Test Bank for Contemporary Business Mathematics with Canadian Applications, 12th edition By S. A. Hummelbrunner

Test Bank for Contemporary Business Mathematics with Canadian Applications, 12th edition By S. A. Hummelbrunner Contemporary Business Mathematics, 12e (Hummelbrunner) Chapter 1 Review of Arithmetic 1) Simplify: (28 - 4)/3 Answer: (28 - 4)/3 = 24/3 = 8 Diff: 1 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 2) Simplify: 8 + 6 ∗ 2 Answer: 8 + 12 = 20 Diff: 1 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 3) Simplify: 5(4 + 3) Answer: 5 ∗ 7 = 35 Diff: 1 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 4) Simplify: Answer: 5/20 = .25 Diff: 1 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 5) Simplify: Answer: 40/20 = 2 Diff: 1 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 6) Simplify: 9(8 - 5) + 5(6 + 4) Answer: 9 ∗ 3 + 5 ∗ 10 = 27 + 50 = 77 Diff: 1 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 7) Evaluate: Answer: 268/(4400 ∗ .4262295) = 268/1875.4098 = .1429021 Diff: 2 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 1 Copyright © 2021 Pearson Education, Inc. 8) Evaluate and round to 3 decimal places: 125(6 + 0.35 ∗ 142/678) Answer: 125 ∗ (6 + 0.35 ∗ 0.2094395) = 125 ∗ (6 + 0.0733038) = 125 ∗ (6.0733038) = 759.163 Diff: 2 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 9) Evaluate: 400(1 + .10 ∗ 100/365) Answer: 400 ∗ (1 + .10 ∗ .2739726) = 400 ∗ (1 + .) = 400 ∗ (1.) = 410.959 Diff: 2 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 10) Evaluate and round to one decimal place: 9210(5 - 1.38 ∗ 169/420) Answer: 9210 ∗ (5 - 1.38 ∗ 0.) = 9210 ∗ (5 - 0.5552857) = 9210(4.444714) = 40,935.8 Diff: 2 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 11) Evaluate: Answer: 2424/(1 + .2 ∗ .4547945) = 2424/(1 + .0909589) = 2424/1.0909589 = 2221.899 Diff: 2 Type: SA Page Ref: 6-11 Topic: 1.2 Fractions Objective: 1-2: Determine equivalent fractions, and convert fractions to decimals, decimals to percents, and vice versa. 12) Evaluate and round to three decimal places: Answer: 3140/(2 + 0.35 * 0.2123288) = 3140/(2 + 0.0743151) = 2910/2. = 1513.753 Diff: 2 Type: SA Page Ref: 7-13 Topic: 1.2 Fractions Objective: 1-2: Determine equivalent fractions, and convert fractions to decimals, decimals to percents, and vice versa. 13) Evaluate: Answer: 5000/(1 + .1 ∗ .5) = 5000/(1 + 0.05 ) = 5000/1.05 = 4761.90 Diff: 2 Type: SA Page Ref: 6-11 Topic: 1.2 Fractions Objective: 1-2: Determine equivalent fractions, and convert fractions to decimals, decimals to percents, and vice versa. 2 Copyright © 2021 Pearson Education, Inc. 14) Spade Realty sold lots for $23 240 per hectare. What is the total sales value if the lot sizes, in hectares, were 2 , 3 , 4 ? Answer: 23240 ∗ ( + 3 + 4 ) = 23240 ∗ (2 10/20 + 3 5/20 + 4 4/20) = 23240 ∗ (9 19/20) = 23240 ∗ 9.95 = $231238 Diff: 2 Type: SA Page Ref: 6-11 Topic: 1.2 Fractions Objective: 1-2: Determine equivalent fractions, and convert fractions to decimals, decimals to percents, and vice versa. 15) Three mechanics worked 15 , 14 , 18 hours respectively. What was the total cost of labour if the mechanics were paid $14.75 per hour? Answer: Total Hours = 15 + 14 + 18 = 15.5 + 14.75 + 18.125 = 48.375 Total cost of labor = 48.375 ∗ 14.75 = $713.53 Diff: 2 Type: SA Page Ref: 6-11 Topic: 1.2 Fractions Objective: 1-2: Determine equivalent fractions, and convert fractions to decimals, decimals to percents, and vice versa. 16) Ana, Aamir and Charlotte worked 11 , 14 , and 22 hours respectively. What was the total cost of labour if they were paid $18.00 per hour? Answer: Total Hours = 11 + 14 + 22 = 11.75 + 14.65 + 22.80 = 49.20 Total cost of labor = 49.20 ∗ 18.00 = $885.60 Diff: 2 Type: SA Page Ref: 7-13 Topic: 1.2 Fractions Objective: 1-2: Determine equivalent fractions, and convert fractions to decimals, decimals to percents, and vice versa. 17) A retailer returned 300 defective items to the manufacturer and received a credit for the retail price of $0.75 less a discount of 1/3 of the retail price. What was the amount of the credit received by the retailer? Answer: Retail value = 300($0.75) = $225 Credit = (1-1/3 )∗ $225 = (2/3) ∗ $225 = $150 Diff: 2 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 3 Copyright © 2021 Pearson Education, Inc. 18) Complete the following inventory sheet and find the total value. Item Quantity Cost per Unit Total 1 69 $.85 2 111 16 2/3 cents 3 155 $2.75 4 350 $1.66 Answer: × 0.85 = $58.65 111 × 0.16 2/3 = 330 × 0.1666667 = 18.50 155 × 2.75 = 426.25 350 × 1.66 = 581.00 Diff: 1 Type: SA Page Ref: 16-21 $1084.40 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 19) Extend each of the following and determine the total. Quantity Unit Price 48 $2.45 48 $0.83 16 $2.12 60 $1.33 Answer: Quantity Unit Price Value 48 $2.45 $117.60 48 0.83 1/8 39.90 16 2.12 33.92 60 1.33 1/6 79.90 Total: $271.32 Diff: 1 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 4 Copyright © 2021 Pearson Education, Inc. 20) Purchases of packs of printing paper during the last accounting period were as follows: Number of items Unit price 8 $13.00 4 $12.00 15 $10.00 10 $10.50 What was the weighted average price per item? Answer: Number of items Unit price Weighted value 8 × $13.00 = 104.00 4 × $12.00 = 48.00 15 × $10.00 = 150.00 10 × $10.50 = 105.00 Total: 37 407.00 Average price was 407/37 = $11.00 Diff: 2 Type: SA Page Ref: 17-24 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 21) Purchases of an inventory item during last month were as follows: Number of items Unit price 5 $5.00 10 $8.00 8 $6.00 15 $3.00 What was the weighted average price per item? Answer: Number of items Unit price Weighted value 5 × $5.00 = 25.00 10 × 8.00 = 80.00 8 × 6.00 = 48.00 15 × 3.00 = 45.00 Total: 38 198.00 Average price was 198/38 = $5.21 Diff: 2 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 5 Copyright © 2021 Pearson Education, Inc. 22) Noriko's final mark for her Financial Mathematics course was based on four tests with different weightings. Test one counted for 10% of the final grade, test two for 20%, test three for 30% and test four for 40%. If Clara received 70% on test one, 85% on test two, 64% on test three and 72% on test four, calculate her final mark. Answer: = 70(0.1) + 85(0.2) + 64(0.3) + 72(0.4) = 7 + 17 + 19.2 + 28.8 = 72 Diff: 2 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 23) On a trip, a motorist purchased gasoline as follows: 66 litres at 69.0 cents per litre; 69 litres at 70.5 cents per litres; 80 litres at 71.5 cents per litre; and 57 litres at 74.5 cents per litre. a) What was the average number of litres per purchase? b) What was the average cost per litre? c) If the motorist averaged 9.75 km per litre, what was her average cost of gasoline per kilometre? Answer: a) 66 + 69 + 80 + 57 = 272 Average number of litres = 272 ÷ 4 = 68 b) Average cost per litre: Total cost = 66 × 69.0 = 45.54 69 × 70.5 = 48.645 80 × 71.5 = 57.20 57 × 74.5 = 42.465 193.85 cents Average cost = 193.86 ÷ 272 = 71.27 cents c) Average cost per km = 71.27 ÷ 9.75 = 7.3097436 cents Diff: 2 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 24) Dorian Frump invested $12 500 in a business on January 1. She withdrew $850 on April 3, reinvested $1920 on August 1, and withdrew $700 on September 1. What is Don's average monthly investment balance for the year? Answer: Weighted investment: January 1 — March 31: 12500 × 3/12 = 3125.0000 April 1 - July 31: 11650 × 4/12 = 3883.3333 August 1 - August 31: 13570 × 1/12 = 1130.8333 September 1 - December 31: 12870 × 4/12 = 4290.0000 Average investment balance = $12429.17 Diff: 2 Type: SA Page Ref: 17-24 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 6 Copyright © 2021 Pearson Education, Inc. 25) Tommy Hughes invested $10 000 in a business on January 1. He withdrew $1000 on March 1, reinvested $5000 on July 1, and withdrew $4000 on October 1. What is Tommy's average monthly investment balance for the year? Answer: Weighted investment: January 1 - February 28: 10000 × 2/12 = 1666.6700 March 1 - June 30: 9000 × 4/12 = 3000.0000 August 1 - August 31: 14000 × 3/12 = 3500.0000 September 1 - December 31: 10000 × 3/12 = 2500.0000 Average investment balance = $10666.67 Diff: 2 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 26) The following information is shown in your investment account for last year. The balance on January 1 was $7600.00. A withdrawal of $420.00 was made on March 1. A deposit of $1690.00 was made on May 1 and another deposit of $130.00 was made on October 1. What was the average monthly balance for the year in your account? Answer: Date Balance Months Weighted value January March May October Total: Average monthly balance = 100130/12 = $8344.17 Diff: 2 Type: SA Page Ref: 17-24 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 27) Kevin Ash earns a semi-monthly salary of $1023.40 and works a regular workweek of 40 hours. a) What is Kevin's hourly rate of pay? b) If Kevin's gross earnings in one pay period were $1390.47, for how many hours of overtime was he paid at time and one-half of his regular pay? Answer: a) Semimonthly pay = $1023.40 Yearly salary = $24 561.60 Weekly gross pay = 24561.60 ÷ 52 = $472.34 Hourly rate = 472.34 ÷ 40 = $11.81 b) Gross pay = 1390.47 Regular pay = - 1023.40 Overtime pay = 367.07 Number of overtime hours = (367.07 ÷ 1.5) ÷ 11.81 = 20.72 hrs. Diff: 3 Type: SA Page Ref: 24-32 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 7 Copyright © 2021 Pearson Education, Inc. 28) R.J. earns $11.70 an hour, with time-and-a-half for hours worked over 36 a week. His clock hours for a week are 10.5, 7.5, 11, 13, and 9.75. Determine his gross earnings for a week. Answer: Total hours = 10.5 + 7.5 + 11 + 13 + 9.75 = 51.75 Regular weekly earnings = 36 × $11.70 = $421.20 Overtime earnings = (51.75 - 36) × $11.70 × 1.5 = $276.41 Gross = Regular time + Overtime = $421.20 + $276.41 = $697.61 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 29) Florence Lamb is paid a commission of 10 3/4% on her net sales and is authorized to draw up to $900.00 a month. What is the amount due to Florence at the end of a month in which she drew $820.00, had sales of $14 660.00, and sales returns of $331.20? Answer: Gross sales = $14660.00 Less: returns = 331.20 Net sales = 14328.80 Gross commission = 14328.80 × .1075 = 1540.35 Less: drawings 820.00 Amount due Diff: 2 Type: SA Page Ref: 23-29 $720.35 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 30) A sales representative selling computer parts receives a commission of 3.5% on net sales up to $15 000.00, 7% on the next $6000.00, and 9% on any further sales. If his sales for a month were $34 250.00 and sales returns were $1055.00, what was his commission for the month? Answer: Gross sales = $34250.00 Less: returns = 1055.00 Net sales = $33195.00 Commission: = .035 × 15000.00 = $525.00 = .07 × 6000.00 = 420.00 = .09 × 12195.00 = 1097.55 Total commission = $2042.55 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 8 Copyright © 2021 Pearson Education, Inc. 31) A salesperson had gross earnings of $943.25 for last week on gross sales of $8320.00. If returns and allowances were 5.5% of gross sales, what is his rate of commission based on net sales? Answer: Net sales = (1 - .055) * 8320 = 7862.40 Commission rate = = 11.997% Diff: 3 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 32) A salesperson is paid a weekly salary of $350.00 or a commission of 14.5% of his sales, whichever is the greater. What is his earnings for a week in which his sales were a) $2480.00? b) $3780.00? Answer: a) Salary = $350.00 Commission = .145 ∗ 2480.00 = $359.60 Gross earnings = $709.60 b) Salary= $350.00 Commission = .145 ∗ 3780.00 = $548.10 Gross earnings = $898.10 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 33) Beth's annual salary is $42 120.00. Her regular work-week is 36 hours and she is paid semi-monthly. a) Calculate her gross pay period b) Calculate her hourly rate of pay c) Calculate her gross pay for a period in which she works 12 hours of overtime at time and one-half regular pay. Answer: a) = $1755.00 b) = $22.50 c) Overtime = 12 × 22.50 × 1.5 = $405.00 Gross pay = 1755.00 + 405.00 = $2160.00 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 9 Copyright © 2021 Pearson Education, Inc. 34) Scott Rae had gross earnings of $554.30 for last week. Scott earns a base salary of $350.00 on a weekly quota of $4 500.00. If his sales for the week were $6124.00, what is his commission rate? Answer: Gross earnings = $554.30 Less: base salary = 350.00 Commission: = $204.30 Sales for week = $6124.00 Quota Commission sales Rate of commission = = = 4500.00 $1624.00 = 12.58% Diff: 3 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 35) A.J. is paid an annual salary of $41 840.00. She is paid monthly on a 40-hour work week. What is the gross pay for a pay period in which she works 9 hours overtime at time-and-a-half regular pay? Answer: Weekly pay = = 804.6154 Hourly pay = = $20.1154 Regular monthly earnings = = 3486.67 Overtime earnings = 20.1154 × 9 ∗ 1.5 = 271.56 Gross = Regular time + Overtime = 3486.66 + 271.56 = $3758.22 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 36) Corrine Davis had gross earnings of $937.50 for the week. If she receives a base salary of $664.00 on a quota of $7800.00 and a commission of 6.75% on sales exceeding the quota, what were Corrine's sales for the week? Answer: Gross earnings = 937.50 Less: base salary = 664.00 Commission: 273.50 Commission sales = = 4051.85 Sales for week = $(7800 + 4051.85) = $11 851.85 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 10 Copyright © 2021 Pearson Education, Inc. 37) Abigail receives a commission of 4.5% on the first $1250.00 of sales during a week. On the next $4500.00 she receives a commission of 11.5%. On any additional sales, the commission rate is 13.75%. Find her gross earnings for a week during which her sales amount to $14 200.00. Answer: Commission on first $1250.00 is 0.045 × 1250.00 = 56.25 Commission on next $4500.00 is 0.115 × 4500.00 = 517.50 Commission on remainder = 0.1375 × 8450 = 1161.875 After rounding to the nearest cent, gross earnings are $1293.63. Diff: 2 Type: SA Page Ref: 24-32 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 38) Last week Dana worked 46 hours. For the regular workweek of 40 hours she is paid $12.40 per hour, and for every hour over 40 hours she is paid at time and one-half regular pay. How much did she earn last week? Answer: For the first 40 hours = 40(12.40) = 496.00 For the next 6 hours = 6(12.40 + 6.20) = 111.60 The total = 496.00 + 111.60 = $607.60 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 39) Kim Farrena earns $17.60 per hour. Overtime from Monday to Friday is paid at time and one-half regular pay for any hours over 7 1/2 per day. Overtime on weekends is paid at double the regular rate of pay. Last week Kim worked regular hours on Monday, Wednesday, and Friday, 8.5 hours on Tuesday, 11.75 hours on Thursday, and 5 hours on Saturday. Determine Kim's gross wages by each of the two methods. Answer: Method A Regular hours = 37.5 × 17.60 = 660.00 Overtime pay = 5.25 × 17.60 × 1.50 = 138.60 5 × 17.60 × 2 = 176.00 Gross earnings = $974.60 Method B At regular rate: 47.75 × 17.60 = 840.40 Overtime premium: 5.25 × 17.60 × 0.50 = 46.20 Overtime premium 5 × 17.60 × 1 = 88.00 Gross earnings Diff: 3 Type: SA Page Ref: 23-29 = $974.60 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 11 Copyright © 2021 Pearson Education, Inc. 40) C.O. is paid a semi-monthly salary of $1 250.00. If his regular work week is 35 hours, what is his hourly rate of pay? Answer: Annual salary = 1250.00 × 24 = 30000.00 Weekly pay = = 576.92 Hourly rate = = $16.48 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 41) C.O. is paid a semi-monthly salary of 2 754.30. If his regular work week is 42 hours, what is his hourly rate of pay? Answer: Annual salary = 2754.30 × 24 = 66103.20 Weekly pay = = 1271.22 Hourly rate = = $30.27 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 42) An employee receives a gross pay of $750.73 for 47.25 hours of work. What is the hourly rate of pay if a regular work week is 37.5 hours and overtime is paid at time-and-a-half the regular rate of pay? Answer: Let the regular rate of pay be y. Regular weekly pay = 37.5y Overtime pay = (9.75 × 1.5)y = 14.625y Total pay = 37.5y + 14.625y = 750.7 52.125y = 750.73 y = 14.40 The regular rate of pay is $14.40 Diff: 3 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 12 Copyright © 2021 Pearson Education, Inc. 43) Ali checked his pay stub on his employee portal and it showed gross earnings of $596.00 for 51 hours of work. What is his hourly rate of pay if the regular workweek is 40 hours and overtime is paid at time and one-half the regular rate of pay? Answer: Total hours = 51 Regular hours = 40 Overtime hours = 11 At time-and-a-half, overtime hours are equivalent to 11 × 1.5 = 16.5 regular hours Rate of pay = 596/56.5 = $10.55 Diff: 3 Type: SA Page Ref: 24-32 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 44) Barb's Home Income Tax business operates only during tax season. Last season Barb grossed $38 790 including GST. During that season she spent $9500 before GST on her paper and supply purchases. How much does Barb owe Revenue Canada for GST? Answer: Barb's revenue of $38 790 includes 5% GST. GST taxable revenue = = 36 942.86 GST collected = 5% of 36 942.86 = 1 847.14 GST paid = 5% of 9 500 = 475.00 Barb owes Revenue Canada $1847.14 - $475 = $1372.14 Diff: 2 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 45) "Save the tax" is a popular advertising tactic. How much would you save on the purchase of a sweater with a list price of $52.00 in a Manitoba store during a "Save the PST" promotion? Answer: Savings on PST = 7% of $52.00 = 0.07(52.00) = $3.64 Diff: 1 Type: SA Page Ref: 32-36 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 13 Copyright © 2021 Pearson Education, Inc. 46) A retail chain sells snowboards for $855.00 plus GST and PST. What is the price difference for consumers in London, Ontario, and Lethbridge, Alberta? Answer: Total cost in London Retail price = $855.00 HST = 13% of $855.00 = 0.13(855) $111.15 Total cost in London = $966.15 Total cost in Lethbridge Retail price = $855.00 GST = 5% of $855.00 = 0.05(855) $42.75 PST nil Total cost in Lethbridge $897.75 Difference = PST Diff: 2 Type: SA Page Ref: 30-33 $68.40 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 47) Emily's residence is assessed by the local taxation department at $249 500.00. Calculate the property taxes paid on this property if the existing mill rate is 15. Answer: 249500 × = $3742.50 Diff: 1 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 48) Calculate the property tax on a property located in the City of Brampton and assessed at $326 500 if the current tax rate is 1.05351%. Answer: Property tax = $326 500 × 1.05351/100 = $3439.71 Diff: 1 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 49) Sean's residence is assessed by the local taxation department at $160 000. Calculate the property taxes paid on this property if the existing mill rate is 20. Answer: 160 000 × = $3200.00 Diff: 1 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 50) The town of Pandora assesses property at market value. How much will the owner of a house valued at owe in taxes if this year's mill rate has been set at 21.386? Answer: Property tax = 32500 = $6950.45 Diff: 2 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 14 Copyright © 2021 Pearson Education, Inc. 51) A town has an assessed residential property value of $. The town council must meet the following expenditures: Education: $ General Purposes: $2 100 000 Recreation: $270 000 Public works: $670 000 Police and fire protection: $857 500 a) Suppose 70% of the expenditures are charged against residential real estate. Calculate the total property taxes that must be raised. b) What is the mill rate? c) What is the property tax on a property assessed at $235 000? Answer: a) Total expenditure = $( + 2100000 + 270000 + 670000 + 958500) = Total residential property tax = 0.70() = $ b) Residential mill rate = (1000) = 29.895 c) Property tax = $235000 = $7025.33 Diff: 2 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 52) Extend and total the following invoice. Quantity Description Unit Price Amount 77 Item A $0.65 208 Item B $83 621 Item C $1.19 414 Item D $1.95 Total Answer: 77 × 0.65 = $50.05 208 × 0.83 = 173.16 621 × 1.19 = 738.99 414 × 1.95 = 807.30 $1769.50 Diff: 1 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 15 Copyright © 2021 Pearson Education, Inc. 53) Denise Jantz invested $35 000 on January 1 in a partnership. She withdrew $5000 on June 1, withdrew a further $1900 on August 1, and reinvested $6 000 on November 1. What was her average monthly investment balance for the year? Answer: January 1 - May 31: 35000 × 5 = 175000 June 1 - July 31: 30000 × 2 = 60000 August 1 - October 31: 28100 × 3 = 84300 November 1 - December 31: 34100 × = 68200 Total 387500 Average monthly investment = = $32 291.67 Diff: 2 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 54) Jessica Hughes invested $40 000 on January 1 in a partnership. She withdrew $15 000 on June 1, withdrew a further $2000 on August 1, and reinvested $8 000 on November 1. What was her average monthly investment balance for the year? Answer: January 1 - May 31: 40000 × 5 = 200000 June 1 - July 31: 25000 × 2 = 50000 August 1 - October 31: 23000 × 3 = 69000 November 1 - December 31: 31000 × = 62000 Total 381000 Average monthly investment = = $31 750.00 Diff: 2 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 55) Carla is paid a semi-monthly salary of $1870.80. Her regular workweek is 40 hours. Overtime is paid at time and one-half regular pay. a) What is Carla's hourly rate of pay? b) What is Carla's gross pay if she worked 7 1/2 hours overtime in one pay period? Answer: a) Annual salary = 24 × 1870.80 = 44899.20 Weekly salary = 44899.20 ÷ 52 = 863.45 Hourly rate of pay = = $21.58625 b) Regular semimonthly pay = 1870.80 Overtime pay = 7.5 × 21.58625 × 1.5 = 242.85 Gross earnings Diff: 2 Type: SA Page Ref: 23-29 $2113.65 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 16 Copyright © 2021 Pearson Education, Inc. 56) Tom is employed at an annual salary of $50 292.48. His regular workweek is 37.5 hours and he is paid semi-monthly. a) What is Tom's gross pay per period? b) What is his hourly rate of pay? c) What is his gross pay for a period in which he worked 12 1/2 hours overtime at time and one-half regular pay? Answer: a) Semimonthly pay = 50292.48 ÷ 24 = 2095.52 b) Weekly pay = 50292.48 ÷ 52 = 967.16308 Hourly rate = 967.16308 ÷ 37.5 = 25.791015 c) Regular earnings = 2095.52 Overtime pay = 12.5 × 25.791015 × 1.5 = 483.58 Gross earnings = Diff: 2 Type: SA Page Ref: 23-29 $2579.10 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 57) Last week April worked 44 hours. She is paid $11.20 per hour for a regular workweek of 40 hours and overtime at time and one-half regular pay. a) What were April's gross wages for last week? b) What is the amount of the overtime premium? Answer: a) Regular earnings = 40 × 11.20 = 448.00 Overtime pay = 4 × 11.20 × 1.5 = 67.20 Gross earnings = $515.20 b) Overtime premium = 4 × 11.20 × 0.5 = $22.40 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 58) Nick's gross earnings for one week was $698.10. His regular rate of pay is $15.60 for a 35 hour week and overtime is paid at time and one-half regular pay. Calculate the number of hours that Nick worked. Answer: Gross earnings = 698.10 Regular earnings = 35 × 15.60 = 546.00 Overtime pay = 698.10 - 546.00 = 152.10 Overtime hours = = 6.5 hours Total number of hours worked = 35 + 6.5 = 41.5 hours Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 17 Copyright © 2021 Pearson Education, Inc. 59) Mohammad is paid a weekly commission of 2% on net sales of $6000.00, 4% on the next $3 000.00 and 6.25% on all further sales. His gross sales for a week were 11 160.00 and sales returns and allowances were $120.00. a) Calculate his gross earnings for the week. b) Calculate the average hourly rate of pay for the week if he worked 40 hours. Answer: a) Net sales = Gross sales - Returns = = 11 040 Commission: 2% of 6000 = 120.00 4% of 3000 = 120.00 6.25% of () = 127.50 Gross earnings = 120.00 + 120.00 + 127.50 = $367.50 b) Average hourly rate = 367.50 ÷ 40 = $9.19 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 60) September is paid on a weekly commission basis. She is paid a base salary of $370.00 on a weekly quota of $9500.00 and a commission of 5.75% on any sales in excess of the quota. a) If September's sales for last week were $11 340.00, what were her gross earnings? b) What are September's average hourly earnings if she worked 35 hours? Answer: a) Base salary on quota of $9500 = 370.00 Commission = 5.75% on 1840 = 105.80 Gross earnings = $475.80 b) Hourly rate = 475.80 ÷ 35 = $13.59 Diff: 3 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 61) Bill earned a gross commission of $2551.05 during August. What were his gross sales if his rate of commission is 14.5% of net sales and sales returns and allowances for the month were 6% of his sales? Answer: Net sales = 2551.05 ÷ 0.145 = 17593.448 Net sales = Gross sales - returns 17593.448 = Gross sales - 6% of Gross sales 17593.448 = 94% of Gross sales Gross sales = = $18 716.43 Diff: 3 Type: SA Page Ref: 16-21 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 18 Copyright © 2021 Pearson Education, Inc. 62) Yanping receives a monthly salary of $1931.54 paid semi-monthly. The regular workweek is 38 hours. a) Calculate the hourly rate of pay. b) If the gross earnings for one pay period is 1270.75, for how many hours of overtime was Yanping paid at double-time regular pay. Answer: a) Annual gross earnings = 1931.54 × 12 = 23 178.48 Weekly gross earnings = = 445.74 Hourly rate of pay = = $11.73 b) Regular semi-monthly gross earnings = = 965.77 Overtime pay = 1270.75 - 965.77 = 304.98 Overtime rate = 11.73 × 2 = 23.46 Overtime hours = = 13 hours Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 63) Norm Bates is paid a semi-monthly salary of $792.50. Regular hours are 37 1/2 per week and overtime is paid at time and one-half regular pay. a) What is Norm's hourly rate of pay? b) How many hours overtime did Norm work in a pay period for which his gross pay was $946.30? Answer: a) Annual salary = 792.50 × 24 = 19020.00 Weekly pay = 19020.00 ÷ 52 = 365.76923 Hourly rate of pay = 365.76923 ÷ 37.5 = $9.75 b) Gross earnings = 946.30 Regular earnings = 792.50 Overtime pay = 153.80 Overtime hourly rate = 9.75 × 1.5 = 14.625 Overtime hours = 153.80 ÷ 14.625 = 10.516 hr. Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 19 Copyright © 2021 Pearson Education, Inc. 64) Mark's gross wages for a week were $711.20. His regular workweek is 40 hours and overtime is paid at time and one-half regular pay. What is Mark's regular hourly wage if he worked 45 1/2 hours? Answer: Total hours = 45.5 Regular hours = 40.00 Overtime hours = 5.5 5.5 overtime hours are equivalent to 5.5 × 1.5 = 8.25 regular hours. Hourly rate of pay = = $14.74 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 65) Shaggy's Grocery Store shows sales revenue (exclusive of GST) of $235 000 for the year. Shaggy's GST taxable expenses were (exclusive of GST) $24 750. How much should he remit to the government at the end of the year? Answer: GST collected = 5% of $235000 = 0.05(235000) = 11750.00 GST paid = 5% of $24750 = 0.05(24750) = - 1237.50 GST remittance Diff: 2 Type: SA Page Ref: 32-35 = $10512.50 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 66) A store located in Penticton, B.C., sells a computer for $2975.00 plus HST. If the same model is sold at the same price in a store in Thunder Bay, Ontario, what is the difference in the prices paid by consumers in the two stores? Answer: Amount paid in Penticton, BC = Retail Price + 12% HST = 2975(1.12) = $3332.00 Amount paid in Thunder Bay, ON = Retail price + 13%HST = 2975(1.13) = $3361.75 The difference = 3361.75 - 3332 = $29.75, that is the 1% difference in the HST. Diff: 2 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 20 Copyright © 2021 Pearson Education, Inc. 67) A computer store located in Oakville, Ont., sells a laptop for $1000.00 plus HST. If the same model is sold at the same price in a store in Victoria, B.C.., what is the difference in the prices paid by consumers in the two stores? Answer: Amount paid in Oakville, Ont = Retail Price + 13% HST = 1000(1.13) = $1130 Amount paid in Victoria, B.C. = Retail price + 12% HST = 1000 (1.12) = $1120 The difference = = $10.00, that is the 1% difference in the HST Diff: 2 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 68) Two people living in different communities build houses of the same design on lots of equal size. If the person in Airdrie has his house and lot assessed at $165 000 with a mill rate of 22.051 mills, will his taxes be more or less than the person in Kimberly with an assessment of $145 000 and a mill rate of 25.124 mills? Answer: Property tax in Airdrie = 165000 = 3638.42 Property tax in Kimberly = 145000 = 3642.98 The person in Kimberly pays $4.56 more in property tax. Diff: 2 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 69) Extend each of the following and determine the total. Quantity Unit Price 74 $1.35 90 16 70 $0.885 58 $1.35 Answer: 74 × 1.35 = 99.90 90 × 0.16 = 14.70 70 × .885 = 61.95 58 × 1.35 = 78.30 Total $254.85 Diff: 1 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 21 Copyright © 2021 Pearson Education, Inc. 70) Spade Realty sold lots for $17 120 per hectare. What is the total sales value if the lot sizes, in hectares, were 5 3/4, 7 1/3, 5 5/8, and 4 1/6? Answer: Total size = ha = (5.75 + 7.3333333 + 5.625 + 4.1666667) ha = 22.875 ha Sales value = 17120 × 22.875 = $391620.00 Diff: 1 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 71) Heart of Gold Realty sold lots for $50 000 per hectare. What is the total sales value if the lot sizes, in hectares, were 1 3/4, 2 1/3, 3 5/8, and 4 1/6? Answer: Total size = ha = (1.75 + 2.3333333 + 3.625 + 4.1666667) ha = 11.875 ha Sales value = 50000 × 11.875 = $593 750.00 Diff: 1 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 72) A salesperson earned a commission of $926.59 for last week on gross sales of $7880. If returns and allowances were 10.5% of gross sales, what is his rate of commission based on net sales? Answer: Net sales = 0.895 × 7880.00 = 7052.60 Commission rate = = 13.14% Diff: 2 Type: SA Page Ref: 16-21 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 73) Levi earns $19.60 an hour with time and one-half for hours worked over 8 a day. His hours for a week are 9.25, 8.5, 10.5, 13.5, and 6.25. Determine his gross earnings for a week. Answer: Total hours = 9.25 + 8.5 + 10.5 + 13.5 + 6.25 = 48 Regular hours = 8 + 8 + 8 + 8 + 6.25 = 38.25 Overtime hours = 1.25 + 0.5 + 2.5 + 5.5 = 9.75 Regular pay = 38.25 × 19.60 = 749.70 Overtime pay = 9.75 × 19.60 × 1.5 = 286.65 Gross pay Diff: 2 Type: SA Page Ref: 23-29 = $1036.35 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 22 Copyright © 2021 Pearson Education, Inc. 74) A salesperson receives a weekly base salary of $800.00 on a quota of $2900. On the next $2100, she receives a commission of 14%. On any additional sales, the commission rate is 19%. Find her gross earnings for a week in which her sales total $8455. Answer: Base salary on first $2900 = $800.00 Commission on next $2100 = 0.14 × 2100 = 294.00 Commission on additional sales = () × 0.19 = 3455 × .19 = 656.45 Gross earnings = Diff: 2 Type: SA Page Ref: 16-21 $1750.45 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 75) A clothing salesperson receives a weekly base salary of $200.00 on a quota of $3 000. On the next $1000, he receives a commission of 25%. On any additional sales, the commission rate is 40%. Find her gross earnings for a week in which her sales total $6000. Answer: Base salary on first $3000 = $200.00 Commission on next $1000 = 0.25 × 1000 = 250.00 Commission on additional sales = () × 0.40 = 2000 ×. 40 = 800.00 Gross earnings = Diff: 2 Type: SA Page Ref: 23-29 $1250.00 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 76) Esther's flower shop had sales revenue of $152 000.00 for the year. If the shop's GST taxable expenses were 29 920.00. Calculate how much Colleen should remit to the government at the end of the year. Answer: GST collected = (0.05)152 000 = $7 600 GST paid = (0.05)29 920 = $1 496 GST remittance = = $6104 Diff: 2 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 77) Alicia Helm of Wawanesa, Manitoba, bought a ring for $5700. Since the jeweller is shipping the ring, Alicia must pay a shipping charge of $30.00. She must also pay PST and GST on the ring. Find the total purchase price of Alicia's ring. Answer: Total value $5730.00 GST 5% of $5730.00 $286.50 Manitoba PST 7% of 5730.00 401.10 687.60 Total purchase price $6417.60 Diff: 1 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 23 Copyright © 2021 Pearson Education, Inc. 78) Suppose you went shopping and bought bulk laundry detergent worth $11.65. You then received a $1.50 trade discount, and had to pay a $2.10 shipping charge. Find the total purchase price of the detergent in Nova Scotia. Answer: Purchase price $11.65 Less discount 1.50 Net price 10.15 Add shipping charge 2.10 Total cost before taxes 12.25 HST 15% of $12.25 1.8375 1.84 Total cost in Nova Scotia $14.09 Diff: 1 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 79) A town has a total residential assessment of 900 million dollars. The town must meet expenditures of $45 million. a) If 90% of the expenditures are charged against residential real estate, calculate then total property taxes that must be raised. b) Calculate the mill rate. c) Calculate the property tax on a property assessed at $235 000.00 Answer: a) Total Residential property tax = 0.9() = $ b) Mill rate = (1000) = 45 c) Property tax = 235000 = $10 575.00 Diff: 2 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 80) A small town has a total residential assessment of $1.1 billion. The town must meet expenditures of $300 million. a) If 80% of the expenditures are charged against residential real estate, calculate then total property taxes that must be raised. b) Calculate the mill rate. c) Calculate the property tax on a property assessed at $500 000.00 Answer: a) Total Residential property tax = 0.8() = $ b) Mill rate = (1000) = 218.18 c) Property tax = 500000 = $109 090 Diff: 2 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 24 Copyright © 2021 Pearson Education, Inc. 81) Simplify: 6 + - 4 A) 46 B) 18 C) 24 D) 4 E) 8 Answer: D Diff: 1 Type: MC Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 82) Simplify: 10 + - 5 A) 2 B) 5 C) 55 D) 7.5 E) 8 Answer: B Diff: 1 Type: MC Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 83) Calculate the final answer for the following expression: (53 + 2 2) ÷ 20 A) 5.45 B) 4.45 C) 6.45 D) 7.45 E) 9.45 Answer: C Diff: 1 Type: MC Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 84) Simplify the following: 7125 × A) 23592.74 B) 24592.74 C) 25592.74 D) 26592.74 E) 27592.74 Answer: B Diff: 1 Type: MC Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations