Marketing Essentials

Unit 2: Economics

Math Workout

1
Company A sells CD players at the retail price of $40. Company B sells them at a discount for $30. What is the discount as a percentage of the retail price?
A)33%
B)25%
C)133%
D)75%
2
Hemler Corporation has a monopoly on a certain kind of microchip. Their production cost per chip is $.50, but the retail price of the chip is $4.50. What is the gross profit as a percent of production cost?
A)400%
B)900%
C)20%
D)800%
3
Before your company started producing a “low carb” shake, your competitor had a monopoly on the product. The competition was selling the shakes for $3.98 retail, but your company’s price is 50% lower. What is your company’s retail price?
A)$3.78
B)$5.97
C)$1.99
D)$7.96
4
Your boss has asked you to asses the risks involved with selling a new FDA approved skin care product. If the production and distribution costs are $1.18 per bottle for 5,000 bottles of the product, how much money is at stake if the company decides to take the risk?
A)$5,900
B)$4,100
C)$5,500
D)$5,950
5
De Moda Industries, the clothing company for which you work, has three product lines. Two of the lines were successful last year, making $1,673,900 and $2,401,000 in profits. The third line lost $140,230 because the clothing was apparently not stylish enough. What was the total profit margin for De Moda Industries?
A)$4,215,130
B)$2,934,670
C)$3,934,670
D)$2,672,600
6
In the state where your business is located, the government has increased minimum wage from $5.80 to $6.20 per hour. Your business believes in offering competitive salaries to its employees. For this reason, it has a policy of paying entry-level employees 125% of minimum wage. How much more will entry-level employees now make?
A)$0.10 per hour
B)$0.50 per hour
C)$0.40 per hour
D)$0.25 per hour
7
At the end of winter, Coats Are Us had a surplus of 2,300 winter coats that were offered at retail for $89. The marketing director decides to put the coats on sale for 60% off. She says that if she makes the discount any bigger, the production cost will exceed the sale price, and the company will see a loss. About how much did it cost to make each coat?
A)$142
B)$36
C)$53
D)$148
8
Last year your company sold 5,000 stuffed bears that had a retail price of $16. Market researchers have projected an increase in demand this year for stuffed bears, while your research shows that supply is down since your competitor stopped making bears. You decide to increase production by 20% and increase the price by 25%. How much should your company receive in revenue from stuffed bears this year if all of them are sold?
A)$120,000
B)$125,000
C)$80,000
D)$115,200
9
There is typically a shortage of gasoline during the summer months because demand increases. Capitalizing on the shortage, Gas Mart increased the price of Regular gasoline by 30%. If the initial price per gallon was $1.75, how much more will someone have to budget to fill a 12-gallon tank of gas?
A)$7.23
B)$6.30
C)$3.77
D)$9.00
10
As the production supervisor for your company, you have decided to offer a bonus to employees in order to increase employee productivity. For every 500 items each employee produces he or she will receive an $80 bonus. If one employee can produce 300 items in 8 hours, how much extra will you pay him or her in a forty-hour workweek?
A)$240
B)$200
C)$640
D)$400
11
This year you made $2,000 monthly. You have been promised a 3.25% increase in pay next year and a 1.25% increase to compensate for inflation. What will your total salary be next year?
A)$25,080
B)$2,090
C)$24,000
D)$2,900
12
The unemployment rate last year of Country X was 12% while in Country Y it was only 4%. If each country has a population of about 30 million people who are eligible to work, how many more people were jobless last year in Country X than in Country Y?
A)4,800,000
B)1,800,000
C)2,400,000
D)8,400,000
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