Exercises 7.1
Complete the missing values for break-even volume calculations in problems 1 and 2 below:
Exercise 7.1, Solution 1:
#
Fixed Cost
(FC)
per month
Variable
cost (VC)
per unit
Selling
Price (S)
per unit
Break-even
volume (x)
per month
100
Total
Exercises 8.2
Exercise 8.2, Solution 1:
a.
January 01, 2011: 1st day of the year (using the table)
February 19, 2011: 50th day of the year (using the table)
Difference = 50 1 = 49 days
Therefore, the number of days in the given time period = 49 days. In t
Exercises 9.1
Calculate the missing values for Problems 1 and 2
Exercise 9.1, Solution 1:
Nominal Interest Rate,
Compounding Frequency,
and Time Period
a.
b.
c.
d.
5% compounded semiannually for 2 years
11.4% compounded
quarterly for 1 year and 6
months
8
Exercises 10.1
Identify the type of annuity and calculate the number of payments during the term in the following
problems:
Exercise 10.1, Solution 1:
Payments are made at the end of every month and
compounding period (quarterly) = payment period (quarter
Exercises 11.1
Identify the type of annuity, deferred period, annuity period, and number of payments for the investment
and payments in Problems 1 and 2:
Exercise 11.1, Solution 1:
a.
$500 is deposited in a savings account at the end of each month for 3 y
Exercises 12.1
Exercise 12.1, Solution 1:
This is an ordinary simple annuity because:
Payments are made at the end of each payment period (quarterly)
Compounding period (quarterly) = payment period (quarterly)
n = 4 payments/year 5 years = 20 quarterly pa
MATH 1052 Business Math
Week
Winter 2012
Day1
Day 3
Course Introduction
Lab Instruction
1 Jan 02-06
Day 2
1.1
1.3
2 Jan 09-13
1.4
1.5
2.1
3 Jan 16-20
2.2
2.5
Unit 1 Review
4 Jan 23-27
Unit 1 Test
20%
3.1
3.2
5 Jan 30-Feb 03
3.3
3.4
Chapter 3 Case
6 Feb 06
MATH 1052 Business Math
Week
1 Jan 02-06
Winter 2012
Day 1
Day 2
Day 3
Course Introduction
Lab Instruction
1.1
1.3
1.4
2 Jan 09-13
1.5
2.1
2.2
3 Jan 16-20
2.5
Unit 1 Review
Unit 1 Test
20%
4 Jan 23-27
3.1
3.2
3.3
5 Jan 30-Feb 03
3.4
Chapter 3 Case
4.1
6 F
Exercises 6.1
Exercise 6.1, Solution 1:
Exercise 6.1, Solution 3:
a. A lies in the second quadrant
b. B lies in the fourth quadrant
c. C lies in the first quadrant
d. D lies on the X-axis
e. E lies in the third quadrant
f. F lies on the Y-axis
Exercise 6.
Exercises 5.2
Calculate the missing values for questions 1 through 4:
Exercise 5.2, Solution 1:
List price (L)
Single discount rate (d)
Amount of discount (d L)
Net price (N)
a
$1875
20%
$375
$1500
b
$230
12%
$27.60
$202.40
c
$800
54%
$432
$368
d
$500
2%
Exercises 4.1
Exercise 4.1, Solution 1:
a.
500: 400: 800
Dividing all terms by their common factor 100, we get,
5:4:8
Dividing all terms by 4, we get
1.25 : 1 : 2
Therefore, the ratio in the lowest integer is 5 : 4 : 8 and the equivalent ratio having smal
Page 1 of 4
5.2 CASH DISCOUNTS
Cash discounts are not to be confused with trade discounts on list prices.
Apply any trade discounts first on the list price before applying any cash discounts
The invoice is a record of sale that is sent to the purchaser fo
5.3 MARKUP
THE SELLING PRICE OF AN ITEM SET BY A BUSINESS INCLUDES:
cost of purchasing the item for the business (trade discounts may apply here)
operating expenses or overhead must be paid (such as wages, rent, leases and utilities)
profit made on the
Solving Integrated Merchandising Problems
1. Write down what is given and what is wanted.
2. Draw the diagrams and/or write down the equations and fill
in what is given and what is wanted (with an x?).
3. Based in what is wanted and what is given, choose
Exercise 2.1
Exercise 2.1, Solution 1:
a. The 2nd term is 7x y, and the 3rd term is 4 y
b. The 3rd term is y, and the 4th term is 3
c. The 1st term is 9x y, and the 3rd term is 6 y
Exercise 2.1, Solution 3:
a. The coefficient of the first term 5x2 is 5, t