Practical Business Math Procedures Chapter 7 Challenge Problems and Summary Practice Set

Satisfactory Essays
Challenge Problems
7-49
I. Given
a) Honda Insight Original Price $17,995.00
b) Honda Insight Dealer Price $16,495.00
c) Terms: 1/15 n/30
II. Unknown
a. How much is the rebate?
b. What percent is the rebate?
c. What is the amount of the discount if the dealer pays within 15 days?
d. What is the dealer’s final price?
e. What is the dealer’s total savings?
III. Equation
a. Rebate = Original Price – Dealer Price
b. % Rebate = (Rebate / Original Price) x 100%
IV. Solving and Solution
a. Rebate = Original Price – Dealer Price
= $17995.00 – $16495.00
= $1,500.00 rebate

b. % Rebate = (Rebate / Original Price) x 100%
= ($1500.00 / $174995.00) x 100%
= 8.34% rebate

c. 15day discount = Dealer Price x Discount
= $16495.00 x 1%
= $164.95 15day discount

d. Final Price = Dealer Price – Discount
= $16495.00 – [$16495.00 x (1%)]
= $16495.00 – $164.95
= $16330.05 final dealer price

e. Total Savings = Rebate + 15day discount
= ($1500.00 rebate) + ($164.95 15day discount)
= $1,664.95 total savings

7-50
V. Given
d) Invoice dated March 28 received March 30
e) 50 TV x $125.00
f) 10/4/2 chain discount
g) FOB shipping point = $70
h) 2/10 EOM (April)
i) 3 defective items (50 – 3 = 47)
j) April 8  $150.00 partial payment
k) Payment of full on May 6
VI. Unknown
a. Final Payment on May 6 w/o taxes
VII. Equation
a. (50 TV units less 3 defective) x $125.00 each = $5,875.00

b. Chain discount = 10/4/2
= (1.00 – 0.10) x (1.00 – 0.04) x (1.00 – 0.02)
= 0.90 x 0.96 x 0.98
= 0.847
= 1.00 - 0.847 = 0.153 ~ 15.33%
= $5875 x 15.33% discount
= $900.52 Chain discount

c. FOB Shipping Point = additional $70 to payment
d.
e. $150 partial payment to 2/10 EOM
= 100% - 2% = .98
 $150 = $153.06 credited to amount
.98

VIII. Solving
 Total Amount = $ 5875.00 Less: Chain Discount = $ 900.52 Add: FOB Shipping Point = $ 70.00 Less: Partial Payment Credit = $ 153.06
Payment Due on May

You May Also Find These Documents Helpful

  • Powerful Essays

    Complete the following Practical Practice Problems in Chapter 3 of your textbook: * 3-1A, 3-8A, 3-9A * 3-12A, 3-15A, 3-16A 3-1A The biweekly taxable wages for the employees of Rite-Shop follow. FICA Taxes Employee No. | Employee Name | Biweekly taxable wages | OASSDI | HI | 711 | Castro, Manny | $493.28 | 30.58 | 7.15 | 512 | Corrales, Pat | 870.00 | 53.94 | 12.62 | 624 | Guitar, Joseph | 419.80 | 26.03 | 6.09 | 325 | Moore, Connie | 523.20 | 32.44 | 7…

    • 778 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Week 7 Problem Set

    • 473 Words
    • 2 Pages

    Week 7 Problem Set Chapter 26 (page 903): 1. Answer the following questions: a. What is the difference between a firm’s cash cycle and its operating cycle? b. How will a firm’s cash cycle be affected if a firm increases its inventory, all else being equal? c. How will a firm’s cash cycle be affected if a firm begins to take the discounts offered by its suppliers, all else being equal? 4. The Greek Connection had sales of $32 million in 2012, and a cost of goods sold of $20 million. A simplified…

    • 473 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Problem Set Chapter 3

    • 899 Words
    • 4 Pages

    Problem Set #3: Edited Version Page 100 – Problems and Applications 1. The three functions of money are medium of exchange, unit of account, and store of value. Medium of exchange refers to money being accepted as everyday currency, that you can go into a store and be confident in the fact that they will accept your money for goods and services. Store of value is defined as the ability of money to retain its value of time; in other words, $100 today will be $100 tomorrow, next month or 6…

    • 899 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Business Math Unit 7

    • 1119 Words
    • 5 Pages

    Your Instructor Graded Assignment You must show your work on all problems. You may type your answer right into this document. Total points for project: 45 points. Projects must be submitted as a Microsoft Word document and uploaded to the Dropbox for Unit 7. All Projects are due by Tuesday at 11:59 PM ET of the assigned Unit. NOTE: Project problems should not be posted to the Discussion threads. Questions on the project problems should be addressed to the instructor by sending an email or by attending…

    • 1119 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    ACTUAL PRACTICE & PROBLEMS OF AUDIT PROCEDURE REPORT ON: AMTRANET GROUP UNDER SUPERVATION: Shah Ridwan Chowdhury Lecturer, Dept. of Management Studies. Jagannath University, Dhaka. PREPARED BY: Group Name: Knowledge Fighter. Section-A, B.B.A (3rd Batch) Department of Management Jagannath…

    • 4807 Words
    • 20 Pages
    Powerful Essays
  • Good Essays

    booklet 2003 Name Score Level and grade 6 8 Desi Ella 2 Practice question a 1 b 3 2 c 3 kilograms metres hours centimetres litres d Ella is 97 tall. 4 4 months e 5 23 16 f 5 Practice question How many birds are there? birds 6 6 One marble fits in each space in the box. Tick (#) the box which can hold 18 marbles. 7 7 One shape has 2 long sides and 2 short sides. Tick (#) it. 8 8 Write…

    • 463 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Chapter 12 Problem Set a

    • 646 Words
    • 3 Pages

    Module 3 – Chapter 12 Problem 12-1A Part 1 KAZAAM COMPANY Statement of Cash Flows For Year Ended December 31, 2011 Cash flows from operating activities Net income $73,750 Adjustments to reconcile net income to net cash provided by operating activities Increase in accounts receivable ($49,625 - $65,000) (15,375) Increase in inventory ($252,500 - $273,750) (21,250) Decrease in prepaid expenses ($6,250 - $5,375) 875 Decrease in…

    • 646 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Assignment Problem Set includes overview of these exercises: C: 9-35 Allocation of Precontribution Gain Solution C: 11-45 Use of Losses by Shareholders Solution C: 10-4 Discussion C:11-47 Problem Post-Termination Loss Use Solution Business - Accounting Complete the problems found in Ch. 9, 10, 11 of Federal Taxation 2010: Corporations with your Learning Team . C:9-32 Problem – Partnership Income and Basis Adjustments (Ch. 9) C:11-37 Problem – Determination…

    • 456 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    BIOAP 458, 2012 Name: _______________________ Raw Score: ________/ 102, ________% PROBLEM SET 7 Cardiac Electrophysiology 1) (8 pts.) Match the most appropriate pairs _F__ AV node (atrioventricular node) _E__ gap junctions _G__ action potential generated by ventricular myocytes _H__ functions as the pacemaker of the whole heart _D__ calcium _C__ Bachmann’s bundle _A__ Bundle of His _B__ action potential generated by pacemakers Prof. Beyenbach VRT 8014 A. ventricular conduction system that distributes…

    • 834 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Problem Set

    • 438 Words
    • 2 Pages

    Math – 213 Problem Set Solve each of the following problems. 1. A coin is tossed four times. What is the probability that at least 2 heads will occur? 2. A pair of dice is rolled. What is the probability that the sum is equal to the following? a. 5 b. 10 c. at most 9 d. at least 8 3. A chip is drawn at random from a jar containing 8 red, 2 blue, 3 green, 4 yellow, and 3 white chips. Determine the probability that it is: a. Red b. Yellow or red c. Not orange 4. In a graduating class of 300 students…

    • 438 Words
    • 2 Pages
    Satisfactory Essays