Business Math

Business Math

​Review Part I

by jay yasis

​Target Competencies

​At the end of the lesson, students will be able to:

​

​* Solve and understand single discount and discount series; and

​

​* Analyze Profit, Loss, and Break Even;

​

Open Ended

Why manufacturers give discounts to their buyers/retailers?

Multiple Choice

Which of the following statement illustrate discount.

• The Infinity mall offers 3 days 20% off to all items.

• Mang Ambo offer his last kilo of grapes for 100 pesos, its origina price is 150.

• Kristine raised the cost of flower bouquet by 10% due to coming holiday.

• All of the above

Open Ended

How much would be the amount of discount for a bag with a list price of 500 pesos subject to 10% discount?

​How much would be the amount of discount for a bag with a list price of 500 pesos subject to 10% discount?

​

​Solution:

​Given: Discount rate = 10% ; List price = 500

​

​Formula: Discount = List price * Discount rate

​Discount = 500 * 10% (0.10)

​Discount = 50

Open Ended

​How much would be the discounted price for a bag with a list price of 500 pesos subject to 10% discount?

​How much would be the discounted price for a bag with a list price of 500 pesos subject to 10% discount?

​

​Solution:

​Given: Discount rate = 10% ; List price = 500

​Formula: Discount = List price * Discount rate

​Discount = 500 * 10% (0.10)

​Discount = 50

​

​Discounted price = List price - amount of discount

​Discounted price = 500 - 50

​Discounted price = 450

Open Ended

What is the discount rate of the product if it sells at 250 pesos and sold at 150 pesos?

What is the discount rate of the product if it sells at 250 pesos and sold at 150 pesos?

​

​Solution:

​Given: Amount of discount= (250 - 150) ; List price = 250

​

​Formula: Discount rate = (Amount of discount / list price) * 100

​Discount rate = (100 / 250) * 100

​Discount rate = 0.4 * 100

​Discount rate = 40%

Open Ended

How much is the amount of discount of a cellular phone listed at 8, 000 if you are given 10% and 5% discount?

How much is the amount of discount of a cellular phone listed at 8, 000 if you are given 10% and 5% discount?

​Solution:

​Given: Discount rate 1= 10% ; Discount rate 2 = 5% ; List price = 8, 000

​Formula: Discount 1 = List price * discount rate

​Discount 1 = 8, 000 * 0.10

​Discount 1 = 800

​Discount 2 = (List price - discount 1) * discount rate

​Discount 2 = (8,000 - 800) * 0.05

​Discount 2 = 7, 200 * 0.05

​Discount 2 = 360

​Amount of discount = discount 1 + discount 2

​Amount of discount = 1, 160

Open Ended

How much is the discounted price of a cellular phone listed at 8, 000 if you are given 10% and 5% discount?

How much is the discounted price of a cellular phone listed at 8, 000 if you are given 10% and 5% discount?

​Solution:

​Given: Discount rate 1= 10% ; Discount rate 2 = 5% ; List price = 8, 000

​Formula: Discount 1 = List price * discount rate

​Discount 1 = 8, 000 * 0.10

​Discount 1 = 800

​Discount 2 = (List price - discount 1) * discount rate

​Discount 2 = (8,000 - 800) * 0.05

​Discount 2 = 7, 200 * 0.05

​Discount 2 = 360

​Amount of discount = discount 1 + discount 2

​Amount of discount = 1, 160

DP = List price - discount

​DP = 8,000 - 1,160

​DP = 6, 840

Poll

A notebook was bought at 14.00 from the suppliers. It was sold to the customer at 18.00, however, to increase sales a 10% discount was offered. The situation shows __________.

• Profit

• Break-Even

• Loss

Open Ended

A notebook was bought at 14.00 from the suppliers. It was sold to the customer at 18.00, however, to increase sales a 10% discount was offered. How much is the projected profit for each notebook?

A notebook was bought at 14.00 from the suppliers. It was sold to the customer at 18.00, however, to increase sales a 10% discount was offered. How much is the projected profit for each notebook?

​Solution:

​Given: Discount rate = 10% ; Cost (from supplier) = 14 ; SP = 18

​Formula: Discount = SP * discount rate

​Discount = 18 * 0.10

​Discount = 1.80

​

Profit = Revenue - Expenses

Profit = (18 - 1.80) - 14

​Profit = 16.2 - 14

​Profit = 2.20

Open Ended

Jay buys a local brand of watch from a supplier at ₱ 500.00 each. He sells them in his store at a regular price of ₱ 800.00. In operating his watch store, he also incurred other expenses like rent of space at ₱ 3,000.00 and salary of his worker for ₱ 5,000.00 during the month.  If during the month of December, Jay sells 20 units of watches, what is the profit he gained or the loss he incurred in this transaction?

Jay buys a local brand of watch from a supplier at ₱ 500.00 each. He sells them in his store at a regular price of ₱ 800.00. In operating his watch store, he also incurred other expenses like rent of space at ₱ 3,000.00 and salary of his worker for ₱ 5,000.00 during the month.  If during the month of December, Jay sells 20 units of watches, what is the profit he gained or the loss he incurred in this transaction?

Given: VC = 500 ; FC = 5000 + 3000 ; SP = 800

​Sales = No of sold item * SP

​Sales = 20 * 800

​Sales = 16, 000

​BE Analysis = Revenue - Expenses

​BE Analysis = 16, 000 - ((500 * 20) + (5000 + 3000))

​BE Analysis = 16,000 - 18,000

​Loss = (2, 000)

​Directions: carefully analyze the data on the given table. Identify if the situation shows Profit, Loss or Break-even.