Business Plan Math - Math Quiz

Production space in a building costs $22 per sq ft per year. You are looking at leasing a space that is 345 ft x 123 ft. What will your annual lease cost be?

• $34,875

• $532,456

• $933,570

• $987,324

You plan to lease a building for your business. The building owner wants first month's rent, last month's rent, and a security deposit of one month's rent -- all due at the lease signing. If R represents one month's rent, which formula shows the amount you will need at the lease signing?

• R

• 2R

• R + 3

• 3R

You have a part with material cost of $20 per unit. You can buy a new machine that will cut material waste in half (make twice as many units from the same material). The machine costs $1,000. How many units do you have to make to recover the cost of the machine?

• 50

• 100

• 150

• 200

Business leases are often "triple net." This is sometimes written as NNN. It means the lease cost shown does not include property taxes, building insurance and common area maintenance. These must be paid by you separately. If the listed lease for a building is "$4,000 per month NNN" and taxes, insurance and maintenance come to $2,300 per month. What will your total monthly cost be?

• $2,300

• $4,000

• $6,300

• $7,000

Your business plan calls for the following monthly cash flows: -$700, -$500,-$300,+$200,+$400 as the business gets going. You start with $5,000 in cash. What is your lowest planned cash balance as you get the business off the ground?

• $700

• $3,500

• $5,000

• $5,700

You have leased production space that is 275 ft x 200 ft. The property owner charges $5 per square foot to calculate the annual cost. How much is the annual cost?

• $1,375

• $55,000

• $275,000

• $460,000

You plan on spending $10,000 on a Billboard. The Billboard is on a highway that has 1,000 cars pass it each day. If you assume there are an average of two people in each car, and .5% of all people that pass the billboard will buy your product selling for $30, how much sales can you estimate from the Billboard in one year?

• $150

• $300

• $54,750

• $109,500

You plan on spending $10,000 on a Billboard. The Billboard is on a highway that has 1,000 cars pass it each day. If you assume there are an average of two people in each car, and .5% of all people that pass the billboard will buy your product selling for $30, how much sales can you estimate from the Billboard in one year?

• $17,500

• $100,000

• $250,000

• $350,000

If all anticipated costs added up to $100,000 for your start up business, and you estimated sales to be $125,000, what would be your net income?

• $25,000

• $100,000

• $125,000

• $225,000

If you estimate sales to be $40,000 in the first year of business and plan on a 4% increase in sales for year two and year three. What would the total sales figure be for year three?

• $41,600

• $43,264

• $56,000

• $78,400