Mathematics for Business and Personal Finance

Chapter 16: Marketing

Practice Tests

1
The Chronicle, a local daily newspaper, conducted an opinion survey of 1,200 subscribers. Of those surveyed, 365 people would like to see more local news, 150 people would like more state news, 290 people would like more national news, and 395 people would like more sports news. What percent of the total people surveyed would like to see more sports news?
A)12.9%
B)24.2%
C)30.4%
D)32.9%
2
Two hundred seventy-five out of 500 people surveyed "like" the new flavor of yogurt. Suppose the manufacturer operates on the standard that over 90% must respond that they "like" the new flavor. What percent of the total people surveyed like it?
A)27.5%
B)55.0%
C)60.0%
D)92.1%
3
One thousand people tested cereal. One hundred twenty said they would buy it. The estimated market size is 3,500,000. The estimated rate of purchase is 6 times a year. What is the annual sales potential?
A)420,000
B)500,000
C)2,520,000
D)2,600,000
4
The Creamery developed a new flavor of ice cream called Coffee Toffee. The Creamery went to the boardwalk to test the new flavor. Of the 3,500 people who taste-tested Coffee Toffee, 2,300 people said they would likely buy it in the store. The Creamery sells its products in an area of 1,450,000 people. What is the sales potential for Coffee Toffee?
A)414 people
B)630 people
C)952,857 people
D)1,334,000 people
5
Trishare Manufacturing sold 780,000 plastic storage bins during the year. During the same period, a total of 9,000,000 plastic bins were purchased by the entire market. What was Trishare's market share for the year?
A)7.8%
B)8.7%
C)78.0%
D)87.0%
6
All Sports, a sporting goods store, had revenue of $1,113,000 during the year. Revenue for sporting goods stores in the area totaled about $8,654,000. What market share did All Sports have?
A)7.78%
B)12.86%
C)87.14%
D)92.22%
7
Kitten Kaboodle, a pet food and supply store, had revenues of $182,500 during the year. Revenues for pet supply stores in the area totaled about $334,000. What market share did Kitten Kaboodle have?
A)15.15%
B)18.30%
C)27.33%
D)54.64%
8
Sales of one particular brand of washing machine totaled $2,000,000. Revenues for all brands of washing machines totaled $9,000,000. Find the market share.
A)2.0%
B)9.0%
C)22.2%
D)26.4%
9
Coffee 'n' Cake have a 14% share of the market for dessert and coffee shops in the county. Revenue for coffee shops for next year is estimated to be $2,555,000. What is the projected sales figure for Coffee 'n' Cake for next year?
A)$357,700
B)$436,725
C)$714,000
D)$1,562,148
10
The Halfpipe, a skate shop, has a 34% share of the market for skateboarding clothing and supplies in the city. Revenues for similar shops in the city for next year are estimated to be $1,070,600. What is the projected sales figure for The Halfpipe for next year?
A)$364,004
B)$525,363
C)$656,704
D)$706,596
11
Community Market has a 4% share of the market for food sales in the Delta area. Food sales in the area for the next year are estimated to be $6,500,000. What is the projected sales figure for Community Markets for next year?
A)$4,000
B)$260,000
C)$400,000
D)$650,000
12
Use the advertising rates in the figure below to find the advertisement cost for one week for The Mitered Corner.
The ads will be three <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078805058/685868/ch16_p1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (0.0K)</a> page daily, one <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078805058/685868/ch16_p2.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (0.0K)</a> page on Saturday, and a full page on Sunday.

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078805058/685868/ch16_t1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (19.0K)</a>

A)$1,604
B)$2,410
C)$5,300
D)$7,280
13
Use the ad rates in problem 12.
The Daily News offers a 50% discount on a Monday ad that has already run on a Saturday and Sunday. Great Wolf Ski Resort contracts for a full page ad to run on Saturday, Sunday, and Monday. What is the cost of the ads?
A)$1,190
B)$2,050
C)$2,220
D)$2,380
14
Use the ad rates in problem 12. The Daily News also offers a 25% discount on a Saturday ad that also runs on the weekdays. Great Wolf contracts for a <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078805058/685868/ch16_p3.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (0.0K)</a> page ad to run daily (Monday to Friday) for three weeks and a Saturday ad. What is the cost of the ads?
A)$774
B)$1,080
C)$2,322
D)$2,436
15
Sal's Sports wants to advertise on television. The rates are $8,750 for daytime commercials and $74,500 for prime time. Sal's wants to run 5 daytime commercials and 4 prime-time commercials. How much will this ad campaign cost?
A)$43,750
B)$298,000
C)$341,750
D)$749,250
16
Phone Home wants to advertise on television. The rates are $8,500 for daytime commercials and $76,500 for prime time. The manager wants to run 6 daytime commercials and 8 prime-time commercials. How much will this ad campaign cost?
A)$51,000
B)$119,000
C)$612,000
D)$663,000
17
The manufacturers of Software Digitizer have planned an advertising campaign that includes four 30-second commercials and three 10-second daytime ad, plus five 30-second ads and four 60-second prime-time ads. The rates are $12,500 for a 30-second daytime commercial and $175,000 for a prime-time commercial. What is the cost of the advertising campaign?
[Reminder a 10-second ad is half the cost of a 30-second ad]
A)$68,750
B)$1,250,000
C)$2,275,000
D)$2,343,750
18
Cosmic Stars has a fixed overhead cost of $250,000 on its new star and moon bedding. The variable costs to produce the bedding are $1.75 per unit and the fixed costs per unit are $8.00. Cosmic Stars estimates that they could sell 400,000 sets of bedding at a selling price of $15.00 per set. Find the possible net profit.
A)$1,800,000
B)$2,100,000
C)$2,800,000
D)$5,300,000
19
Nobel Games manufactures board games. They have a fixed overhead of $125,000. The fixed costs per unit are $0.35 to produce the games. What selling price will maximize Nobel Games profits?

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078805058/685868/ch16_t2.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (19.0K)</a>

A)$8.00
B)$8.50
C)$9.00
D)$9.50
20
ALGEBRA Cheese Please is seeking a possible net profit of $250,000 on its new brand of cheese. The fixed costs for the production of the new cheese are $256,000 while the variable cost per unit is $1.10. If the estimated unit sales are 1,200,000, what selling price per unit should Cheese Please try?
A)$1.20
B)$1.52
C)$2.65
D)$3.40
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