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FREE CFAT Practice Test (Canadian Forces Aptitude Test):
https://www.army-test.com/131.html
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1. An Ontario real estate agent received a $44,670 commission for selling a single detached home. His commission was 3% of the selling price. Calculate the selling price of the home.
A. $1,489,000
B. $1,498,000
C. $1,849,000
D. $1,894,000
Answer: A
Solution:
Let
S = selling price of the home
c = commission
r = commission rate
c = S * r
Given:
c = $44,670
r = 3%
substituting the given into the formula,
c = S * r
44,670 = S * 3%
44,670 = S * 0.03
S = 44,670/0.03
S = $1,489,000
2. A motorcycle parts retailer's monthly total purchase on parts is $210,000. Monthly transportation costs are $3,000. Utilities costs $600 per month. Employee payroll costs are $17,000 monthly. Loan payments are $5,000 a month. Monthly rent is $6,000. Insurance cost is $500 a month. Maintenance cost and reserve fund expense is $3,000 per month. If the store owner's monthly sales revenue is $320,400, what is his monthly profit margin before taxes?
a. 25.3%
b. 23.5% --- answer
c. 32.5%
d. 24.3%
Solution:
step 1:
calculate total monthly expenses
Total monthly expenses
= 210,000 +
3,000 +
600 +
17,000 +
5,000 +
6,000 +
500 +
3,000
--------------------------
$245,100
step 2:
calculate net income (profit) before taxes
= Total monthly sales revenue minus Total monthly expenses
Net income (profit) before taxes
= 320,400 - 245,100
= $75,300
step 3:
calculate net profit margin before taxes
= (Net income before taxes
divided by Total monthly sales revenue) x 100%
= (75,300/320,400)
x 100%
= 23.5%
***
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FREE CFAT Practice Test (Canadian Forces Aptitude Test):
https://www.army-test.com/131.html
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