1
Ivy Software Business Math and Statistics Exam
ACTUAL EXAM 2026/2027 | Questions and
100% Verified Correct Detailed Answers |
Graded A+ | Pass Guaranteed - A+ Graded
Section 1: Business Mathematics Fundamentals (Questions 1-20)
Question 1
A business purchased inventory at a cost of $5,000. The markup on cost is 40%. What is the
selling price?
A. $2,000
B. $5,400
C. $7,000 [CORRECT]
D. $8,333
Correct Answer: C
Rationale: Markup on cost means the markup percentage is applied to the cost price. Markup
amount = Cost × Markup percentage = $5,000 × 0.40 = $2,000. Selling price = Cost + Markup =
$5,000 + $2,000 = $7,000. Distractor A ($2,000) is the markup amount only. Distractor B
($5,400) uses a markup of 8% instead of 40%. Distractor D ($8,333) would be the selling price if
the markup was on selling price (40% of selling price = $5,000, so selling price = $5,.6 =
$8,333).
Question 2
A store offers a 20% discount on an item originally priced at $250. What is the sale price?
A. $50
B. $200 [CORRECT]
C. $230
D. $300
Correct Answer: B
,2
Rationale: Discount amount = Original price × Discount rate = $250 × 0.20 = $50. Sale price =
Original price - Discount = $250 - $50 = $200. Distractor A ($50) is the discount amount only.
Distractor C ($230) uses a discount of $20 (8%). Distractor D ($300) adds the discount instead of
subtracting.
Question 3
A salesperson earns a 5% commission on all sales. If they sell $45,000 worth of products in a
month, what is their commission?
A. $900
B. $2,250 [CORRECT]
C. $4,500
D. $9,000
Correct Answer: B
Rationale: Commission = Sales × Commission rate = $45,000 × 0.05 = $2,250. Distractor A
($900) uses 2% instead of 5%. Distractor C ($4,500) uses 10% instead of 5%. Distractor D
($9,000) uses 20% instead of 5%.
Question 4
A company has fixed costs of $50,000 per month. Each unit produced sells for $25 and has
variable costs of $15. How many units must be sold to break even?
A. 2,000 units
B. 3,333 units
C. 5,000 units [CORRECT]
D. 10,000 units
Correct Answer: C
Rationale: Break-even point in units = Fixed Costs / (Selling Price - Variable Cost per unit) =
$50,000 / ($25 - $15) = $50,000 / $10 = 5,000 units. Distractor A (2,000) would break even at
$10 contribution margin but $20,000 fixed costs. Distractor B (3,333) might use $15 contribution
incorrectly. Distractor D (10,000) uses $5 contribution margin.
Question 5
If a product costs $80 and sells for $120, what is the markup percentage on cost?
A. 33.33%
,3
B. 40%
C. 50% [CORRECT]
D. 66.67%
Correct Answer: C
Rationale: Markup on cost = (Selling Price - Cost) / Cost × 100% = ($120 - $80) / $80 × 100% =
$40 / $80 × 100% = 0.5 × 100% = 50%. Distractor A (33.33%) is markup on selling price
($40/$120). Distractor B (40%) is incorrect. Distractor D (66.67%) would be selling price
$133.33.
Question 6
An employee earns $18 per hour and works 40 hours per week. Overtime is paid at 1.5 times the
regular rate. If they work 48 hours in a week, what is their gross pay?
A. $864
B. $936 [CORRECT]
C. $1,008
D. $1,080
Correct Answer: B
Rationale: Regular pay = 40 hours × $18 = $720. Overtime hours = 8 hours. Overtime rate = $18
× 1.5 = $27 per hour. Overtime pay = 8 × $27 = $216. Total gross pay = $720 + $216 = $936.
Distractor A ($864) uses overtime rate of $18 (straight time). Distractor C ($1,008) uses double
time ($36). Distractor D ($1,080) uses 60 hours at $18.
Question 7
A store offers a chain discount of 20/10 on an item listed at $500. What is the net price?
A. $350
B. $360 [CORRECT]
C. $400
D. $450
Correct Answer: B
Rationale: Chain discounts are applied sequentially. First discount: 20% off = $500 × 0.80 =
$400. Second discount: 10% off the new price = $400 × 0.90 = $360. Distractor A ($350) adds
discounts (20% + 10% = 30%, $500 × 0.70 = $350) – this is incorrect because discounts cannot
, 4
be added. Distractor C ($400) is only the first discount. Distractor D ($450) is only a 10%
discount.
Question 8
Solve for x: 5x - 12 = 3x + 24
A. x = 6
B. x = 12
C. x = 18 [CORRECT]
D. x = 36
Correct Answer: C
Rationale: 5x - 12 = 3x + 24 → Subtract 3x from both sides: 2x - 12 = 24 → Add 12 to both
sides: 2x = 36 → Divide by 2: x = 18. Distractor A (6) would give 30-12=18 and 18+24=42, not
equal. Distractor B (12) would give 60-12=48 and 36+24=60. Distractor D (36) would give 180-
12=168 and 108+24=132.
Question 9
A company's sales increased from $200,000 last year to $250,000 this year. What is the
percentage increase?
A. 20%
B. 25% [CORRECT]
C. 50%
D. 125%
Correct Answer: B
Rationale: Percentage increase = (New - Old) / Old × 100% = ($250,000 - $200,000) / $200,000
× 100% = $50,000 / $200,000 × 100% = 0.25 × 100% = 25%. Distractor A (20%) uses
$50,000/$250,000. Distractor C (50%) uses $100,000/$200,000. Distractor D (125%) is
$250,000/$200,000.
Question 10
If the ratio of men to women in a company is 3:5 and there are 120 men, how many women are
there?
A. 72
B. 120
Ivy Software Business Math and Statistics Exam
ACTUAL EXAM 2026/2027 | Questions and
100% Verified Correct Detailed Answers |
Graded A+ | Pass Guaranteed - A+ Graded
Section 1: Business Mathematics Fundamentals (Questions 1-20)
Question 1
A business purchased inventory at a cost of $5,000. The markup on cost is 40%. What is the
selling price?
A. $2,000
B. $5,400
C. $7,000 [CORRECT]
D. $8,333
Correct Answer: C
Rationale: Markup on cost means the markup percentage is applied to the cost price. Markup
amount = Cost × Markup percentage = $5,000 × 0.40 = $2,000. Selling price = Cost + Markup =
$5,000 + $2,000 = $7,000. Distractor A ($2,000) is the markup amount only. Distractor B
($5,400) uses a markup of 8% instead of 40%. Distractor D ($8,333) would be the selling price if
the markup was on selling price (40% of selling price = $5,000, so selling price = $5,.6 =
$8,333).
Question 2
A store offers a 20% discount on an item originally priced at $250. What is the sale price?
A. $50
B. $200 [CORRECT]
C. $230
D. $300
Correct Answer: B
,2
Rationale: Discount amount = Original price × Discount rate = $250 × 0.20 = $50. Sale price =
Original price - Discount = $250 - $50 = $200. Distractor A ($50) is the discount amount only.
Distractor C ($230) uses a discount of $20 (8%). Distractor D ($300) adds the discount instead of
subtracting.
Question 3
A salesperson earns a 5% commission on all sales. If they sell $45,000 worth of products in a
month, what is their commission?
A. $900
B. $2,250 [CORRECT]
C. $4,500
D. $9,000
Correct Answer: B
Rationale: Commission = Sales × Commission rate = $45,000 × 0.05 = $2,250. Distractor A
($900) uses 2% instead of 5%. Distractor C ($4,500) uses 10% instead of 5%. Distractor D
($9,000) uses 20% instead of 5%.
Question 4
A company has fixed costs of $50,000 per month. Each unit produced sells for $25 and has
variable costs of $15. How many units must be sold to break even?
A. 2,000 units
B. 3,333 units
C. 5,000 units [CORRECT]
D. 10,000 units
Correct Answer: C
Rationale: Break-even point in units = Fixed Costs / (Selling Price - Variable Cost per unit) =
$50,000 / ($25 - $15) = $50,000 / $10 = 5,000 units. Distractor A (2,000) would break even at
$10 contribution margin but $20,000 fixed costs. Distractor B (3,333) might use $15 contribution
incorrectly. Distractor D (10,000) uses $5 contribution margin.
Question 5
If a product costs $80 and sells for $120, what is the markup percentage on cost?
A. 33.33%
,3
B. 40%
C. 50% [CORRECT]
D. 66.67%
Correct Answer: C
Rationale: Markup on cost = (Selling Price - Cost) / Cost × 100% = ($120 - $80) / $80 × 100% =
$40 / $80 × 100% = 0.5 × 100% = 50%. Distractor A (33.33%) is markup on selling price
($40/$120). Distractor B (40%) is incorrect. Distractor D (66.67%) would be selling price
$133.33.
Question 6
An employee earns $18 per hour and works 40 hours per week. Overtime is paid at 1.5 times the
regular rate. If they work 48 hours in a week, what is their gross pay?
A. $864
B. $936 [CORRECT]
C. $1,008
D. $1,080
Correct Answer: B
Rationale: Regular pay = 40 hours × $18 = $720. Overtime hours = 8 hours. Overtime rate = $18
× 1.5 = $27 per hour. Overtime pay = 8 × $27 = $216. Total gross pay = $720 + $216 = $936.
Distractor A ($864) uses overtime rate of $18 (straight time). Distractor C ($1,008) uses double
time ($36). Distractor D ($1,080) uses 60 hours at $18.
Question 7
A store offers a chain discount of 20/10 on an item listed at $500. What is the net price?
A. $350
B. $360 [CORRECT]
C. $400
D. $450
Correct Answer: B
Rationale: Chain discounts are applied sequentially. First discount: 20% off = $500 × 0.80 =
$400. Second discount: 10% off the new price = $400 × 0.90 = $360. Distractor A ($350) adds
discounts (20% + 10% = 30%, $500 × 0.70 = $350) – this is incorrect because discounts cannot
, 4
be added. Distractor C ($400) is only the first discount. Distractor D ($450) is only a 10%
discount.
Question 8
Solve for x: 5x - 12 = 3x + 24
A. x = 6
B. x = 12
C. x = 18 [CORRECT]
D. x = 36
Correct Answer: C
Rationale: 5x - 12 = 3x + 24 → Subtract 3x from both sides: 2x - 12 = 24 → Add 12 to both
sides: 2x = 36 → Divide by 2: x = 18. Distractor A (6) would give 30-12=18 and 18+24=42, not
equal. Distractor B (12) would give 60-12=48 and 36+24=60. Distractor D (36) would give 180-
12=168 and 108+24=132.
Question 9
A company's sales increased from $200,000 last year to $250,000 this year. What is the
percentage increase?
A. 20%
B. 25% [CORRECT]
C. 50%
D. 125%
Correct Answer: B
Rationale: Percentage increase = (New - Old) / Old × 100% = ($250,000 - $200,000) / $200,000
× 100% = $50,000 / $200,000 × 100% = 0.25 × 100% = 25%. Distractor A (20%) uses
$50,000/$250,000. Distractor C (50%) uses $100,000/$200,000. Distractor D (125%) is
$250,000/$200,000.
Question 10
If the ratio of men to women in a company is 3:5 and there are 120 men, how many women are
there?
A. 72
B. 120
