Business Math - MA 134

1. (3 marks)

Industry Solutions is a manufacturer of a product with $15000 in total sales. Total variable cost is $7700 while fixed cost per month is $1220.

Use Total Revenue = Total Cost to find the break even point for this product in dollars.

2. (2 marks)

A brand of quality soccer balls is estimated to be sold at $40 each. They cost approximately $6 each to manufacture when taking materials and labour into consideration. The cost of renting the manufacturing facility is approximately $2000 per month. Use Contribution Margin to determine how many balls must be sold in order to break even.

3. (2 marks)

A company that makes environmental measuring devices has calculated their revenue and costs as follows for the most recent fiscal period:

Sales$783 000

Fixed Costs$205 000

Variable Costs$250 000

Use Contribution Rate to calculate the break-even point in dollars.

4. (2 marks)

Find the future value of a deposit of $1420 that is invested at 3.4% p.a. for a period of 8 months.

5. (2 marks)

What principal will accumulate to a value of $925 in 300 days at 4.2% p.a.?

6. (3 marks)

Your company was originally owed payments of $250 today, $420 in 7 months, and $180 in one year. The interest rate is 5.3% p.a. You have agreed to accept a single payment four months from today instead of the original three payments. How much will the single payment be?