Business Arithmetic 1 Exam Style Questions    
                       
Q1) In the city of Newton two telephone companies operate.    
                       
  Company A charges a fixed amount of £14 per month and gives 60 minutes worth of free calls.  
  For anything over the 60 minutes, calls are charged at 4 pence per minute.  
                       
  Company B has no fixed monthly fee but charges 11 pence per minute for all calls.  
                       
  a) Find the monthly bill for a user who makes 120 minutes worth of calls:      
                       
    with company A              
                       
    with company B              
                       
  b) How many minutes worth of calls have been made with company A      
    if the bill is £15.40?                
                     
                       
  Company B offers a discount of 4% to those customers who pay their bill online.  
                       
  c) Adrian decides to pay his bill online. What would be his new bill for      
    making 120 minutes worth of calls? Answer to 2 decimal places.        
                       
                     
                       
  d) If m minutes wirth of calls are made per month, write an expression for the     
    total cost c in pounds for each company:    
                       
    A: c = m   + (for m ≥ 60, £14 else).    
                       
    B: c = m   + (for all m)    
                       
  e) Find the number of minutes used for which the bill from both companies would be equal:  
                       
      number of minutes: rounded to nearest minute.      
                       
      cost of bill:            
                       
                       
                       
                       
Q2) Xenia's company makes chocolate animals sold in boxes of 4. Each animal is made from 20g of chocolate.  
  The empty boxes cost £ 0.15 each and 1 kg of chocolate costs £ 18.  
                       
  a) How many chocolate animals can be made from 1 kilogram of chocolate?      
                       
  b) She sells boxes for £ 1.80 each, what is her percentage profit margin? %
                       
  c) How much should she sell each box for to have a profit margin of 20% ?      
                       
                       
                       
Q3) Andrey ahs a car rental company and decides to offer two types of tarrif:  
                       
    Tarrif A: No fixed fee but a charge of £ 1.20 per mile travelled.        
    Tarrif B: A fixed fee of £200 plus £0.18 per mile travelled.        
                       
  For both tarrifs, the customer must also pay £0.50 per mile for petrol.  
                       
  a) If a customer travels 400 miles, calculate the cost under each tarrif:        
                       
    Cost under tarrif A:              
    Cost under tarrif B:              
                       
  b) Let x be the number of miles travelled and let y be the total cost.    
  Write down an expression for y in terms of x for each tarrif:    
                       
    A y = x   +          
                       
    B y = x   +          
                       
  c) The total cost is the same for both tariffs, find:            
                       
  i) the number of miles travelled:            
                       
  ii) the total cost:            
                       
                       
                       
Q4) a) VAT at 17.5% is added to the price of all goods. If a digital radio is £ 62.50  
  before the VAT is added, what is its price after the VAT is added?  
                       
                     
                       
  b) Celia bought a washing machine for £345. The price included the VAT.  
  What was the price of the washing machine before the VAT was added?  
                       
                     
                       
                       
                       
Q5) Ahmed has a small decorating business. His charges are given by the equation c = 5 + 60 h, where c is the   
  total charge and h is the number of hours worked.  
  Asif has a similar business and his charges are given by the equation c = 230 + 15 h.  
     
  Find the number of hours and the cost when both men charge the same price for a job.  
                       
        Hours:            
                       
        Cost:            
                       
                       
                       
Q6) Simona makes necklaces. Each necklace is made up of a silver chain and 30 coloured beads.  
  The silver chains cost £2.50 each and the beads cost £3 for a pack of 150.  
  She sells the necklaces for £ 4.15 each.  
                       
  a) If she buys 5 packs of beads, how many necklaces can she make?      
                       
  b) Assuming she sells all the necklaces, what is her profit margin to 2 decimal places?   %
                       
  c) How many necklaces does she need to sell in order to break even (nearest whole number)?