her monthly quota of $20,000, she is paid a commission of 8%. On any additional sales, the commission rate is 10%. What were her gross earnings for the month of August, in which she had sales amounting to $38,670?

Accepted Answer

The answer of Marion receives a monthly base salary of...

Question 18

Karen works in a retail computer store. She receives a weekly base salary of $300 plus a commission of 3% of sales exceeding her quota of $20,000 per week. What were her sales for a week in which she earned $630.38?

Accepted Answer

The answer of Karen works in a retail computer store....

Question 19

Sonja is paid $42.50 per hour as a veterinarian. She is paid 1½ times the regular rate for all time exceeding 7½ hours in a day or 37½ hours per week. Work on a statutory holiday is paid at double time. What were her gross earnings for a week in which she worked 6, 0, 3, 7½, 9, 7½, and 8 hours on Saturday to Friday, respectively, and the Monday was a statutory holiday?

Accepted Answer

The answer of Sonja is paid $42.50 per hour as...

Question 20

A seasonal manufacturing operation began the calendar year with 14 employees. It added seven on April 1, eight on May 1, and eleven more on June 1. Six were laid off on September 1 and another 14 were let go on October 1. What was the average number of employees on the payroll during the calendar year? (Assume that each month has the same length.)

Accepted Answer

The answer of A seasonal manufacturing operation began the calendar...

Quiz 1: Review and Applications of Basic Mathematics