BUSINESS MATH EXAM QUESTIONS AND ANSWERS

BUSINESS MATH EXAM QUESTIONS
AND ANSWERS
Formula for reduced price - ANSWER-Reduced price= Original price - Markdown

Formula for percent of markdown - ANSWER-Percent of markdown = Markdown /
Original price

Formula for break-even point - ANSWER-Break-even point = Cost + Operating
expenses

Formula for operating loss - ANSWER-Operating loss = Break-even point - Reduced
selling price

Formula for absolute loss - ANSWER-Absolute loss = Cost - Reduced selling price

Formula for Average inventory - ANSWER-Add values of all inventory them divide by
number of time the inventory was taken

Formula for turnover at retail - ANSWER-Turnover at retail = Retail sales / Average
inventory

Formula for turnover at cost - ANSWER-Turnover at cost = Cost of goods sold /
Average inventory

Formula for weighted average inventory - ANSWER-Number of items x Cost per item
then add the values for each section together and divide by the amount of items
purchased

Formula for FIFO - ANSWER-Subtract remaining items by the amount sold in the last
month, multiply the number of items by price per item and then add all of the sections
together

Formula for LIFO - ANSWER-Remaining stock - (Beginning inventory + first month
inventory) = needed sales for last month then add all the sections together

Formula for value of goods at cost - ANSWER-Beginning inventory + Purchases =
Goods available for sale at cost

Formula value of goods at retail - ANSWER-Beginning inventory + Purchases - Net
sales = Goods available for sale at retail