Business Calculations Review

Sarah owns a small bakery and wants to calculate her Customer Acquisition Cost (CAC). Last month, she spent $3,000 on social media ads and $2,000 on influencer partnerships. She gained 250 new customers from these efforts. What is her CAC?

• $10

• $20

• $15

• $25

Carlos runs a mobile car detailing service. His business has $40,000 in assets and $18,000 in liabilities. What is Carlos’s equity?

• $58,000

• $22,000

• $40,000

• $18,000

Lisa owns a handmade candle shop. If the cost to make one candle is $5 and she wants a 60% profit margin, what is her selling price?

• $8

• $10

• $12

• $15

Jake’s Lawn Care Service had a busy season. His total income was $50,000, but he spent $20,000 on equipment and materials (COGS) and $15,000 on operating expenses. What is Jake’s net income?

• $15,000

• $15,000

• $25,000

• $30,000

Mia runs an online boutique selling clothing. She made $60,000 in gross profit, but after paying $18,000 in expenses, what is her net income?

• $42,000

• $32,000

• $60,000

• $78,000

Sam’s Coffee Shop is figuring out its income tax expense. His business had a gross profit of $90,000, and his tax rate is 30%. How much will he owe in income taxes?

• $18,000

• $27,000

• $30,000

• $45,000

Erin’s Custom Jewelry Business has monthly costs of $6,500, and she sells her handmade necklaces for $50 each. How many necklaces does she need to sell to break even?

• 100

• 130

• 150

• 200

If a business owner spends more on acquiring customers than the revenue those customers generate, the business is losing money.

• True

• False

A business with low Customer Retention Rate (CRR) likely struggles to keep customers coming back.

• True

• False

If a company’s selling price is lower than its cost to make a product, the company is still profitable.

• True

• False