ESB Domain #4 - QUIZ

What is the formula for calculating the selling price?

• Cost price + Markup

• Cost price - Markup

• Cost price / Markup

• Cost price x Markup

What is the formula for calculating gross profit?

• Selling price - Cost price

• Selling price / Cost price

• Selling price + Cost price

• Selling price x Cost price

Which of the following is an example of a fixed expense?

• Sales commission

• Raw materials

• Utilities

• Rent

What is the formula for calculating income tax expense?

• Gross profit x Tax rate

• Total revenue x Tax rate

• Operating expenses x Tax rate

• Net profit x Tax rate

What is the formula for calculating return on investment?

• (Total revenue / Investment) x 100

• (Operating expenses / Investment) x 100

• (Gross profit / Investment) x 100

• (Net profit / Investment) x 100

What is the formula for calculating net profit?

• Gross profit - Expenses

• Gross profit + Expenses

• Gross profit / Expenses

• Gross profit x Expenses

Which of the following is an example of a variable expense?

• Rent

• Insurance

• Utilities

• Raw materials

What is the formula for calculating break-even point?

• Selling price - Variable cost per unit

• Fixed costs x (Selling price - Variable cost per unit)

• Gross Profit - Cost of Goods Sold

• Total Monthly Costs / Selling Price

What is the formula for calculating operating profit?

• Gross profit - Operating expenses

• Gross profit + Operating expenses

• Gross profit / Operating expenses

• Gross profit x Operating expenses

You are manufacturing bikes and want to know what you should sell them at. The cost of manufacturing the bike is $65 and the desired profit margin is 15%. What is the selling price?

• $75.00

• $74.75

• $9.75

• $65.00