Business Mathematics and Statistics

Jason (nyx126@163.com)ZJBTI

Personal Information

Office: 15C6　　Cell Phone: 13185912679QQ: 502693821Email: nyx126@163.com

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