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3-14 Everything Decimals CH 3]
Or with your hand calculator 50.65 x 7.5 = $379.875 Rounded to $379.88
To determine the total amount for commodities that are bought and sold by the thousand
(M), divide the quantity by 1,000 and multiply by the price per M.
Example B: Calculate the total cost of 5,000 printed forms at $8.24 per M.
Solution: 5.00 (5,000 ÷ 1,000)
x $8.24 (price per M)
2000
1000
4000
$41.2000 = $41.20 (Total Cost)
Or with your hand held calculator 5 x 8.24 = 41.2 $41.20
To determine the total amount for commodities that are bought and sold by the ton (T),
divide the quantity by 2,000 and multiply by the price per T.
Example C: Determine the total cost of 17,472 pounds of Oranges at $112 per T.
Solution: First convert the pounds of oranges to Tons.
17,472 pounds ÷ 2000 pounds / Ton = 8.736 Tons
Next multiply the Tonnage by the Price per Ton (T)
8.736 Tons x $112 = $978.432
apply the rounding rule and arrive at $978.43
Remember when dealing with the amounts of money the answers are rounded by the
rounding rules to the nearest hundredth, which is cents ( ¢ ).
Example D: Round the following numbers to the nearest cent.
Solution: $8.4656 = $8.47 $8.4647 = $8.46
When dealing with money amounts the rounding applied to the final amount per the
Economy of Scale: a
reduction in the cost of rounding rules in Figure 3.5. You are always rounding to the nearest cent.
producing something When calculating the selling price per item, the rounding rule is adjusted because the
(such as a car or a unit number of items affect the price per unit. For example presume that you are purchasing
of electricity) brought one dozen items at $3.47 per dozen but are given a price break (lower price) when you
about especially by purchase by the gross (12 dozen or 144 each), which gives you an economy of scale for
producing or selling purchasing more than one unit. Presume that purchasing by the gross (12 dozen) the price
goods in large quantities. is $37.48. The price per unit drops to $3.123, saving the buyer approximately 35¢ per unit.
The ability to purchase
large amounts of
materials reduces the No discount
cost per unit. Typically, a 1 unit costs $3.47 This three dot
company that achieves 12 units cost $41.64 without discount. triangle symbol means
economies of scale “Therefore” and is a
lowers the average cost With discount (an economy of scale) logic statement; such as
per unit through A = B and B = C,
increased production 12 units cost $37.48
since fixed costs are 1 unit costs ($37.48 ÷ 12 =) $3.12 Therefore ( )
shared over an A = C.
increased number of
goods. CHECKING ACCOUNTS
Those who deposit funds in checking accounts are called depositors. The depositors
have the right to write checks against their accounts ordering the financial institution to
make specific payments. The depositor who writes (draws) the check against his or her
account is the drawer. Refer to figure 3.7; The bank that is ordered to make payment is the
drawee. The person or company to whose order the certain sum of money is payable is the
payee.
Funds being deposited are usually accompanied by a printed form called a deposit slip.
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