Entrepreneurship and Small Business Management

Chapter 2: Your Potential As An Entrepreneur

Business Math Self Assessment

Small Business Math


1.	The Bike Emporium purchased an item for $56.20 and added a markup of $37.80. What is the retail price of the item?
		A)	$95
		B)	$94
		C)	$92
		D)	$93


2.	A manufacturer offers a promotional discount of $300 on an order of $15,000. What percentage of the total order is the discount?
		A)	2%
		B)	10%
		C)	20%
		D)	5%


3.	The opening cash fund for your sales register has the following coins and bills: 30 pennies, 15 nickels, 42 dimes, 40 quarters, 25 one-dollar bills, 5 five-dollar bills, 7 ten-dollar bills, and 2 twenty-dollar bills. The receipt you have for the fund indicates that you should have a total of $196.10. Do you? If not, how much more or less do you have?
		A)	I have the correct amount
		B)	I have $19.85 less.
		C)	I have $20.85 less.
		D)	I have $20.75 more.


4.	Sandra is paid $7.25 per hour and time-and-a-half for any hours over 8 worked in one day. Determine Sandra's gross wages for working the following hours one week: Tuesday 9-7, Wednesday 8-5, Thursday 9-5, Friday 9-6, and Saturday 9-5. (Each day has a one-hour non-paid lunch break.)
		A)	$290.50
		B)	$286.37
		C)	$319.00
		D)	$478.56


5.	Alvin takes out a business loan for $700. The bank charges 17 percent interest on the loan per year. Determine the simple interest Alvin will pay on the loan for a year.
		A)	$75
		B)	$819
		C)	$119
		D)	$581


6.	How much would four bottles of water cost if the price per six-pack is $3.12?
		A)	$1.56
		B)	$0.52
		C)	$0.78
		D)	$2.08


7.	Determine the mean for the following raw scores from a test used in a marketing research study: 29, 17, 57, 93, 35, 75, 48, 12, 88, 70, 73, and 68.
		A)	55.42
		B)	49.75
		C)	54.27
		D)	60.45


8.	Neisha's Bridal Boutique sold a veil for $325.04 at retail. The cost of the veil was $191.20. Determine the percentage markup based on cost for the veil.
		A)	100%
		B)	30%
		C)	70%
		D)	170%


9.	Bart contracts with the local newspaper for 75 column inches of advertising space for the year. The contract rate per column inch for 50-100 column inches is $6. What is Bart's annual newspaper advertising budget?
		A)	$400
		B)	$450
		C)	$350
		D)	$375


10.	Calculate the total purchase order for the following items: 6 boxes of ink pens @ $3.50 each, 10 reams of bond paper @ $13 each, 20 boxes of envelopes @ $2.50 each, and 3 packets of padded mailing envelopes @$0.75 each.
		A)	$203.25
		B)	$182.25
		C)	$191.50
		D)	$201.00


11.	Calculate the net amount of the invoice in problem 10, assuming that the stationery store offers your business a 17 percent trade discount.
		A)	$237.80
		B)	$153.20
		C)	$34.55
		D)	$168.70

Jamaar collected the following raw data from a survey of his customers. Use the data to answer questions 12-13.


12.	Determine the percentage of customers responding to selection A.
		A)	12%
		B)	13%
		C)	6.5%
		D)	26%


13.	What percentage of the customers responded to selection C?
		A)	64%
		B)	96%
		C)	32%
		D)	16%


14.	Determine the total sale, including sales tax, for a customer who purchases the following items: 8 picnic plates @ $2.20 each, 8 plastic cups @ $1.50 each, 1 picnic basket @ $22, 1 blanket @ $35, and 2 sets of plastic utensils @ $13.75. The sales tax rate is 5.7 percent.
		A)	$120.60
		B)	$91.54
		C)	$86.60
		D)	$114.10


15.	What is the net amount an employee will pay for a $217.00 coffee table after applying the 15 percent employee discount?
		A)	$200.00
		B)	$184.45
		C)	$32.55
		D)	$195.30


16.	Pet Paradise had total sales of $17,486 and expenses of $15,297. Calculate the difference between sales and expenses.
		A)	$1,566
		B)	$2,189
		C)	$5,610
		D)	$2,009


17.	What is the cost of a newspaper ad that measures 7 inches by 5 columns with an advertising rate of $12 per column inch?
		A)	$60
		B)	$350
		C)	$84
		D)	$420


18.	What is the value of goods sold for a shop with a beginning inventory of $12,345, purchases of $5,768, and an ending inventory of $9,959?
		A)	$8,154
		B)	$2,386
		C)	$16,536
		D)	$4,191


19.	A customer hands you a ten-dollar bill for a purchase that totaled $5.67. What should you give the customer as change?
		A)	4 one-dollar bills, 2 dimes, 3 pennies
		B)	1 five-dollar bill, 1 quarter, 1 nickel, 3 pennies
		C)	4 one-dollar bills, 1 quarter, 3 pennies
		D)	4 one-dollar bills, 1 quarter, 1 nickel, 3 pennies


20.	Bill's Beach Bum Bargains uses a 55 percent markup on the cost to determine its retail prices. What would be the retail price of an item that cost Bill $15?
		A)	$22.50
		B)	$23.25
		C)	$24.00
		D)	$24.75