Business Mathematics PDF

Business Mathematics ENGR. OSCAR H. HALAMANI, JR.  Mark Up  Mark Down  Mark On  amount of money added to the cost to cover the operating expenses and provide a profit to the business.  money added to the material cost to obtain the selling price.  the difference between the selling price...

Business Mathematics ENGR. OSCAR H. HALAMANI, JR.  Mark Up  Mark Down  Mark On  amount of money added to the cost to cover the operating expenses and provide a profit to the business.  money added to the material cost to obtain the selling price.  the difference between the selling price and the cost of producing the product.  generally called margin or profit, since it is the amount beyond what is needed. Mark Up (MU) Selling Price (SP)  the price at which the items is actually sold. Cost of the Product (CP)  the price that includes all the expenses in the production of the product  a percentage of the cost to be added to determine the selling price of the product.  Based on Cost of Producing the Product  Based on Selling Price 1. PRIMAR Chicken depot sell a bag of fresh chicken to a retailer at P1,250 per bag. After a day of selling, the retailer has P1,525, How much profit does the retailer collect? Given: CP = P1,250 SP = P1,525 Required: MU MU = SP - CP MU = P1,525 - P1,250 MU = P275 Ans. 2. A contemporary mathematics workbok cost the bookstore owner P195 and maintain a margin of P 86. How much will be the selling price? Given: CP = P 195 MU = P 86 Required: SP MU = SP - CP SP = MU + CP SP = P 86 + P 195 SP = P281 Ans. 3. How much is the selling price of a monoblock table with a cost of P 530 if the desired mark up rate of 30%? Given: CP = P530 MUR = 30% = 0.30 Required: SP MU = MUR X CP MU = 0.30 (530) MU = P159 SP = MU + CP SP = P159 + P530 SP = P689 Ans. 4. A laser printing cost P8,750 is sold for P12,250. Find the mark up rate based on cost. Given: CP = P8,750 SP = P12,250 Required: MUR MU = SP - CP MU = P12,250 - P8,750 MU = P3,500 MUR = MU X 100 = 3,500 X 100 CP 8,750 MUR = 0.40 or 40% Ans. 5. A pair of running shoes is sold at P2,100 that has 60% mark up rate based on cost. What is the cost of the shoes? Given: SP = P2,100 MUR = 60% = 0.60 Required: CP MU = MUR X CP MU = 0.60 CP CP = SP - MU CP = P2,100 - 0.60CP CP + 0.60 CP = P2,100 1.60 CP = P2,100 CP = P1,312.50 Ans.  is a practice of lowering the regular price or original selling price of a certain products or goods  the difference between the regular selling price and the new price to be used Purpose  to attract more customers and more sales  to be within the competitor’s price  to reduce large inventories  to clear old and slow moving stocks Mark Down (MD) Original Selling Price (OSP)  the price at which the item was originally sold Reduced Selling Price (RSD)  the discounted price of the item = a percentage drop from the original selling price. Original Selling Price can be calculated using 1. A branded DVD Player has a crossed marked price of P4,850 on its tag but a clearer price is now written below to be P3,995. How much money did the price dropped? Given: OSP = P4,850 RSP = P3,995 Required: MD MD = OSP - RSP MD = P4,850 - P3,995 MD = P 855 Ans. 2. A maid of honor gown has a a mark down of P375 and the couturier receives P2,500. What is the original price of the gown? Given: MD = P375 RSP = P2,500 Required: OSP MD = OSP - RSP OSP = MD + RSP OSP = P375 + P2,500 OSP = P2,875 Ans. 3. How much mark down percentage was applied to a jacket whose previous price is P790 and is now sold for P650? Given: OSP = P790 RSP = P650 Required: MDR MD = OSP - RSP MD = P790 - P650 MD = P140 MDR = MD X 100 = P140 X 100 OSP P790 MDR = 0.1772 or 17.72% Ans. 4. The store put their appliances on sale. What are the Mark Down and the Reduced Selling Price of a SMART TV that has a regular price of P25,800 and is on sale for 25% off? Given: OSP = P25,800 MDR = 25% = 0.25 Required: MD & RSP MD = MDR X SP MD = 0.25 (P25,800) MD = P6,450 Ans. RSP = OSP - MD RSP = P25,800 - P6,450 RSP = P19,350 Ans.  the amount in which the regular or selling price is further increased.  the temporary increase on a certain products to take advantage of the high demand during peak season.  the difference between the new adjusted price and the regular selling price. Purpose  increase of price in the market  the supply is insufficient Mark On (MO) Increased Selling Price (ISP)  the increased price of the item. Previous Selling Price (PSP)  the price at which the item was previously sold. = a percentage increase from the previous selling price of the product. Increased Selling Price can be calculated using 1. A week before February 14, red roses was sold at P796 per dozen. On Valentines Day it is being sold at P1,025 per dozen. How high does the price increased? Given: PSP = P 796 ISP = P1,025 Required: MO MO = ISP - PSP MO = P1,025 - P 796 MO = P 229 Ans. 2. A tour package per person to Bohol cost P6,750 during ordinary month and during the vacation months, the same package has a mark on of P1,250. How much will it cost a person to travel to Bohol during vacation months? Given: PSP = P6,750 MO = P1,250 Required: ISP MO = ISP - PSP ISP = MO + PSP ISP = P1,250 + P6,750 ISP = P8,000 Ans. 3. A fast selling item in a department store is currently being sold for P680. Because of high demand for the item, the store decided to apply a mark on percentage of 20%. Find the new selling price of the item. Given: PSP = P680 MOR = 20% = 0.20 Required: ISP MO = MOR X PSP MO = 0.20 (P680) = P136 ISP = MO + PSP ISP = P136 + P680 ISP = P816 Ans. 4. Mang Jose observed tat market goers prefer to buy fish from him because there is an undersupply of meat in the market this season. The cost of bangus is P100 per kilo with a 35% mark up rate. If Mang Jose decided to increase the selling price by P20, what is the new selling price of the bangus? Given: CP = P100 MUR = 35% = 0.35 MO = P20 Required: ISP MU = MUR X CP MU = 0.35 (P100) MU = P35  MU = MUR X CP MU = 0.35 (P100) MU = P35 SP = MU + CP SP = P35 + P100 SP = P135 PSP = P135 ISP = MO + PSP ISP = P20 + P135 ISP = P155 Ans.  deduction of all the cost incurred until the product is made from how uch the product will be price in the market.  amount the producer need in favor of its investment  maximum amount added to the production cost to make the selling price attractive and reasonable to the buyer  can be the excess of the selling price of the product  marked the product for sale at a higher price when stock is limited and the demand is high  some amount added to the regular price that cause an increase to the previous profit  the increase in the present selling price is due to the increase in the market price on the same product  there are many reason to justify pricing but it can not be the will of the producer  Gross margin is the last part that we need to understand before procing the product.  The cost of product is the only one standard before a margins can be added to determine the selling price.  High cost of producing the product will result into a smaller margin and affecting sales performance of the product in the market. Selling price can not be mark down.  Manufacturers make some investment of buying some of its raw materials months ahead of time just to take it to the lowest price possible. This will give a high margin on its product and goos selling price  Bidding of the lowest raw material cost is used by some producers to ensure lower production cost. It will ensure high margin on its product. Marketable selling price.  Amount of margin may usually vary depending on the type of establishment like a cafeteria, restaurant, fastfood. Is there any Question? Next Meeting?