Questions from Business Mathematics

Q: This problem is designed to illustrate how the relative proportions of fixed

This problem is designed to illustrate how the relative proportions of fixed and variable costs affect a firm’s net income when the sales volume changes. Two hypothetical firms, Hi-Tech and Lo-Tech, m...

Q: In the year just ended, a small appliance manufacturer sold its

In the year just ended, a small appliance manufacturer sold its griddle at the wholesale price of $37.50. The unit variable costs were $13.25, and the monthly fixed costs were $5600. 1. If unit variab...

Q: Mickey’s Restaurant had a net income last year of $40,

Mickey’s Restaurant had a net income last year of $40,000 after fixed costs of $130,000 and total variable costs of $80,000. 1. What was the restaurant’s break-even point in sales dollars? 2. If fixed...

Q: A farmer is trying to decide whether to rent his neighbour’s land

A farmer is trying to decide whether to rent his neighbour’s land to grow additional hay for sale to feedlots at $180 per delivered tonne. The land can be rented at $400 per hectare for the season. Cu...

Q: A sporting goods manufacturer lost $400,000 on sales of

A sporting goods manufacturer lost $400,000 on sales of $3 million in a year during the last recession. The production lines operated at only 60% of capacity during the year. Variable costs represent...

Q: Ingrid processes and bottles jam in her home-based business.

Ingrid processes and bottles jam in her home-based business. Her fixed costs are $250 per month and the variable cost per jar is $1.20. She sells the jam to local grocery stores for $3.20 each. 1. How...

Q: ChildCare Industries manufactures infant car seats that it sells to retailers for

ChildCare Industries manufactures infant car seats that it sells to retailers for $155 each. The costs to manufacture each additional seat are $65, and the monthly fixed costs are $18,000. 1. How many...

Q: CD Solutions Ltd. manufactures and replicates CDs for software and music

CD Solutions Ltd. manufactures and replicates CDs for software and music recording companies. CD Solutions sells each disc for $2.50. The variable costs per disc are $1.00. 1. To just break even, how...

Q: A real estate salesperson can lease an automobile for five years at

A real estate salesperson can lease an automobile for five years at $500 per month payable at the beginning of each month, or purchase it for $32,000. She can obtain a loan at 3.75% compounded monthly...

Q: Express decimal and percent equivalent forms in the repeating decimal notation.

Express decimal and percent equivalent forms in the repeating decimal notation. Show just the minimum number of decimal places needed to display the repeating digit or group of digits. -7 270