Magwali Emmanuel

Grade 12 Humss C

Activity 1 Forecasting Method

1. If the cost of a fan is 550.00 and sold at 790. Find the gross profit?

Gross profit = sales - cost of goods old

2. If the cost of a toy is 670 and sold at 1000. Find the gross profit?

Gross profit = sales - cost of goods old

3. Adam’s art gallery bought a photograph at the wholesale price of 250. Adam marked the price up 40%. Find the
amount of mark-up and the list price of the photograph.

Amount of mark-up = mark-up rate x wholesale price

List price = wholesale price + mark up

4. Rosa's music store bought a guitar at a wholesale price of 1,050. Rosa marked the price up 35%. Answer the following
questions:

 What is the markup amount?

Amount of mark-up = mark-up rate x wholesale price

= 35% x 1,050

m = 367.5

 What is the list price?

List price = wholesale price + mark up

= 1,050 + 367.5 p = 1,417.5

5. Cask’n’Cork wine shop has a markup rate of 17.9%. What price will the shop charge for a bottle of zinfandel wine that
costs 18.95 wholesale?

amount of mark-up = mark-up rate x wholesale price

= 17.9% x 18.95

m = 3.39
list price = wholesale price + mark up

= 18.05 + 3.39

p = 22.34

6. Mark buys 1,000 shares of stock for the current stock price of 20 per share. If the stock price goes up to 25 per share,
by what percentage does Mark increase his money?

mark-up percentage= (Current stock price - Cost to Produce) / Cost to Produce

= ( 25-20 ) / 20

=0. 25 or 25%

7. Mary works at a clothing store. She makes 13/hours and works 40 hours a week. Working at the clothing store gives
her a 25% discount on anything they sell. If she buys a sweater that retails for 50 and a jacket that retails for 144, what is
her net profit for the week?

total revenue = 13 x 40

= 520

total expenses = 50- 25% = 144 - 25 %

= 37.50 = 108

Net profit = Total Revenue - Total Expenses

= 520 - 37.50 – 108

= 374.50

8. The profit equation for a certain manufacturing process is P(x)=500x−10,000, where x is the number of units. How
much money will the plant make/lose if it sells 100 units?

P(x) = 500x - 10,000

= 500 (100) - 10,000

= 50,000 - 10,000

P(x) = 40,000

9. Company B produces toy trucks for a shopping mall at a cost of 7.00 each for the first 500 trucks and 5.00 for each
additional truck. If 600 trucks were produced by Company B and sold for 15.00 each, what was Company B’s gross
profit?

First 500 trucks = 7.00 x 500

= 3500
100 trucks cost 5.00 = 5.00 x 100

= 500

Cost of 600 trucks = 3500 + 500

= 4000

600 trucks cost 15.00 = 15.00 x 600

= 9000

gross profit = revenue - total cost

= 9000-4000

= 5000

10. Abe is a big gambler. He is equally likely to win, lose, or break even. When he loses, his loss is 1000. When he wins,
he either makes 500 or 1000 with equal probability. How much money does Abe win or lose on average?

average = 1/3 x (-1000) + 1/3 x 0 + 1/6 x 500 + 1/6 x 1000

= -83

11. A non-profit organization is selling shirts to raise money. They purchase 500 shirts at a cost of 5 per shirt. During the
course of the month, they are only able to sell 388 shirts. They donate the extra shirts. If the shirts sell for 13 each, how
much does the organization earn/lose during this campaign?

revenue = 388 x 13

= 5,044

expense = 500 x 5

= 2,500

profit = revenue- expense

= 5,044 - 2,500

= 2,544

12. Find the number of units, x, that a company must sell to break even if the profit equation is P(x)=500x−10,000.

P(x) = 500x−10,000

0=500x−10,000

10,000=500x

x=10,000/500

x=20
13. Last year, a car dealer purchased four cars for 250,000 each, and then later in the year he bought eight more cars for
350,000 each. If this year the car dealer sells the 12 cars for a combined total of 6,300,000 what is his net profit?

metprofit = 6,300,000 - (250,000 x 4) - (350,000 - 8)

= 6,300,000 - 1,000,000 - 2,800,000

=2,500,000

14. It costs 15,000 a month to operate Acme Widgets, Inc, plus 0.25 for every widgets produced. Each widget sells for
0.35. If gross profit is measured by the total dollar amount of sales minus operating and production costs, how many
widgets would Acme Widgets, Inc. have to sell to make a profit of 25,000?

profit= widget - operating costs - production costs

25,000 = 0.35+ w - 15,000 - 0.25

25,000+15,000 = 0.35+ w - 0.25

40,000/0.1 = w

400,000 = w

15. The French Club wants to make and sell cookies in order to raise 500 for a field trip. The equipment they want to use
costs 400 to rent and to operate, and the ingredients for the cookies cost 45 cents per cookie. The French Club wants to
sell the cookies for 2 each. At this price, how many cookies will they need to sell in order to earn back the money they
paid for the ingredients and the equipment rental and make a profit of 500?

 If x is the number of cookies sold, then which of the following equations represents the cost function?

C(x) = 0.45x+400

500 = 0.45x+400

500-400 =0.45x

100= 0.45x

x= 100/0.45

x= 222.22