21) A project was tendered in 2009 for US$3.5 million, when the exchange rate was US$1.0315 per $C. It started building in 2010 and the money was borrowed from the Canadian bank when the exchange rate fell to US$0.971 per $C. What is the increase in the amount borrowed? *

1 point

$106 883

$5719

$104 531

$110 250

$211 750

22) A local toolmaker makes the best hammers on the market. The head of the hammer costs $12.11 and the handle costs $4.37. It takes 1.4 minutes to assemble the hammer and the hourly cost is $90.00 for assembly time. The company has fixed operating costs of $22 310 per month. They sell the hammers for three times their total variable cost. The company wants to make a monthly profit of $5000. How many hammers must they sell?*

1 point

786

735

768

796

766

23) A local college hospitality restaurant has the best meals in town. The average variable cost per meal is $10.25 and the desserts are $1.25. The restaurant has fixed operating costs of $110 500 per month. They sell the meals and desserts for three times their average variable cost per meal. The college wants to make a monthly profit of $50 000. How many meals must they sell (Round up to nearest whole meal)? *

1 point

9769

6979

6500

8405

4805

24) A company has variable costs that are 4/7 the value of their sales revenues. Total net income for the most recent period was a profit of $53 770 and sales were $420 000. The company has started a new marketing campaign that they hope will increase sales, but it will require additional advertising of $6400. How many sales dollars does the company have to generate in order to remain at the same level of profitability as before the new ad campaign? *

1 point

$420 210.00

$140 396.67

$105 297.50

$326 357.50

$434 933.33

25) Excel hardware is introducing a new product on a new product line of capacity 800 units per week at a production cost of $50 per unit. Fixed costs are $22 400 per week. Variable selling and shipping costs are estimated to be $20 per unit. Excel plan to market the new product at $110 per unit. What would be the weekly net income at 90% of the capacity? *

1 point

$56 800

$7200

$6400

$20 800

$9600

26) A gas hedge trimmer cost a retailer $218.00 less 37%, 22%, 3.75%. It carries a regular selling price on its price tag at a markup of 82% of the regular selling price. During the end-of-season sale, the hedge trimmer is marked down 21%. What is the end-of-season sale price? *

2 points

$51.55

$78.11

$71.55

$452.54

$150.83

27) An invoice for $1121.45 with terms 2/10, n/30 is dated March 7. The contractor received it on March 14. What payment will settle the invoice, if the contractor pays it the next day? *

2 points

$1119.45

$1009.31

$22.43

$1121.45

$1099.02

28) You invest $10 000 in a savings account that pays interest of 8% compounded monthly. What is the value of your account after 14 months?*

2 points

$10 974.88

$10 970.88

$10 004.88

$10 074.88

$10 904.88

29) You want to retire with $400 000 in the bank and you are able to earn 6% compounded quarterly for the next 25 years. How much money do you have to invest today in order to achieve your goal? *

2 points

$90 251.78

$90 001.77

$90 251.77

$90 201.77

$90 001.78

30) You owe $4510 due in 7 months. In addition you owe $3780 due in 13 months and $5125 due in 21 months. You are paying 8.64% compounded monthly on your loan. What single amount three months from now will pay off the entire loan of the three future payments? *

2 points

$12 040.86

$12 444.86

$12 440.86

$12 404.86

$12 884.86