Math 1008 – SAMPLE Test #1 (for FALL 2023)
-Your Test#1 includes a BE chart drawn from scratch
Date test was on: Thursday February 9, 2023
(Answers at back…. hopefully!)
Worth: 25% - Time: 2 Hours
Number of Days in a Month:
Jan 31 July 31
Feb 28 Aug 31
Mar 31 Sept 30
Apr 30 Oct 31
May 31 Nov 30
June 30 Dec 31
1) Fill in the complete chart (4 marks total)
Rate of Discount List Price Amount of Net Price
Discount
a/ 60% $500.00
b/ $80.00 $28.00
c/ 34% $495
d/ $50 $200
2) Fill in the entire Chart (6.4 Markdown)-6 marks
Question Regular Markdown Sale Price Cost (C) Expenses Total Operating
# Selling (E) Cost Profit
Price (TC) (P)
(L) (R) (N)
2a $60 30% $20 80% of Cost
2b 13 1/3 % $260.00 20% of $32
SALE Price
3) A car SOLD for a NET PRICE of $32,643.00 after multiple discounts of 25%,
10% and 7%. Determine: (4 marks)
a. The original LIST price (before the discounts) of the car.
b. The total dollar amount of discount
4) Thomas Shelby Gin Incorporated received an invoice dated August 27 for $60,000
with terms 3/15, net/40. Determine: (4)
(a) The last day for a cash discount
(b) The amount to fully pay off the invoice on this date.
5) Fill in (find) the red underlined blank box: (4 marks total)
Cost Selling Price Expenses/Overhead Profit
a) $20 $______ 35% of Cost 50% of cost
45% of 5% of the Selling
b) Selling $200 Price $_______
Price
6) Muskoka Chairs Incorporated makes wooden chairs that they plan to sell for $180.00 each. The
cost of wood per chair is $40.00 and the cost of a worker to assemble and finish each chair is $30.00.
The factory rent is $100,000 per year and other fixed costs are $120,000 total. Determine the
following: (8 marks total)
(a) The number of chairs needed to be sold to break-even.
(b) The number of chairs needed to be sold to make a profit of $44,000.
(c) How much profit would they make if they sold 5,000 chairs at a lower price of $160?
(d) The selling price they will have to charge to breakeven if the costs stay the same and
they sell exactly 8,000.
7) Justin and Sophie are planning a softball tournament where they expect a total of 240 players to
attend. Each player will get a T-shirt costing $6.00 and a cap costing $4.00 that matches their team
colour. It will also cost $520 to rent the four fields for the day and $800 for the four umpires
required. How much must the charge (selling price) each player, if they want to also raise (make a
profit of) $600 from the event for a local kid’s charity. (6 marks)
a) What are the total variable costs?
b) What are the total fixed costs?
c) What selling Price must be charged to make a profit of $600?
8) A retailer uses a rate of markup based on cost of 90%. If a RED purse
cost the store $152, what was the selling price? (3 marks)
9) A retailer uses a rate of markup based on cost of 90%. If a BLUE purse
has a selling price of $152, what was the cost of the purse? (3 marks)
10) Forever Young Fashions received a $2,400 invoice on February 7th, with payment
terms of 4/15, N/30. If they made a partial payment on February 14th to reduce the
amount owing to $1,500, how much did they pay on February 14 th? (4 marks)
a) How much credit did they get for the partial payment on Feb 14th?
b) How much did they actually pay (after the discount) on Feb 14th?
Answers to Sample Test#1 (I hope !!)
1) $300-$200, 65%-$52, $750-$225, 20%-$250
2) $42-$36-$6, $300-$176-$228
3) $52,000-$19,357
4) Sept 11-$58,200
5) $37-$100
6) 2,000-2400-$230,000-$97.50
7) $10, $1,320, $18
8) $288.80
9) $80
10) $900-$864
