Free Essay

Submitted By karllaflare

Words 1229

Pages 5

Words 1229

Pages 5

Options: $987

Destination charge: $190

Sticker price: $9,852

Profit margin: 15%

Dealer cost: __________

Correct | |

|2. |Base price: $15,555 |

| |Options: 425 |

| |Destination charges: $250 |

| |Sticker price: $16,230 |

| |Profit margin: __________ |

| |Dealer profit: $1,275 |

| |Incorrect |

|3. |A car has a sticker price of $8,775 and the dealer's profit margin is 15%. What is the dealer's profit on|

| |the car? Would the dealer be likely to accept an offer of $7,000? |

| |Incorrect |

|4. |Wes offered to pay $400 over the dealer's cost on a Knockout SX, which had a sticker price of $7,850. The|

| |dealer's profit margin is 10%. How much less would the dealer's profit be if she accepted Wes' offer? |

| |Incorrect |

|5. |A car dealer sells Wilsons, which have a sticker price of $9,779. Her usual profit margin on this model |

| |is 12%. She wants to increase her profit by $391.16. What would her new profit margin be? |

| |Incorrect |

|6. |Model: Compact |

| |Cash price: $6,500 |

| |Down payment: 20% |

| |Number of payments: 24 |

| |Monthly payment: $234 |

| |Finance charge: __________ |

| |Incorrect |

|7. |Model: Subcompact |

| |Cash price: $4,990 |

| |Down payment: $1,500 |

| |Number of payments: 36 |

| |Monthly payment: $109.94 |

| |Finance charge: __________ |

| |Incorrect |

|8. |Model: Mid-size |

| |Cash price: $7,590 |

| |Down payment: 15% |

| |Number of payments: 36 |

| |Monthly payment: __________ |

| |Finance charge: $741.92 |

| |Incorrect |

|9. |Model: Subcompact |

| |Cash price: $5,120 |

| |Down payment: __________ |

| |Number of payments: 24 |

| |Monthly payment: $188.33 |

| |Finance charge: $520 |

| |Incorrect |

|10. |Sid settled on a price of $9,215 for a mid-size car. The dealer allowed a $3,100 trade-in for Sid's old |

| |truck and charged a 5% sales tax. Sid paid 20% of the remainder down and financed the rest. How much did |

| |he have to finance? |

| |Incorrect |

|11. |Sally settled on a price of $7,123 for a mid-size car. The dealer added 5% sales tax and allowed a $1,200|

| |trade-in for Sally's old car. Sally made no down payment. How much did she need to finance. |

| |Incorrect |

|12. |Raya settled on a price of $5,225 for a subcompact car. The dealer had to add 6% sales tax. Raya had no |

| |car trade in, but she wanted to make a 25% down payment. How much would she need to finance? |

| |Incorrect |

|13. |Raya settled on a price of $5,225 for a subcompact car. The dealer had to add 6% sales tax. Raya had no |

| |car trade in, but she wanted to make a 25% down payment. Raya then decided to repay the remainder of the |

| |car off in 36 monthly payments. Her monthly payments, which included the finance charge, were $127.50. |

| |What was the final cost of the new car? |

| |Correct |

|Part 2 |

|Multiple Choice: Use the following table to find the base premium for the coverage. Choose the correct answer for each. |

|ANNUAL BASE PREMIUM |

|FOR LIABILITY/PROPERTY INSURANCE |

| |

|Liability |

|Property Damage |

| |

|Limit |

|Premium |

|Limit |

|Premium |

| |

|10/20 |

|$75 |

|$5,000 |

|$31 |

| |

|25/50 |

|78 |

|10,000 |

|35 |

| |

|50/100 |

|81 |

|25,000 |

|39 |

| |

|100/300 |

|84 |

|50,000 |

|43 |

| |

|(Each question is worth one point) |

|14. |Name: Bob Smith |

| |Coverage: 50/100/10 |

| |Rating factor: 2.25 |

| |Premium: __________ |

| |Correct |

|15. |Name: Sue Jones |

| |Coverage: 25/50/50 |

| |Rating factor: __________ |

| |Premium: $211.75 |

| |Incorrect |

|16. |Name: Allen Rogers |

| |Coverage: 100/300/50 |

| |Rating factor: __________ |

| |Premium: $273.05 |

| |Incorrect |

|17. |Name: Clare Jenkins |

| |Coverage: 10/20/5 |

| |Rating factor: 1.15 |

| |Premium: __________ |

| |Incorrect |

|18. |Jim wants to change his coverage from 50/100/25 to 100/300/50. How much more will this cost him if his rating factor is |

| |1.75? |

| |Incorrect |

|19. |Debby has a rating factor of 1.20. Her insurance premiums are paid in two equal payments every six months. She has |

| |premiums of $10 for medical coverage, $4 for uninsured motorist premium, $180 for collision, and $80 for comprehensive. |

| |What is the maximum liability and property damage she can obtain and still keep her semiannual payments under $225? |

| |Correct |

|Part 3 |

|Multiple Choice: Use the following information and the price list for Premium Auto Repair for the following exercises. Choose the|

|correct answer for each. |

|[pic] |

|(Each question is worth one point) |

|20. |What is the cost of a muffler job? |

| |Incorrect |

|21. |What is the cost of the parts of a muffler job? |

| |Incorrect |

|22. |What is the cost of labor for a muffler job? |

| |Incorrect |

|23. |An oil change requires 5 quarts of oil and an oil filter, and takes three quarters of an hour to complete. What is the |

| |labor cost of an oil change? |

| |Incorrect |

|24. |An oil change requires 5 quarts of oil and an oil filter, and takes three quarters of an hour to complete. What is the |

| |cost of the parts of an oil change? |

| |Incorrect |

|25. |An oil change requires 5 quarts of oil and an oil filter, and takes three quarters of an hour to complete. What is the |

| |entire cost of an oil change? |

| |Correct |

|26. |What is the cost of purchasing two new tires and rotating the other two tires, if rotating the tires takes ¾ hour? |

| |Incorrect |

|Part 4 |

|Multiple Choice: Solve the following, then choose the correct answer for each. (Each question is worth one point) |

|27. |When Martin examined the bill for his car repair, he noted that the labor was 32% of the total cost. The cost of the parts|

| |was $128.88 more than the cost of labor. What was the total cost of the repair? |

| |Incorrect |

|28. |For a certain repair job, labor was 65% of the total cost. If the cost of parts was $235.50 less than the cost of labor, |

| |what was the total cost of the repair? |

| |Incorrect |

|Part 5 |

|Multiple Choice: Using the information provided, select the best answer for the questions given. |

|Jettilac 2004 GL Model Options Base Price $18,670 |

| |

|Item |

|Price |

| |

|Power train: |

| |

| |

|Engine: 1.9L I-4 SOHC Direct Diesel Injection Transmission: 5-Speed Manual w/Overdrive Transmission: 5-Speed Automatic |

|w/Tiptronic & OD |

|Standard Standard $1,075 |

| |

|Wheels & Tires: |

| |

| |

|Tires: P195/65R15 H AS Wheels: 6J x 15 in Steel w/Full Wheel Cover |

|Standard Standard |

| |

|Seats & Seat Trim: |

| |

| |

|Fully Reclining Front Bucket Seats Flat Woven Cloth Seat Trim |

|Standard Standard |

| |

|Other Options: |

| |

| |

|Radio: Premium AM/FM CD/Cassette Electronic Stabilization Program (ESP) VolksMobile Telematics by InStar ** |

|Standard $380 $699 |

| |

|Port Installed Options: |

| |

| |

|Rear Spoiler 6 Disc Trunk Mounted CD Changer Splash Guards (Set of 4) |

|$479 $499 $139 |

| |

|Destination Charge: |

|$575 |

| |

|Total: |

| |

| |

|(Each question is worth one point) |

|29. |What is the sticker price of the car with no extra options? |

| |Incorrect |

|30. |What is the sticker price of the Jettilac with a 5-speed Tiptronic engine, spoiler and 6-CD changer? |

| |Correct |

|31. |Assuming that your state charges 7.5% sales tax, how much tax would be added to the sticker price of the car with the |

| |options of 5-speed Tiptronic engine, spoiler and 6-CD changer? |

| |Incorrect |

|32. |Assuming the options of 5-speed Tiptronic engine, spoiler, 6-CD changer, and a state sales tax rate of 7.5%, if the dealer|

| |takes a rate of profit of 18% of the sticker price, what is the dealer's profit? |

| |Correct |…...