Question 1

If you operate a home-based business, the Canada Revenue Agency (CRA) will usually allow you to report certain "office-in-home" expenses. The portion of heat, insurance, electricity, property taxes, and mortgage interest that you may report must be (in the language of the CRA) "reasonable under the circumstances." Rose uses 2 of the 11 rooms in her home for her real estate appraisal business. The combined floor area of the 2 rooms is 36 m². The remainder of the house has an area of 147 m². Rose's total expenses in the home-related categories were $17,512 for the year. What amount will qualify as "office-in-home" expenses if the proration is based on: a) The number of rooms used for the business? b) The floor area devoted to business use?

Accepted Answer

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Question 2

The Ministry of Education reported that the average school district in the province has 13,450 students in "K to 12" programs, an annual budget of $87.4 million, and 635 full-time-equivalent teachers. The Middleton School District (MSD), with an annual budget of $69.1 million and 498 teachers, serves 10,320 students. What adjustments would have to be made to MSD's budget and staffing to have them in the same proportion to enrolment as the provincial average?

Accepted Answer

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Question 3

A punch recipe calls for fruit juice, ginger ale, and vodka to be mixed in the ratio 6: 2.5: 1. How much fruit juice and vodka should be mixed with a 2 litre bottle of ginger ale?

Accepted Answer

The answer of A punch recipe calls for fruit juice,...

Question 4

The leases in multiple-unit commercial developments commonly permit the landlord to allocate to the tenants various common area and general costs such as property taxes, janitorial services, security services, and snow removal. These costs are usually prorated on the basis of the floor area leased to each tenant. Granny's Chicken, Toys 'n Novelties, and Pine Tree Pharmacy are the three tenants in Pine Tree Square. They lease 172 square metres, 136 square metres, and 420 square metres, respectively. How should common costs totalling $9,872 for the past year be allocated?

Accepted Answer

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Question 5

Solve the following proportion for the unknown quantities: a: 58: 132 = 38: 27: b

Accepted Answer

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Question 6

Their partnership agreement requires Harry, Draco, and Hermione to provide capital "when and as required" by the partnership in the ratio 1: 1.35: 0.85, respectively.
a) The total initial capital requirement was $256,000. How much did each partner contribute?
b) One year later, Hermione's share of an additional injection of capital was $16,320. What was Draco's share?

Accepted Answer

The answer of Their partnership agreement requires Harry, Draco, and...

Question 7

When real estate is sold, the year's property taxes are allocated to the vendor and the purchaser in proportion to the number of days that each party owns the property during the year. If the purchaser took possession of a property effective August 8 (of a 365-day year), how will the year's property taxes of $2,849 be allocated to the vendor and purchaser?

Accepted Answer

The answer of When real estate is sold, the year's...

Question 8

Three insurance companies agree to jointly insure a cargo ship for $38.6 million. If insurers A, B, and C allocate premiums received and accept the risk in the ratio 3: 8: 5, respectively:
a) How will the annual premium of $900,000 be distributed?
b) What is the maximum claim exposure of each insurer?

Accepted Answer

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Question 9

Solve the following proportion for the unknown quantities: 0.69: 1.17: 0.4 = r: s: 6.5

Accepted Answer

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Question 10

A three-year magazine subscription costing $136 may be cancelled at any time, and a prorated refund will be made for the remaining weekly issues. If Juanita cancels her subscription after receiving 17 issues in the second year, what refund should she get? Assume there are exactly 52 weeks in a year.

Accepted Answer

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Question 11

A partnership agreement provides that half of the annual profit be distributed in proportion to each partner's investment in the partnership, and that the other half be distributed in proportion to the total number of hours that each partner worked in the business during the year. How should the most recent year's profit of $84,780 be allocated if the amounts invested by Huey, Dewey, and Louie are $70,000, $30,000, and $45,000, and their hours of work for the year were 425; 1,680; and 1,440, respectively?

Accepted Answer

The answer of A partnership agreement provides that half of...

Question 12

Tom Nortons Donuts considers the Hamilton area to be its most mature, fully-exploited market. The 59 outlets in the metropolitan area serve a population of 675,000 and generate annual sales of $66.67 million. The management of Tom Nortons views its Calgary market as under-exploited. The 65 outlets generate annual sales of $63.05 million from a population of 1,075,000. If Tom Nortons had penetrated the Calgary market to the same degree and success as the Hamilton market, how many additional outlets would it have, and how much higher (rounded to the nearest $0.01 million) would its annual sales be?

Accepted Answer

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Question 13

Wendy, Simone, and Leif share the costs of their coffee fund in the ratio  . How will $50 be allocated among them?

Accepted Answer

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Question 14

How should common area costs totalling $28,600 be allocated among commercial tenants A, B, C, and D if the costs are prorated based on leased areas of 1,260; 3,800; 1550 and 2,930 sq ft, respectively?

Accepted Answer

The answer of How should common area costs totalling $28,600...

Question 15

The new University Hospital is scheduled to have 436 beds. The ratio of nurses to beds to nurses' aides for staffing the hospital is 4: 9: 2. How many nurses and aides will need to be hired?

Accepted Answer

The answer of The new University Hospital is scheduled to...

Question 16

A provincial government allocates 29% of its budget to education, 31% to health care, and 21% to social services. If the dollar amount budgeted for education is $13.7 billion, how much is budgeted for health care and for social services?

Accepted Answer

The answer of A provincial government allocates 29% of its...

Question 17

Mr. Subhani's will specified that, upon liquidation of any asset, the proceeds be divided among his wife, his son, and his sister in the ratio of 7: 5: 3.
a) If the son received $9500 from the sale of securities, what amounts did Bartlett's wife and sister receive?
b) What amount would the sister receive from the sale of the deceased's boat for $27,000?

Accepted Answer

The answer of Mr. Subhani's will specified that, upon liquidation...

Question 18

Solve the following proportion for the unknown quantities: 8500: x: y = 4/3: 1: 5/3

Accepted Answer

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Question 19

If you use your car for both business and pleasure, the Canada Revenue Agency will usually allow you to report a portion of the costs of operating the vehicle as a business expense. This portion is determined by the ratio of the distance travelled on business to the total distance travelled in the year.
Last year, Harjap spent a total of $11,348 on gasoline, oil, repairs and maintenance, and insurance. His travel log shows that he drove 14,488 km on business and 8,329 km on personal use. What vehicle expense can Harjap report for the year?

Accepted Answer

The answer of If you use your car for both...

Question 20

For the last 5 years the sales of Departments D, E, and F have maintained a relatively stable ratio of 13: 17: 21. Department E is forecasting sales of $478,000 for next year. Based on the past sales ratio, what sales would be expected for Departments D and F?

Accepted Answer

The answer of For the last 5 years the sales...

Quiz 3: Ratios and Proportions

A punch recipe calls for fruit juice, ginger ale, and vodka to be mixed in the ratio 6: 2.5: 1. How much fruit juice and vodka should be mixed with a 2 litre bottle of ginger ale?

Solve the following proportion for the unknown quantities: a: 58: 132 = 38: 27: b

Solve the following proportion for the unknown quantities: 0.69: 1.17: 0.4 = r: s: 6.5

Wendy, Simone, and Leif share the costs of their coffee fund in the ratio . How will $50 be allocated among them?

How should common area costs totalling $28,600 be allocated among commercial tenants A, B, C, and D if the costs are prorated based on leased areas of 1,260; 3,800; 1550 and 2,930 sq ft, respectively?

The new University Hospital is scheduled to have 436 beds. The ratio of nurses to beds to nurses' aides for staffing the hospital is 4: 9: 2. How many nurses and aides will need to be hired?

A provincial government allocates 29% of its budget to education, 31% to health care, and 21% to social services. If the dollar amount budgeted for education is $13.7 billion, how much is budgeted for health care and for social services?

Solve the following proportion for the unknown quantities: 8500: x: y = 4/3: 1: 5/3

For the last 5 years the sales of Departments D, E, and F have maintained a relatively stable ratio of 13: 17: 21. Department E is forecasting sales of $478,000 for next year. Based on the past sales ratio, what sales would be expected for Departments D and F?