1.Radical Tech sells processing chips for $15 each. Manufacturing cost is $2.15 per unit; marketing costs are $3.40 per jump drive; and royalty payments are 15% of the selling price. The fixed cost of preparing the jump drive is $20,000. Capacity is 25,000 units.

a) i. Compute the contribution margin.

ii. the contribution rate.

b) Compute the break -even point.

i) in units

ii) in dollars.

iii. as a percent of capacity.

c) Determine the break-even point in units if fixed costs are increased by $2,600, while manufacturing cost is reduced by $0.75 per jump drive.

d. Determine the break-even point in units if the selling price is increased by 15%, while fixed costs are increased by $3,900.

2. Tony purchased some corporate gifts for an upcoming industry conference. His total spend was $8,500. Unfortunately, he lost his receipt. The applicable GST is 5%, PST is 7% and there was a $30 shipping charge. He now needs to determine the following:

a. Total GST paid

b. Total PST made.

c. Purchase price before tax & shipping charges.

3.A dealer bought personal computers for $1,250 less 25 %, and 15%. They were sold for $1,100.

a. What was the markup as a percent of cost? b. What was the markup as a percent of selling price?

4. James' income was $67,000 in 2010, $72,000 in 2014, and $78,000 in 2017. The Canadian CPI was 118.7 in 2014 and 122.6 in 2017. The CPI base year is 2010.

a. Determine James' real income in 2014 and 2017.

b. Should James be happy about his increases in salary from 2010 to 2017? Explain your results

5. On September 13, 2019, Red Flag Inn invested $ 35,000 in a short-term investment that matures on June 22, 2020. An investment of this length earns 3.3 % p.a. How much will the investment be worth at maturity (i.e., What is the Future Value of the investment)?

6. Compute the value of an investment 10 months before the maturity date that earns interest at 12 % p.a. and has a maturity value of $1,500.

7. Given a principal of $35,000 today and an interest rate of 6 % p.a. Compute the following Future and Present Values,

Time from today	Value
5 months in the future
9 months in the future
1 year in the future
214 days in the future
4 months prior to today
75 days prior to today

8. You are owed payments of $1,400 due today, $1,500 due in 6 months, and $2,250 due in one year . You have been approached to accept a single payment 10 months from now with interest allowed at 13 % p.a. How much will the single payment be?

9. An original payment of $3,500 due today is replaced by two equal payments (call them x) due in 3 and 9 months from now. The interest rate is 12% p.a. Find the replacement payments.

10. A loan for $7,500 with interest at 6.25% compounded semi-annually is repaid after 6 years, 8 months. What is the amount of interest paid

11. Find the principal that will amount to $15,000 in 8 years at 7% p.a. compounded quarterly.

12. In how many years will $2,500 grow to $ 3000 if money can earn 6% compounded quarterly?

13. Find the nominal rate of interest compounded semi - annually if $ 4,500 accumulates to $ 7,500 in 6 years.