Base price: $8,674
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 |