suppose you have \$100 in a savings account and the annual interest rate was 2%. After 5 years, how much do you think you would have in the account if you left the money to grow? More than $102 Exactly $102 Less than $102 Need more information to answer Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After one year, how much would you be able to buy with the money in this account? More than today Exactly the same as today Less than today Need more information to answer In which scenario do vou make more income for the year? Your gross paycheck every two weeks is $4,000.25% of each paycheck is withheld for taxes. At the end of the year (Tax Day), you owe $500 in additional takes to the government. Your gross paycheck every two weeks is $3,900.25% of each poycheck is withheld for taxes. At the end of the year (Tax Day), you receive a refund of $500 from the government. In which scenario do you make more income for the year? Your gross paycheck every two weeks is $4.000.27% of each paycheck is withheld for taxes. At the end of the year (Tax Day), you receive a refund of $2,000 from the government. Your gross paycheck every two weeks is $4,000.23% of each paycheck is withheld for taxes. At the end of the year (Tax Day), you owe $1,000 in additional takes to the government. Which two departments are performing best relative to the res of the company? Department A Department B Department C Department D Which two cereals would you add to maximize your gro Cereal A Cereal B Cereal C Cereal D Cereal E You have 100 cartons of eggs, all of which are set to expire in one week. The cartons are currently priced at $4.99, but they are not selling, and if you don't lower the price you will likely have to throw them all out in a week. You estimate that if you lowered the price to $4.49 you would sell 50 cartons and have to throw out the remaining 50. Priced at $3.99, you would sell 75 cartons and throw out 25. At $3.49, you would sell 90 and throw out 10. At $2.99, you would sell all 100 cartons. If each carton costs you $2.99 to purchase, what price should you charge customers for a carton of eggs? $2.99 $3.49 $3.99 $4.49 $4.99 You are trying to decide the best way to spend $10,000 on your business this year. You have a loan with the bank for $10,000, and you pay 10% interest each year on the outstanding balance. Option 1: you could pay back the entire $10,000 loan. Option 2: you could spend the $10.000 on Facebook advertising. Facebook charges $10 each time a customer clicks your ad, so you can expect 1,000 customers to click on your ad. You determine that 90% of those clicks come from existing customers, and 10% come from new customers. The existing customers won't spend any more or less after clicking the ad. The new customers will spend an average of $50 per month on which you earn a gross margin of 20%. Assume you will get 12 months of sales from the customers who click on your ad. Also assume that any new sales generated will not require any new costs that would affect your bottom line. How much will you save on interest in one year if you pay back the entire loan (Option 1)? $0 $100 $500 $1,000 $10,000 How should you spend the $10,000 on your business this year? Option l: repay the $10,000 loan Option 2: spend $10,000 on Facebook advertising How much does the restaurant make on one transaction when the customer does not use a Groupon gift certificate? (Assume customer transaction follows the averages stated above.) $10 $5 $1.60 $5 $6.60 $10 What incremental profit would you make this year from Option 2 , the Facebook ad (minus the cost of the ad)? Please ignore option 1 and the debt service related to the loan. $9,000 $5,000 $1,000 $2,000 $5,000 $50,000 Consider the following scenario. You are a restaurant owner looking to attract new customers. You are considering offering a Groupon to consumers to buy a $20 gift certificate to your restaurant for $10. A customer can use the gift certificate only once, and there are no restrictions on what the gift certificate can be used for. Which three additional pieces of information do you need to determine the profitability in dollars of a single transaction when a customer uses the Groupon gift certificate? You need exactly three pieces of information to determine the gross profit. Your average food and labor costs to prepare and serve a meal The number of Groupon vouchers that you would offer The number of customers that come to your restaurant in an average day How much Groupon keeps of the $10 the customer spends to buy the gift certificate The peak hours of the business The average amount a customer spends per transaction