Contemporary Mathematics for Business and Consumers, Third Edition

Robert A. Brechner
Copyright © 2003 Thomson/South-Western

Level 1
Chapter 6 - Section II - Exercise 35

If Alton Amidon, a real estate agent, earned 6 1/2% commission on the sale of property
valued at $210,000, how much was Alton's commission?

Commission rate = 6.5%

Property value = $210,000.00

Commission earned = $13,650.00

Contemporary Mathematics for Business and Consumers, Third Edition
Robert A. Brechner
Copyright © 2003 Thomson/South-Western

Level 2
Chapter 6 - Section II - Exercise 38

Friendly Ford advertised a down payment of $1,200 on a Mustang valued at $14,700.

What is the percent of the down payment? ( Round to nearest tenth percent.)

Down payment = $1,200.00

Automobile value = $14,700.00

Down payment percent =

8%
Contemporary Mathematics for Business and Consumers, Third Edition
Robert A. Brechner
Copyright © 2003 Thomson/South-Western

Level 3
Chapter 6 - Section II - Exercise 41

The Parker Company employs 68 part-time workers. If this represents 4% of the

total work force, how many individuals work for the company?

Ans. 1700
Contemporary Mathematics for Business and Consumers, Third Edition
Robert A. Brechner
Copyright © 2003 Thomson/South-Western

Level 2
Chapter 6 - Section III - Exercise 13

At a Sports Authority store 850 tennis rackets were sold last season.
a. If business is predicted to be 30% higher this season, how many rackets should
be ordered from the distributor?

Predicted percent increase = 30%

Rackets sold last season = 850

Number of rackets to order = 1105

b. If racket sales break down into 40% graphite and 60% wood, how many of each
type should be ordered?

Percent graphite = 40%

Number of graphite rackets to order = 442

Number of wood rackets tor order = 663

Contemporary Mathematics for Business and Consumers, Third Edition
Robert A. Brechner
Copyright © 2003 Thomson/South-Western

Level 3
Chapter 6 - Assessment Test - Exercise 44

Eddie Dawson, an ice cream vendor, pays $17.50 for a 5 - gallon container of premium
ice cream. From this quantity, he sells 80 scoops at $.90 per scoop. If he sold smaller
scoops, he could sell 98 scoops from the same container; however, he could only charge
$.80 per scoop. As his accountant, you are asked the following questions:

a. If he switches to the smaller scoops, by how much will his profit per container go up
or down? (Profit = Sales - Expenses.)

Large Small Increase

Revenue 72 78.4 6.4
Cost 17.5 17.5 0
Profit 54.5 60.9 6.4

b. By what percent will the profit change?

Large 54.5
Small 60.9
% 12%
Contemporary Mathematics for Business and Consumers, Third Edition
Robert A. Brechner
Copyright © 2003 Thomson/South-Western

Level 2
Chapter 6 - Assessment Test - Exercise 49

You are the owner of a chain of three successful restaurants with the following number of seats
in each location: airport, 340 seats; downtown, 218 seats; and suburban, 164 seats.

a. If the liability insurance premium is $16,000 per year, how much of that premium should
be allocated to each of the restaurants, based on percent of total seating capacity?

Note: First find the percent allocation to each location. Round these percents to the nearest
tenth. (Use Excel's Round function. Round the decimal result to 3 places in order to round
the percent to the the nearest tenth.) Use these rounded percents in your final calculations.

Excel Extra: After completing your calculations, use Excel's Chart Wizard to create a pie chart to
show the percent allocated to each category.

Total insurance premium =

Number of seats Percent of total Premium allocation

Airport = 340 47.1% $7,534.63

Downtown = 218 30.2% $4,831.02

Suburban = 164 22.7% $3,634.35

Total = 722 1 16,000

I

b. If the restaurant chain opens a fourth location at the beach, with 150 seats,
and the total insurance premium increases by 17%, what is the new allocation
of insurance premiums among the four locations?

Excel Extra: After completing your calculations, use Excel's Chart Wizard to create a pie chart to
show the percent allocated to each category.

Percent increase in premium = 17%

New insurance premium = $18,720.00

Number of seats Percent of total Premium allocation

Airport = 340 39.0% $7,299.08

Downtown = 218 25.0% $4,680.00

Suburban = 164 18.8% $3,520.73

Beach = 150 17.2% $3,220.18

Total = 872 1 18,720

Airport 47%
Downtown 30%
Suburban 23%

Insurance premium allocation

Ai rport Downtown Suburban

Airport 39.0%
Downtown 25.0%
Suburban 18.8%
Baech 17.2%

Ai rport Downtown Suburban Ba ech Chart Title