business calculations l2 past paper series 3 2011

7/28/2019 Business Calculations L2 Past Paper Series 3 2011

1/6

2003/3/11 Page 1 of 6 ASE 2003 3 11 1

Series 3 Examination 2011

INSTRUCTIONS FOR CANDIDATES

Answerall 8 questions.

Write your answers in blue or black ink/ballpoint. You may use pencil only for graphs, charts,

diagrams, etc.

All answers must be correctly numbered but need not be in numerical order.

You must show all calculations, where applicable, on the answer paperprovided.

You can use mathematical and statistical tables.

Your work should be accurate and neat.

You may use a calculator provided the calculator gives no printout, has no word display facilities,is silent and cordless. The provision of batteries and their condition is your responsibility.

BUSINESS CALCULATIONS

Level 2

Friday 3 June

Subject Code: 2003

Time allowed: 2 hours 30 minutes


2/6

2003/3/11 Page 2 of 6

Answer all questions

QUESTION 1

A trader purchased 15,000 items for a total of 5,400 and sold 9,800 of them at 63p each.

(a) Calculate the gross profit on each item sold as a percentage of its cost price.(4 marks)

The remainder were then considered out of date and were disposed of for no income.

(b) Calculate:

(i) the gross profit made on the 15,000 items(2 marks)

(ii) the gross profit as a percentage of the outlay.(2 marks)

The trader had overhead expenses of 218.34.

(c) Calculate the net profit as a percentage of sales (revenue).

(3 marks)

The trader could have instead invested the 5,400 and received interest of 45.

(d) Express this interest as a percentage of the amount invested.(2 marks)

The interest would have been earned in two-and-a-half months.

(e) Calculate the annual percentage interest rate.(2 marks)

(Total 15 marks)


3/6

2003/3/11 Page 3 of 6

QUESTION 2

Jeremy, a sales representative, is paid a basic annual salary of 13,260. In addition graduatedcommission is paid on monthly sales according to the following table:

Sales Range Rate of commission

%

First 10,000 0 - 10,000 1.5

Next 15,000 10,001 - 25,000 Figure left out

Over 25,000 25,001 - 5

In March, sales totalled 27,900.

Calculate:

(a) the commission earned by Jeremy on the first 10,000 of March sales(2 marks)

(b) the commission earned by Jeremy on the March sales over 25,000.(2 marks)

Jeremys total commission for March was 707.50.

Calculate:

(c) the rate of commission for the sales shown as Next 15,000 in the table above(3 marks)

(d) Jeremys total earnings for March.(2 marks)

For the month of April, Jeremy received pay of 1,507 net of tax and national insurance.

Tax deducted was 260 and national insurance deducted was 133.

Calculate:

(e) Jeremys gross pay for April(2 marks)

(f) for the month of April, national insurance as a percentage of gross pay.(2 marks)

(Total 13 marks)


4/6

2003/3/11 Page 4 of 6

QUESTION 3

Katya receives a statement of account for 620 due for payment within 28 days.

She decides to delay payment for 25 days.

If Katya had borrowed the 620 for 25 days, at a rate of 5% simple interest per annum, calculate:

(a) the rate of interest per day, correct to three significant figures(2 marks)

(b) the amount of interest she would have paid.(2 marks)

Katya pays the statement within the 28 days, and claims a discount of 2% for prompt payment.

Calculate:

(c) the amount of the discount(2 marks)

(d) the amount Katya pays.(2 marks)

Over a six-month period, Katya pays the following amounts each month:

230, 770, 110.50, 502.60, 604.50 and 362.40

(e) Calculate the average payment per month.(3 marks)

(Total 11 marks)

QUESTION 4

A retailers premises are valued at 270,000 with contents valued at 65,000.

Insurer A offers annual insurance premium rates as follows:

Buildings 8.78 per 10,000 insuredContents 1.90 per 1,000 insured

(a) Calculate the total annual premium with insurer A.(3 marks)

Insurer B offers buildings insurance for 10.95 per 10,000 insured. The total cost of insuring theretailers buildings and contents with insurer B is 473.10.

(b) (i) Calculate the cost of contents insurance per 1,000 of value with insurer B.

(4 marks)(ii) Convert the total cost of insuring with Insurer B to pounds using an exchange

rate of 1 = 1.25.(2 marks)

Insurer C quotes the price of contents insurance as 25.35 per 10,000 insured, or part thereof.

(c) (i) Explain how this will be applied to the retailers contents.(1 mark)

(ii) Provide a calculation to support your explanation.(1 mark)

(Total 11 marks)


5/6

2003/3/11 Page 5 of 6

QUESTION 5

Soong earns a salary of 31,200. He wishes to compare his earnings with similar jobs in America andEurope. He uses the conversion rates:

1 = $1.45 and 1 = 0.78

(a) Calculate Soongs salary:

(i) in US dollars(2 marks)

(ii) in euros.(2 marks)

(b) Calculate the number of dollars equal to one euro.(2 marks)

(c) Calculate the conversion rate between dollars and euros. Give your answer ineuros per dollar correct to 4 significant figures.

(2 marks)

Soong works for a partnership. There are 6 junior partners and one senior partner. The junior partnersreceive equal shares of the profits, and the senior partner receives twice the share of a junior partner.

(d) Calculate the amount received by a junior partner in a year when the partnership madea profit of 300,000.

(3 marks)

(Total 11 marks)

QUESTION 6

Lynn buys a car originally priced at 15,999. The garage offers to reduce this to a cash price of 15,000.

(a) Calculate the discount as a percentage reduction.(3 marks)

The hire purchase terms require a deposit of 10% of the cash price, and 36 monthly payments of498.75 each.

(b) Calculate:

(i) the amount of the deposit(2 marks)

(ii) the total cost of the car to Lynn.(3 marks)

In hire purchase the additional cost is considered to be interest on the amount owing after deposit.Taking the amount owing after deposit to be the difference between the cash price and the deposit,calculate:

(c) the total interest charged(3 marks)

(d) the total interest as a percentage of the amount owing after deposit(2 marks)

(e) the rate of simple interest per annum charged on the amount owing after deposit.(2 marks)

(Total 15 marks)


6/6

2003/3/11 Page 6 of 6 Education Development International plc 2011

QUESTION 7

Perdita and Quentin started a partnership business with investments in the ratio 8 : 9 and a total jointinvestment of 40,800

In the first year of the partnership, Perdita and Quentin paid themselves interest on their investments of768 and 864 respectively.

(a) Calculate the total interest as a percentage of the total investment.(3 marks)

(b) Calculate the amount invested by Perdita.(3 marks)

In the first year, the partnership issues invoices totalling 34,000, and offers a discount of 3% forpayment within 14 days.

35% of the total amount invoiced is paid after 14 days.1,500 is never received, and eventually written off as bad debts.The rest is paid within 14 days.

Calculate:

(c) the total amount of discount taken(4 marks)

(d) the total amount received on the invoices.(2 marks)

At the end of the first year of trading, Perdita and Quentin adjust their investments to 20,000 and24,000 respectively.

At the start of the second year of trading, Robin joins the partnership, so that the ratio of investments isPerdita : Quentin : Robin = 5 : 6 : 7.

(e) Calculate the amount Robin invested in the partnership.

(2 marks)

(Total 14 marks)

QUESTION 8

In 2009, a company employed 67 people and had a total annual salary expenditure of 1,511,520.

(a) Calculate the average annual salary per employee.(2 marks)

The company takes out employee insurance at a cost of 15.60 per employee.

(b) Calculate the total cost of employee insurance to the company.(2 marks)

In the year 2010, the company paid employees as follows:

Salary band () Number of employees10,000 and under 20,000 2720,000 and under 30,000 2130,000 and under 50,000 12

(c) Calculate the estimated average (mean) annual salary per employee in 2010.(6 marks)

(Total 10 marks)

business calculations l2 past paper series 3 2011

Documents