The ladder / Level 2 · Dealer Business math
Dealer business math: mixed quiz
Twelve questions across slabs, effective margin, warranty, workshop, channel finance, minimum stock and showroom ROI.
By Manoj Sahukar · October 2026 · 6 min read
12 questions drawn from all the dealer business-math topics, from basic to advanced. Each answer links back to its topic page if you want to revise.
How numbers are rounded on these pages. Calculations are done at full precision and rounded only at the end, half up. Rupee amounts are rounded to the nearest rupee unless shown with paise, in which case to the nearest paisa. Percentages are shown to two decimal places, days to one decimal place, and payback periods in years to two decimal places. Interest for a number of days uses a 365-day year (simple interest). Break-even job counts and units needed to cover a cost are rounded up to the next whole number. All examples and quiz questions are Hypothetical : they show the method, not real prices or rates.
Mixed quiz Pick an answer to see at once whether it is right, with a short explanation. Each question takes one try; your score appears at the end. No answers are sent anywhere. (Without JavaScript, open “Show answer” under each question.)
Target slabs · Intermediate Retrospective slabs: 95% to 99% of target pays 1%, 100% and above pays 2%, both on total purchases. Target ₹40,00,000; you are at ₹38,00,000. How much more incentive do you earn by buying ₹2,00,000 more?a ₹4,000 b ₹42,000 c ₹80,000 d ₹2,000
Show answer Answer: (b) ₹42,000
New payout 2% × ₹40,00,000 = ₹80,000; current 1% × ₹38,00,000 = ₹38,000; extra ₹42,000.
Why the other options are wrong:
(a) That pays 2% only on the extra ₹2 lakh; the slab is retrospective.(c) That is the whole new payout, not the extra.(d) That pays 1% on the extra only.Revise this topic →
Effective margin · Intermediate Quarter: sales ₹30,00,000, cost of goods sold ₹28,00,000, credit notes ₹45,000. Effective margin?a 6.67% b 8.75% c 1.50% d 8.17%
Show answer Answer: (d) 8.17%
(₹2,00,000 + ₹45,000) ÷ ₹30,00,000 × 100 = 8.17%.
Why the other options are wrong:
(a) That ignores the credit notes.(b) That divides by cost of goods sold: a markup.(c) That is the credit notes alone.Revise this topic →
Warranty claims · Intermediate Handling costs you ₹200 per claim. The brand rejects 15% of claims, and a rejected claim costs you ₹2,000. What is the expected unreimbursed cost per claim?a ₹2,200 b ₹200 c ₹300 d ₹500
Show answer Answer: (d) ₹500
₹200 + 15% × ₹2,000 = ₹200 + ₹300 = ₹500.
Why the other options are wrong:
(a) That assumes every claim is rejected.(b) That ignores rejected claims.(c) That is only the rejection part.Revise this topic →
Workshop · Intermediate Workshop fixed costs are ₹1,20,000 a month. Revenue per job is ₹1,000 and contribution per job is ₹600. Break-even jobs a month?a 120 b 200 c 2,000 d 100
Show answer Answer: (b) 200
₹1,20,000 ÷ ₹600 = 200 jobs.
Why the other options are wrong:
(a) That divides by revenue, not contribution.(c) A slip of ten.(d) Not fixed costs ÷ contribution.Revise this topic →
Stock financing · Intermediate A unit costing ₹50,000 is held 60 days. The first 15 days are interest-free; the rate is 12% a year. Interest on this unit?a ₹986.30 b ₹246.58 c ₹739.73 d ₹750.00
Show answer Answer: (c) ₹739.73
45 chargeable days: ₹50,000 × 12% × 45 ÷ 365 = ₹739.73.
Why the other options are wrong:
(a) That charges all 60 days.(b) That charges only the interest-free days.(d) That uses a 360-day year.Revise this topic →
Minimum stock · Intermediate Stock ₹15,00,000 (of which ₹9,00,000 is on channel finance), receivables ₹5,00,000, other brand credit ₹2,00,000. Working capital you must fund yourself?a ₹20,00,000 b ₹9,00,000 c ₹11,00,000 d ₹31,00,000
Show answer Answer: (b) ₹9,00,000
₹15,00,000 + ₹5,00,000 − ₹9,00,000 − ₹2,00,000 = ₹9,00,000.
Why the other options are wrong:
(a) That ignores all credit.(c) That forgets the other brand credit.(d) That adds the credit instead of subtracting it.Revise this topic →
ROI and payback · Intermediate Investment ₹35,00,000; cash inflows ₹8,00,000, ₹10,00,000, ₹12,00,000 and ₹15,00,000 in years 1 to 4. Payback period?a 3.00 years b 4.00 years c 3.33 years d 3.50 years
Show answer Answer: (c) 3.33 years
After year 3: ₹30 lakh back, ₹5 lakh to go. Year 4 brings ₹15 lakh. 3 + 5 ÷ 15 = 3.33 years.
Why the other options are wrong:
(a) After 3 years only ₹30 lakh is back.(b) Recovery finishes part-way through year 4.(d) That divides by one year's cash flow.Revise this topic →
Target slabs · Advanced An incremental slab pays 1% on purchases up to ₹20,00,000 and 2% only on purchases above that. You buy ₹25,00,000. What is the payout?a ₹50,000 b ₹25,000 c ₹30,000 d ₹10,000
Show answer Answer: (c) ₹30,000
1% × ₹20,00,000 + 2% × ₹5,00,000 = ₹20,000 + ₹10,000 = ₹30,000.
Why the other options are wrong:
(a) That applies 2% to everything, as a retrospective slab would.(b) That applies 1% to everything.(d) That leaves out the 1% on the first ₹20 lakh.Revise this topic →
Effective margin · Advanced Selling price ₹1,000. The brand raises your invoice cost from ₹930 to ₹940 but adds a 1% rebate on the invoice cost. What is your new effective margin?a 7.00% b 6.94% c 6.00% d 7.94%
Show answer Answer: (b) 6.94%
Net cost = ₹940 − 1% of ₹940 (₹9.40) = ₹930.60. Margin = ₹69.40 ÷ ₹1,000 = 6.94%, down from 7.00%.
Why the other options are wrong:
(a) The 1% rebate is on ₹940, not ₹1,000, so it does not fully replace the lost margin.(c) That ignores the rebate.(d) That counts the rebate twice, adding a further percentage point.Revise this topic →
Workshop · Intermediate 4 bays are available 8 hours a day for 25 days. Paid work used 560 bay hours. What is bay utilisation?a 30.00% b 142.86% c 70.00% d 7.00%
Show answer Answer: (c) 70.00%
Available = 4 × 8 × 25 = 800 hours. 560 ÷ 800 × 100 = 70.00%.
Why the other options are wrong:
(a) That is the unused share.(b) That divides the wrong way round.(d) A decimal slip.Revise this topic →
Stock financing · Basic Average stock is ₹40,00,000 and yearly cost of goods sold is ₹2,92,00,000. What are your inventory days?a 7.3 days b 50.0 days c 13.7 days d 49.3 days
Show answer Answer: (b) 50.0 days
₹40,00,000 ÷ ₹2,92,00,000 × 365 = 50.0 days.
Why the other options are wrong:
(a) That is how many times stock turns over in a year, not days.(c) That multiplies by 100 instead of 365.(d) That uses a 360-day year.Revise this topic →
ROI and payback · Advanced Fit-out ₹18,00,000 (depreciated straight line over 5 years), security deposit ₹7,00,000, working capital ₹15,00,000. Net profit after depreciation is ₹6,00,000 a year. ROI on total investment?a 33.33% b 24.00% c 15.00% d 18.18%
Show answer Answer: (c) 15.00%
Total investment = ₹40,00,000. ₹6,00,000 ÷ ₹40,00,000 × 100 = 15.00%.
Why the other options are wrong:
(a) That counts only the fit-out; deposit and working capital are investment too.(b) That uses cash flow (profit + depreciation); ROI uses net profit.(d) That leaves out the security deposit; it is money locked in too.Revise this topic →