Finance Math: Test 2 Review_V1

To break-even (no profit or loss), TOTAL COST must equal TOTAL _______ .

Boom Boom Pow sells their electrolyte drink for $4.99 each. The variable cost per drink is $1.20.

The store has fixed costs of $3,400 per month and estimates their capacity is 3,000 units per month.

What is break-even in volume (units)?

• 897 units

• 898 units

• 7,970 units

• 7,971 units

Boom Boom Pow sells their electrolyte drink for $4.99 each. The variable cost per drink is $1.20.

The store has fixed costs of $3,400 per month and estimates their capacity is 3,000 units per month.

What is the profit or loss if the store produces and sells 60% of their capacity?

• Profit of $3,422

• Loss of $3,422

• Profit of $1,372.03

• Profit of $1,372.03

Boom Boom Pow sells their electrolyte drink for $4.99 each. The variable cost per drink is $1.20.

The store has fixed costs of $3,400 per month and estimates their capacity is 3,000 units per month.

How many drinks would they need to sell to have a profit of $8,000? Is this within the business' production capabilities?

• 3,007 units

  Absolutely! Let's do it.

• 3,008 units

  Absolutely! Let's do it.

• 3,007 units

  No way! We'll explode.

• 3,008 units

  No way! We'll explode.

How many days are there between April 4th, 2021 and August 20th, 2023?

• 1,233 days

• 138 days

• 503 days

• 868 days

How many days will it take for $600 to accumulate to $700, if interest is 7.5% p.a.?

• 221 days

• 222 days

• 812 days

• 811 days

Select the correct formula for the scenario below.

An amount of $21,400 is due 26 months from now. If the interest rate on the loan is 10% p.a., what amount was borrowed?

The "face value" of a promissory note is the value of the note at the date of maturity.

• TRUE

• FALSE

The "face value" of a T-bill is the value of the bill at the date of maturity.

• TRUE

• FALSE