4.10AB Personal Financial Literacy

Ms. Mays buys and sells used clothes. Ms. Mays bought a dress, a sweater, and shorts for a total of $12.00. She then sold each item for the price below:

Dress sold for $20.75

Sweater sold for $15.25

Shorts sold for $8.50

What was Ms. Mays total profit for selling the clothes?

• $12.00

• $56.50

• $32.50

• $44.50

Answer explanation

First find the earnings by adding the cost of each clothing piece:

$20.75

$15.25

$8.50

Notice 0.75 and 0.25 make a whole dollar.

Then subtract the $12 expense

Nicolas sold snacks at a sports event. The cost of preparing the snacks was $10.29. The money he received from the sale of the snacks was $21.75.

What was Nicolas profit?

• $32.04

• $21.75

• $10.29

• $11.46

Answer explanation

This calculation starts in the HUNDRETHS place...after regrouping, you will know that the correct answer has to have a 6 in the hundredths.

Shannyn bought an old table. She repaired it and painted it so that it looked new. Then she sold the table. Shannyn made this list about what she did

Price of old table $10

Cost to repair $5.00

Cost to paint $7.50

Selling price $50.00

What was Shannyn's profit from selling the table?

• $27.50

• $62.60

• $50.00

• $72.50

Answer explanation

Notice that $10 should be written as $10.00 for calculations.

Macaiden sold pens decorated with fancy tape.

Macaiden's expenses were $11.57 for supplies

Macaiden sold 12 pens for $2 each

What was Macaiden's profit?

• $24.00

• $35.57

• $12.43

• $2.43

Answer explanation

When calculating profit there is alway expenses.

Some people borrow money to buy cars. They have to make car payment to pay back the money they borrowed. What kind of expenses are most car payments?

• Variable, because the amount usually changes every month.

• Variable, because the payment is not due every month.

• Fixed, because the amount is usually the same every month.

• Fixed, because the car is usually paid for after one month.

Answer explanation

Variable = Changes

Fixed = Same

Based on the table, which statement is true about the amounts Sheldon and Jenna paid for electricity during the six months?

• Only Sheldon's electricity expense was a fixed expense.

• Only Jennas's electricity expense was a fixed expense.

• Both Sheldon's and Jenna's electricity expenses were variable expenses.

• Both Sheldon's and Jenna's electricity expenses were fixed expenses.

Answer explanation

There are electricity bills that allow for the same monthly bill. Usually the average is calculated and then split over a period of time. However, that option is rare.

According to the table, which expenses were fixed expenses for Mrs. Landers during the three months?

• Groceries, gasoline, and utilities only

• Rent and car payment only

• None of the expenses

• All of the expenses

Answer explanation

It is important to budget expenses, specially when dealing with Variable expenses

Andy sold ice cream cones during Saturday school. Andy spent $6 buying cones and $24 buying ice cream gallons. Andy sold each ice cream cone for $2. How many ice cream cones did Andy sell if his profit was $10?

• $64.00

• $2.00

• 20 ice cream cones

• 5 ice cream cones