Business Mathematics Questions And Solution

Business Mathematics Questions Are Getting more popular with every passing year. The following are top Business maths Questions. Which of them can you solve?

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1. In December 12th 2007, Mohammed bought 300 units of Afrococo Corporation shares @ $55 per share. On Dec 10th 2008, Mohammed sold all his shares for $60 per share. What is Mohammed’s percentage realised gain? 2. The cost price of 50 mangoes is equal to the selling price of 40 mangoes. What is the percentage profit

SOLUTION

60/55=1.0909

1.0909-1=.0909 or 9.1%

2. Last year, Matthew bought two cars. This year, he sold both the cars for $45,000 each. On one, he earned 20% profit, and on the other, he made a 20% loss. What was his net profit or loss?

SOLUTION

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3. Guide: The question given below is based on the table. Read the table carefully and answer the question that follows. The table below shows some cost components of 3 products of a startup.

Directors of the startup company are meeting to decide wholesale pricing for the 3 products. Directors have decided 2 keystone and the following options are on the table for the directors;
A: The wholesale price should be the sum of all direct and indirect costs
B: The wholesale price for each product should be at least twice the cost of labour and material
C: The wholesale price should be at least the total sum of twice the value of each cost component.

3. A committee of 3 members for the education board is to be selected from a pool of 6 prospective candidates ”“ A, B, C, D, E, and F. Candidates A, B and C are male and the rest are females. At least, one of the selected candidates should have a minimum of 10 years cognate experience in the education sector. The committee should have at least one male and a female candidate. Each of the committee members should have studied a different course for bachelor’s degree.

A. Committee A: Comprises D, E and F as its members. D is a doctor; E is a zoologist and F is an engineer. F has been teaching at a high school for the last 10 years.
B. Committee B: Comprises A, B and F as its members. A is an architect; B is a botanist and F is an engineer. A has the highest work experience among the three selected members. Both B and F are serving in the educational sector for the last 12 years.
C. Committee C: Comprises B, D and E as its members. Each of them has served as a teacher in school for the last 15 years. B and D are alumni of XL University. E is a botanist.
D. Committee D: Comprises B, C and E as its members. Each of them has served as a teacher in school for different number of years. B is a zoologist, C is an engineer and E is a botanist.

4. Guide: The question given below is based on the table. Read the table carefully and answer the question that follows. The table below shows some cost components of 3 products of a startup.

Peter plans to be a retailer of product Y of the above startup company. Assuming Peter uses 2 keystones, what would be Peter’s MSRP for the product?

A. 1900 B. 3000 C. 4000 D. 3800 E. 5000

5. In Nairobi, Brenda just got the 2019 TEF grant of $5,000. Her business is in the idea stage but has the potential of earning a monthly revenue of $500 from the 7th month and up to $750 monthly from the 12th month according to her business plan. However, by the time she got the grant, her cousin Tim who is into AirBnB business and has made over 100% of his investment in 2years is trying to convince her to do the AirBnB business with the TEF grant instead. She has come to meet you for advice, what would you recommend to her?

6. In Uganda, Susan invested UGX300,000 in the shares of a company X and UGX550,000 in the shares of a company Y. After a year, she sold all the shares of both companies for UGX400,000 and UGX700,000 respectively. What is her profit from company X?

SOLUTION

Company X: 400,000/300,000 =1.3333 (.3333 repeating) or a 33% increase (profit). 300,000*1.333 = 399,990 or 400,000! We double checked the figures.

Company Y: 700,000/550,000 = 1.2727 (.2727 repeating) or a 27% increase (profit). 550,000*1.2727 = 699,985 or 700,000! And we double checked the figures.

Profit for company X is 0.33% which is UGX100,000.

7. The question given below provides a situation and asks you to make a judgment on the basis of the information given.

Company X has a team of A, B, C, D, E and F among other staff members. A team of 4 members needs to be selected for a client meeting from the listed names. ”˜A’ is the marketing head of the organization, who plans and charts out the marketing strategies for the company. ”˜B’ is the sales executive, who has been in constant contact with the client regarding the requirements. ”˜C’ is the CFO of the organization. ”˜D’ is the sales manager and a direct supervisor of ”˜B’, who was also present in the previous conversations with the client. ”˜E’ is the content lead, who has to design the product as per the client’s needs. ”˜F’ is one of the content team members of ”˜E’.

The meeting is with the CEO of the prospective client. Select the team which should go to the meeting.
Selection 1: A team with A,B,C and D
Selection 2: A team with A,C,E and F
Selection 3: A team with A,B,D and ESelection 4: A team with B, C,E and F

8. Musa ships cars into Ghana, Nigeria and Benin republic from the United States of America. The import duty costs are 10%, 25% and 12% respectively for used cars from the three countries and 25%, 40% and 20% for new cars.

Assuming VAT is the same in all three countries and Musa plans to buy a new car lot worth $100,000 in three months for his business expansion. His current car lot capacity in each country is 50 cars, but he has a credit facility in the USA that allows him to ship as many cars as he wants. Musa has the following options as a strategy to meet his planned target.

A: Import more luxury cars with a huge markup
B: Give discounts such that guarantees sale of at least 10 cars every week.
C: Ship 100 cars for the two months, lease space from his friends at a cost and maintain the standard mark

9. Musa ships cars into Ghana, Nigeria and Benin republic from the United States of America. The import duty costs are 10%, 25% and 12% respectively for used cars from the three countries and 25%, 40% and 20% for new cars.

10. He has landed a used Benz C300 and a new Toyota Highlander for $12,000 and $30,000 respectively. For how much should he markup the cars, if he desires to make a minimum profit of 15% after giving a discount of 10% to a reseller in Abuja, Nigeria?

A. $15,000 and 39,000
B. $15,600 and 39,000
C. $24,000 and 60,000
D. $15,000 and 37,500
E. $17,500 and $42,500

11. John is the owner of a company that specializes in the manufacturing of office computers and printers. He recently received a large order from a company for 30 computers and 5 printers. In addition, the company tasked John with installing software into each of the computers.

The cost per computer is $500 and the cost per printer is $100. The cost of installing the software to run on all the computers is $2,000. If John wants to earn a 20% profit for the order, what would be the price he needs to charge?

Solution

Markup Percentage = (selling price – cost price)/cost price

Step 1: Calculate the total cost of the order (computers + printers + installation of software). $500 x 30 + $100 x 5 + $2,000 = $17,500 (total cost).

Step 2: Determine the selling price by using the desired percentage of 20%. 20% = (Selling Price ”“ $17,500) / $17,500  therefore Selling price must be: $21,000 (selling price).

Therefore, for John to achieve the desired markup percentage of 20%, John would need to charge the company $21,000.

12. An investor purchased 1000 shares of ABC company at $12 per share. When the company was $25, the company issued a five for one split. She subsequently sold 1000 shares at $10. Her profit on this transaction would be how much?

SOLUTION

1. 1,000 shares in ABC bought at $12 a share will cost you $12,000 ($12 x 1,000)
2. If the price per share increases to $25 your holding is now worth $25 x 1,000 = $25,000
3. Now we apply the corporate action. Assuming, reasonably, that the stock split neither creates nor destroys value you will now hold 5,000 shares in ABC2 worth $5 each with a total value of $25,000 still.
4. You then sell 1,000 shares in ABC2 at $10 a share. This will realise $10,000. This is the equivalent of having sold 200 shares in ABC (pre-split). As the pre-split share price was $12 a share that 200 shares cost you $2,400 ($12 x 200).
5. Thus the profit realised on the sale of 1,000 shares will be: sold amount – initial cost = $10,000 – $2,400 = $7,600.