Mathematics with Business Applications

Chapter 14:

Practice Test


1.	Mark-It produces glow-in-the-dark plastic bookmarks shaped like an 'M'. The machine operator stamps 24 bookmarks from each strip of glow-in-the dark plastic. Each strip costs $8.00. The operator can stamp 720 bookmarks per hour. The direct labor charge is $16.50 per hour. To the nearest tenth of a cent, what is the prime cost of manufacturing a bookmark?
		A)	$0.056
		B)	$0.356
		C)	$0.562
		D)	$0.688


2.	Tag-Eurit manufactures clothing price tags. It plans to manufacture 30,000,000 tags to be sold to garment factories and clothing stores at $0.005 each. The fixed costs are estimated to be $124,500. Variable costs are $0.0005 per unit. To the nearest whole number, how many tags must be sold for Tag-Eurit to break even?
		A)	15,000
		B)	22,636,364
		C)	24,900,000
		D)	27,666,667


3.	Carlos Ramirez is a quality control inspector for Dutchess Tool and Die. At 9 A.M. he checked 50 drill bits produced during the previous hours and found 2 defective bits. What is the percent defective?
		A)	2.00%
		B)	4.00%
		C)	20.00%
		D)	40.00%


4.	Trina Williams packs gourmet coffees for mail orders. Trina works an 8-hour day less two 15-minute breaks and one 30-minute lunch. It takes Williams 12 minutes to retrieve the correct coffee for the customer's order, pack, wrap, and address the box. How many boxes a day should Williams be able to get ready for shipment?
		A)	35 boxes
		B)	37 boxes
		C)	38 boxes
		D)	40 boxes


5.	Alicia Gellen works in the customer service department for a large department store. In an 8-hour day, 1 hour is spent on lunch and breaks, 2 hours are spent on wrapping gifts, 3 hours are spent on taking payments on customers' charge accounts, and 2 hours are spent on customer returns and exchanges. What percent of Gellen's time is spent on taking payments on customers' charge accounts?
		A)	25.0%
		B)	28.6%
		C)	37.5%
		D)	42.9%


6.	Cheese, Please, Inc. packs plastic-wrapped blocks of cheese for shipment to grocery store warehouses. The dimensions of the blocks of cheese are 4 centimeters long by 4 centimeters wide by 6 centimeters high. Twelve blocks of cheese will be packed in 3 rows of 4. The carton is made of 0.5 centimeter-thick corrugated cardboard with no partitions. What are the dimensions of the package that Cheese, Please needs?
		A)	5 cm length 5 cm width 6 cm height
		B)	5 cm length 5 cm width 7 cm height
		C)	17 cm length 13 cm width 6 cm height
		D)	17 cm length 13 cm width 7 cm height


7.	Muggsy, Inc. manufactures ceramic coffee mugs. The company plans to manufacture 50,000 mugs to be sold for $6.00 each. The fixed costs are estimated to be $187,000. Variable costs are $1.25 per unit. To the nearest whole number, how many mugs must be sold for Muggsy to break even?
		A)	8,333
		B)	31,167
		C)	39,369
		D)	40,000


8.	Nathan Carney is a quality control inspector for a company that manufactures fire extinguisher nozzles. At 9 A.M. he checked 30 nozzles produced during the previous hours and found 1 defective nozzle. What is the percent defective?
		A)	0.3%
		B)	3.3%
		C)	33.0%
		D)	33.3%


9.	Skye Meehan takes orders on the phone for a catalog mail-order company. Skye works an 8-hour day minus two 15-minute breaks and one 30-minute lunch. It takes Skye an average of 9 minutes to take a customer's order, address, and charge card information. What is the maximum number of complete orders Meehan should be able to take each day?
		A)	15
		B)	17
		C)	46
		D)	53


10.	John McClellan works in the city clerk's office. In an 8-hour day, 1 hour is spent on lunch and breaks, 2 hours are spent on processing traffic tickets, 2 hours are spent on processing tax payments, 2 hours are spent on bookkeeping and banking, and 1 hour is spent on filing. What percent of McClellan's time is spent on bookkeeping and banking?
		A)	12.50%
		B)	14.30%
		C)	25.00%
		D)	28.60%