ASSIGNMENT 2 (TOTAL 30 MARKS)
1. If one Canadian dollar is equivalent to US$0.8150, how much do you
need in Canadian funds to buy US$800.00? (2 marks)
2. A bicycle was sold for $282.50. The selling price included 13%
harmonized sales tax. Find the amount of HST on the bike. (2 marks)
3. A microwave oven originally advertised at $220 is reduced to $209
during a sale. By what percent was the price reduced? (2 marks)
4. J.B. earns $16.60 an hour with time-and-a-half for hours worked over 8
a day. His hours for a week are 8.25, 8.25, 9.5, 11.5, and 7.25.
Determine his gross earnings for that week. (2 marks)
5. Mahal of Winnipeg, Manitoba, bought a ring for $6400. Since the
jeweller is shipping the ring, she must pay a shipping charge of $20.
She must also pay GST (5%) and PST (8%) on the ring. Determine the
total purchase price of Mahal’s ring. (2 marks)
6. The Superior Jumpdrive Company sells jump drives for $10 each.
Manufacturing cost is $2.60 per jump drive; marketing costs are $2.40
per jump drive; and royalty payments are 20% of the selling price. The
fixed cost of preparing the jump drive is $18 000. Capacity is 15 000
jump drives.
a. Compute
i. the contribution margin; (2 marks)
ii. the contribution rate. (2 marks)
b. Compute the break-even point
i. in units; (2 marks)
ii. in dollars; (2 marks)
iii. as a percent of capacity. (2 marks)
c. Draw a detailed break-even chart. (2 marks)
d. Determine the break-even point in units if fixed costs are
increased by $1600, while manufacturing cost is reduced by
$0.50 per jump drive. (2 marks)
