MTH302 Business Mathematics MIDTERM current paper EXAMINATION Spring 14 MAy 2011

[Vuhelper]

uestion No: 1 ( Marks: 1 ) - Please choose one
If there is a change of -30% in the price of an item, what does the negative sign show?
► The price is decreasing.
► The price has low rate of change.
► None of the above.
► The price is increasing.


Question No: 2 ( Marks: 1 ) - Please choose one
What shall be contribution margin if sale price is Rs.50 and variable cost is
Rs.30?

► Rs.80
► Rs.20
► Rs.30
► none of these

Question No: 3 ( Marks: 1 ) - Please choose one
For multiplication of two matrices A and B
► The no. of rows of A must be equal to columns of B

► The no. of rows of B must be equal to no. columns of A

► The no. of columns of A must be equal to no. rows of B

► None of these
Question No: 4 ( Marks: 1 ) - Please choose one
A square matrix A, has an inverse if,
► ≥ 0

► ≤ 0

► ≠ 0

► = 0
Question No: 5 ( Marks: 1 ) - Please choose one
Interest paid (earned) on only the original principal borrowed (lent) is often referred to as
► simple interest
► present value
► future value
► compound interest
Question No: 6 ( Marks: 1 ) - Please choose one



The value of x for the equation -(-x - 5) = x – 2 is ------------------

► -7/2

► -5

► 3

► 1 / 2

Question No: 7 ( Marks: 1 ) - Please choose one
Sum of annuity is always

► Present value

► Future value

► Net present value

► Current value


Question No: 8 ( Marks: 1 ) - Please choose one
In annuity interest is charged by the:
► Simple interest method

► Compound interest method
► Both simple and compound interest method

► Accumulated method

Question No: 9 ( Marks: 1 ) - Please choose one


If 5x =7t, then the ratio x: t = …..

► 5:7

► 7:5

► 15:7

► 5:17
Question No: 10 ( Marks: 1 ) - Please choose one


What shall be contribution margin if sale price is Rs.50 and variable cost is
Rs.30?


► Rs.80

► Rs.20

► Rs.30

► none of these

Question No: 11 ( Marks: 1 ) - Please choose one
Division. Symbol: / is a type of
► Comparison operators

► Concatenation operator

► Reference operators

► Arithmetic operators



Question No: 21 ( Marks: 2 )

The price of a sandwich maker is Rs 2000. The company offers a 25% trade discount. Find trade discount amount.

Solution

Sandwich Price Rs.2, 000
Trade Discount Rate 25%
Trade Discount Amount =2,000*25/100

=Rs.500/

Question No: 24 ( Marks: 2 )

A company sells its item at Rs. 125 per unit. If the variable cost is Rs 80, find the contribution rate.

Solution

Sale Price per unit Rs.125
Variable Cost Rs.80
Contribution margin =S-VC
=125-80
=Rs.45
Contribution Rate =CM/S*100
=45/125*100

=36%
Question
explain cost price analysis 5 marks