Business Mathematics and Statistics Jason ZJBTI.
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Transcript of Business Mathematics and Statistics Jason ZJBTI.
Business Mathematics and Statistics
Jason ([email protected])ZJBTI
Personal Information
Office: 15C6 Cell Phone: 13185912679QQ: 502693821Email: [email protected]
What will we be expected to learn?
Course Description
1. Business Maths
2. Statistics
3. English
Course ArrangementProgress:
50 hrs 12.5 weeks
Assessment:
1. Daily performance (30%) 2. Final Examinations (70%) Tests (~2 hours) Class performance
(discussion, practice, assignments)
Business Maths 1. Basic Business Mathematics 2. The Time Value of Money
a. Simple Interestb. Compound Interestc. Annuitiesd. Discounted Cashflow Analysis
Statistics 1. Presentation of Data 2. Measures of Central Tendency
3. Measures of Dispersion4. The Normal Distribution5. Measures of Correlation and Regression6. Index Numbers7. Time Series Analysis
Suggested Further Reading Materials
1. Calculus
2. Linear Algebra
3. Probability and Statistics
4. Operational Research
Software
1. Excel
2. SPSS
3. SAS/STAT
4. Matlab
Topic 0 Preparation
1.Expressions
2.Calculation
Topic 1 Basic Business Maths
1.Mark-up
2.Margin
3.Markdown
4.Discount
5.Commission
6.Tax
7.GST*
What is the main concern of a company?
Profit
Profit = Selling Price - Cost Price
Topic 1 Basic Business Maths
1. Mark-up
An amount added to the cost price and is expressed as the percentage of the cost price
cost pricecost price
Mark-Up(%)=Profit
Cost Price
Selling Price-Cost PriceCost Price
Formula Transformation
SP= CP(1+MR)
CP=SP
1+MR
2. Margin
An amount added to the selling price and is expressed as the percentage of the selling priceselling price
selling price
Margin(%)=Profit
Selling Price
Selling Price-Cost PriceSelling Price
Formula Transformation
CP= SP(1-PM)
SP=CP
1-PM
3. Mark down
A reduction from the existing price.
Marked-Down Price=Original Price (1-MR)
4. Discount
A reduction on the selling price (list price).
Discounted Price=Selling Price (1-Discount Rate)
Compare:
Discount Discounted Price
Types of Discount
1. Cash Discount2. Trade Discount3. Chain Discount4. Volume Discount
Discount Price=Selling Price (1-Discount Rate)
1 2 3Discount Price=SP (1-DR ) (1-DR ) (1-DR )......
5. Commission
This is an incentive for a salesman to sell more, work harder.
Commission=Sales Commission Rate
CommissionSales=Commission Rate
1. Commission Only2. Retainer + Commission Total Remuneration (Earnings) =
Total Remuneration (Earnings) =
3. Multiple commission
(Sliding Scale of Commission)
S × CR
Types of Earning(3)
R + S × CR
You are offered the choice of being paid commission only at 10% on all sales or a salary of $1,000 per month plus commission of 5% on sales. Which would you choose?
Package 1: $18,000 × 10% = $1,800
Sales: $18,000 in a month
Package 2: $1,000 + $18,000 × 5% = $1,900 At what point can the two packages make
the same amount of earnings?S × 10% = $1,000 + S × 5%S = $20,000
The sales level at which it would make no difference which package you choose is called the Indifference Point.
Commission only OR Retainer + Commission
Indifference Point
6. Tax
PAYGGST
Company Tax
Australian Taxation Office State Administration of Taxation
A broad-based consumption tax (10%) on goods, services, and anything else, including imports, consumed in Australia. Paid by the final consumers.
There are exemptions for some items: most educational courses health food fresh food
GST
GST
2. Price(incGST) = Price(exGST) + GST= Price(exGST)(1+10%)1. GST = Price (exGST)×10%
3. Price(incGST) = Price(exGST) × 110% Price(incGST) = Price(exGST) + GST
= Price(exGST) + Price(exGST) ×10%
= Price(exGST) ×(1 + 10%)
= Price(exGST) ×110%
GST = Price(exGST) × 10%
1 P rice(incGST)11
Pr ice(incGST) 10%110%
14.G ST Price(incG ST )11
Company Tax = Taxable Profit ×30%
A Company is required to pay Company Tax at a Rate of 30% of Taxable Profit.
material
Company Tax
Calculate the tax based on the level or bracket of income the taxpayer is in.
PAYG (Pay As You Go)
Taxable Income Tax on this income$1 - $6,000 Nil$6,001 - $35,000 15c for each $1 over $6,000$35,001 - $80,000 $4,350 plus 30c for each $1 over $35,000$80,001 - $180,000 $17,850 plus 38c for each $1 over $80,000$180,001 and over $55,850 plus 45c for each $1 over $180,000