Question 1. In the North American automotive markets, Toyota and Honda are two of the big players. The following financial information (all numbers in millions of dollars) for each was reported to its shareholders: Toyota Honda Total Revenue $247,734 $101,916 Total Variable Costs $204,135 $75,532 Total Fixed Costs $20,938 $24,453 Total Costs $225,073 $99,985 Net Income $22,661 $1,931 Compare the break-even points in total dollars between the two companies based on these reports.

Question 2. A surfboard manufacturer lost $500,000 last year during a recession. Total revenue was $5,000,000 and total variable costs were 40% of sales. The production facility ran at 50% capacity. The production manager wants to know the following: a) What is the percent capacity required to break-even? [Hint: last year, production ran at 50% capacity and sales were $5 mill. Determine full capacity revenue in order to determine percent capacity needed to break-even.] b) When the economy recovers this year, if the plant runs at 100% capacity what net income could the company realize? c) There is a possibility that sales could be so strong this year that the plant may be required to run at 120% capacity by offering a lot of overtime to its production workers. This would result in total variable costs rising by 35%. On a strictly financial basis, should the production manager plan to exceed capacity or should he advise top management to freeze production at 100% capacity? Justify your answer.

Question 3. The marketing manager for Tim Hortons is attempting to price a cup of coffee. She knows that the cost of the coffee is $0.14 per cup, and expenses are 30% of the regular selling price. She would like the coffee to achieve an 88.24% markup on selling price. a) What is the regular selling price for a cup of coffee? b) What is the profit per cup? c) What is the markup on cost percentage?

Question 4. Whistler Blackcomb Ski Resort purchased 400 pairs of skis for sale in its retail store. It sells the skis at an MSRP of $299.99. It is eligible to receive discounts of 35% and 20% on its purchase. Expenses average 15% of cost. If it sells 300 pairs of skis at the regular unit selling price and the other 100 skis are sold during a clearance sale for 20% off, what is the total amount of profit that Whistler Blackcomb earns? What is the average markup per unit (in $)? [Hint: use the number of skis sold at regular selling price and at clearance price to calculate a 'weighted' average markup per unit.]

Question 5. AGM Accounting received an invoice dated Jun 4th. The invoice is for office equipment and the supplier charged AGM $14,000 less 30%, with terms 4/15, n/45, ROG. The furniture arrives on Jul 10th. a) What date is the cash discount valid until? b) How much will AGM have to pay if it takes advantage of the cash discount? c) What date is the credit period valid until? d) Suppose AGM sends a $7,000 cheque for partial payment on Jul 17th. How much does AGM still owe after this payment? Assume the cash discount period has passed and we are still within the credit period.

Question 6: Jerry's Concrete allows his customers to create six-month promissory notes on any stamped concrete driveway project with interest at 8.9%. Three months after completing a $17,300 job on February 2, 2022, Jerry had some liquidity problems and sold the promissory note to a financial institution at an interest rate of 10.35%. Calculate Jerry's proceeds on the sale.

Question 7. A 364-day, $50,000 face value T-bill is issued when market yields are 2.85%. The T-bill is sold to another investor every 91 days until maturity, with yields of 3.1%, 2.98%, and 3.15% on each of the dates of sale, respectively. Compute the purchase price for each investor, including the date of issue. For each investor, calculate the actual rate of return realized on their investment.