BUSINESS MATHEMATICS

ABM 11-2 | Mr. Christian Cadena | FOURTH QUARTER | FORMULA/s

MARKUP BASED ON SELLING PRICE

MARKUP

Markup
WHAT FORMULA TO BE USED IN
𝑴𝒖 = 𝒓𝒎𝒖 𝒙 𝑺𝒑
MARKUP?
Formula(1):
Selling Price
𝐌𝐮 = 𝐒𝐩 − 𝐂 𝐶
Sp= 1−𝑟𝑚𝑢
Formula(2):
𝐌𝐮 = 𝑬 + 𝐏 where;
𝐒𝐩 = Selling Price
where; 𝐌𝐮 = Markup
𝐒𝐩 = Selling Price 𝒓𝒎𝐮 = Rate of markup
C = Cost C = Cost
E = Expenses
P = Profit
MARKDOWN
WHAT FORMULA TO BE USED IN
SELLING PRICE?
WHAT FORMULA TO BE USED?
Formula:
𝐒𝐩 = 𝐂 + 𝐄 + 𝐏
Formula(1):
𝑴𝒅 = 𝑺𝒐𝒑 − 𝑺𝒏𝒑
where;
Formula(2):
𝑺𝒑 = Selling Price
𝑴𝒅 = 𝒓𝒎𝒅 𝑿 𝑺𝒐𝒑
C = Cost
Formula(3):
E = Expenses
𝑀𝑑
P = Profit 𝑟𝑚𝑑 = 𝑆𝑜𝑝

MARKUP BASED ON COST New Selling Price

Markup Formula:
𝑴𝒖 = 𝒓𝒎𝒖 𝒙 𝑪 𝐒𝐧𝐩 = 𝐒𝒐𝐩(𝟏 − 𝒓𝒎𝒅)
Selling Price
𝑺𝒑 = 𝑪(𝟏 + 𝒓𝒎𝒖)
Where;
Where; 𝑺𝒐𝒑 = 𝑶𝒓𝒊𝒈𝒊𝒏𝒂𝒍 𝑺𝒆𝒍𝒍𝒊𝒏𝒈 𝑷𝒓𝒊𝒄𝒆
𝐒𝐩 = Selling Price 𝑴𝒅 = 𝑴𝒂𝒓𝒌𝒅𝒐𝒘𝒏
𝐌𝐮 = Markup 𝑺𝒏𝒑 = 𝑵𝒆𝒘 𝑺𝒆𝒍𝒍𝒊𝒏𝒈 𝑷𝒓𝒊𝒄𝒆
𝒓𝒎𝐮 = Rate of markup 𝒓𝒎𝒅 = 𝑹𝒂𝒕𝒆 𝒐𝒇 𝒎𝒂𝒓𝒌𝒅𝒐𝒘𝑛
C = Cost
BUSINESS MATHEMATICS
ABM 11-2 | Mr. Christian Cadena | FOURTH QUARTER | FORMULA/s

INSTALMENT PURCHASES
SALES COMMISSION
WHAT IS THE FORMULA OF INTEREST?
WHAT FORMULA TO BE USED IN
STRAIGHT COMMISSION? Formula:
𝑰 = 𝑷𝒓𝑡
Formula:
𝑪𝒐𝒎 = 𝑺 𝑿 𝒓𝒄𝒐𝒎 Where;
Where; 𝑰 = 𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕
𝑪𝒐𝒎 = 𝐴𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 𝑷 = 𝐏𝐫𝐢𝐧𝐜𝐢𝐩𝐚𝐥
𝑺 = 𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑟 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠𝑎𝑙𝑒𝑠 𝒓 = 𝒓𝒂𝒕𝒆
𝒓𝒄𝒐𝒎 = 𝑟𝑎𝑡𝑒 𝑜𝑟 𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 𝒕 = 𝒕𝒊𝒎𝒆

WHAT FORMULA TO BE USED IN 𝑻𝒓𝒖𝒆 𝒊𝒏𝒕𝒆𝒓𝒆𝒔𝒕 𝒓𝒂𝒕𝒆=

GRADUATED COMMISSION? 2 𝑋 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑃𝑎𝑦 𝑝𝑒𝑟𝑖𝑜𝑑𝑠 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟 𝑋 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡
𝑃𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 𝑋 (𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑎𝑦𝑚𝑒𝑛𝑡𝑠 +1
Formula:
𝑪𝒐𝒎 = (𝑺𝟏 𝑿 𝒓𝒄𝒐𝒎𝟏 ) + (𝑺𝟐 𝑿 𝒓𝒄𝒐𝒎𝟐
) + ⋯ + (𝑺𝒌 𝑿 𝒓𝒄𝒐𝒎) SALARIES AND WAGES

Where;
HOW TO COMPUTE THE GROSS PAY?
𝑪𝒐𝒎 = 𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛
𝑺𝒌 = 𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑟 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠𝑎𝑙𝑒𝑠
𝑮𝒓𝒐𝒔𝒔 𝑷𝒂𝒚 = 𝐏𝐚𝐲 𝐏𝐞𝐫 𝐏𝐞𝐫𝐢𝐨𝐝 𝐗 𝐍𝐮𝐦𝐛𝐞𝐫 𝐨𝐟
𝒓𝒄𝒐𝒎 = 𝑟𝑎𝑡𝑒 𝑜𝑟 𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛
𝐏𝐞𝐫𝐢𝐨𝐝𝐬 𝐖𝐨𝐫𝐤𝐞𝐝

WHAT FORMULA TO BE USED IN

HOW TO COMPUTE THE FIXED AMOUNT
COMMISSION PLUS OVERRIDE?
RECEIVED BY THE SALARIED
EMPLOYEES?
Formula:
𝑪𝒐𝒎 = 𝑺 𝑿 𝒓𝒄𝒐𝒎
𝐴𝑁𝑁𝑈𝐴𝐿 𝑆𝐴𝐿𝐴𝑅𝑌
WEEKLY SALARY=
52
Where;
𝑪𝒐𝒎 = 𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛
𝑺𝒌 = 𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑟 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠𝑎𝑙𝑒𝑠 𝐴𝑁𝑁𝑈𝐴𝐿 𝑆𝐴𝐿𝐴𝑅𝑌
BI-WEEKLY SALARY=
𝒓𝒄𝒐𝒎 = 𝑟𝑎𝑡𝑒 𝑜𝑟 𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 26

𝐴𝑁𝑁𝑈𝐴𝐿 𝑆𝐴𝐿𝐴𝑅𝑌
MONTHLY SALARY=
12
COMPUTING THE GROSS PAY
INTEREST ON PERSONAL LOANS AND
BUSINESS MATHEMATICS
ABM 11-2 | Mr. Christian Cadena | FOURTH QUARTER | FORMULA/s

HOW TO COMPUTE THE GROSS PAY for

HOURLY WAGE?

𝑮𝒓𝒐𝒔𝒔 𝒑𝒂𝒚 = 𝑹𝒂𝒕𝒆 𝑷𝒆𝒓 𝑯𝒐𝒖𝒓𝑿 𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇

𝑯𝒐𝒖𝒓𝒔 𝑾𝒐𝒓𝒌𝒆𝐝

HOW TO COMPUTE THE OVERTIME PAY?

𝐓𝐢𝐦𝐞 𝐚𝐧𝐝 𝐚 𝐡𝐚𝐥𝐟

= 𝟏. 𝟓 𝐗 𝐑𝐞𝐠𝐮𝐥𝐚𝐫 𝐫𝐚𝐭𝒆
𝑫𝒐𝒖𝒃𝒍𝒆 𝑻𝒊𝒎𝒆 𝒓𝒂𝒕𝒆
= 𝟐 𝑿 𝑹𝒆𝒈𝒖𝒍𝒂𝒓 𝒓𝒂𝒕𝒆
𝑮𝒓𝒐𝒔𝒔 𝒑𝒂𝒚
= 𝑹𝒆𝒈𝒖𝒍𝒂𝒓 𝒑𝒂𝒚 + 𝑶𝒗𝒆𝒓𝒕𝒊𝒎𝒆 𝒑𝒂𝒚

Straight Commission

Formula:
𝑮𝒓𝒐𝒔𝒔 𝑷𝒂𝒚 = 𝑨𝒎𝒐𝒖𝒏𝒕 𝒐𝒇 𝑺𝒂𝒍𝒆𝒔 𝑿 𝑹𝒂𝒕𝒆
𝒐𝒇 𝑪𝒐𝒎𝒎𝒊𝒔𝒔𝒊𝒐𝐧

Salary Plus Commission

Formula:
𝑮𝒓𝒐𝒔𝒔 𝑷𝒂𝒚 = 𝑺𝒂𝒍𝒂𝒓𝒚 + 𝑪𝒐𝒎𝒎𝒊𝒔𝒔𝒊𝒐𝒏

Salary Plus Bonus

Formula:
𝑮𝒓𝒐𝒔𝒔 𝑷𝒂𝒚 = 𝑺𝒂𝒍𝒂𝒓𝒚 + 𝑩𝒐𝒏𝒖𝒔