BUSINESS MATHEMATICS & STATISTICS. LECTURE 15 Review Lecture 14 Financial Mathematics Part 2.
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Transcript of BUSINESS MATHEMATICS & STATISTICS. LECTURE 15 Review Lecture 14 Financial Mathematics Part 2.
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BUSINESS MATHEMATICS
&
STATISTICS
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LECTURE 15Review Lecture 14
Financial Mathematics Part 2
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PARTIAL PAYMENTS
You owe Rs. 40,000. Your terms were 3/10
Within 10 days you sent in a payment of Rs. 10,000 How much is your new balance?
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MARKETING
TERMSManufacturer Cost
The price charged to middlemen in ‘The Distribution Chain’
Distributor>Wholesaler>RetailerSelling Price
The price charged to Consumers by Retailers
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MARKETINGGross Sales Rs X Less: Cost of Good Sold X Gross Profit X
(Margin/MarkUp) Less: Operating Expenses X Net Profit (Income) Rs. X
Operating Expenses Expenses the company incurs in operating the
business,e.g. rent, wages and utilities
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SELLING PRICE
Selling Price (S) = Cost (C) + Markup (M)Example
A computer’s cost = 9,000 + 3,000 Rs.
= 12,000 Rs.
Rs. 3,000 is margin available to meet Expenses and make a Profit
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MARKUP
If the MarkUp is to be 33% on Cost then…Selling Price (S) = Cost (C) + Markup (M)
133% = 100% + 33%Cost is 100% the Base
% MarkUp is the Rate
Rs. MarkUp is the Portion
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MARKUP
You buy candles for Rs. 10 You plan to sell them for Rs.15 What is your Rs. markup?
What is your percent markup on cost?
Selling price – cost= 15 – 10
= Markup = 5 Rs.
% markup = 5/10*100 = 50%
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Selling Price
Fawad’s Appliances bought a sewing machine for Rs. 1,500
To make the desired profit, he needs a 60% markup on Cost.
What is Fawad’s Rs. markup?
What is his Selling price?
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Selling Price
Rs. Markup = 1,500 x 0.6= 900 Rs.
Selling Price = 1,500 + 900 = 2,400 Rs.
Or= 1,500 x (1+0.6)
= 1,500 x 1.6= 2,400 Rs.
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Rs. MarkUp and Percent on Cost
Tanveer’s flower business sells floral arrangements for Rs.35.
To make his desired profit, Tanveer needs a 40% markup on cost.
What do the flower arrangements cost Tanveer?
What is the Rs. markup?
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Rs. MarkUp and Percent on Cost
S = C + M
35 = C + .40(C)
35 = 1 .40(C)
C= 35/1,4= 25 Rs.
M = 25 x 0.4
= 10 Rs.
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MARKUP AGAIN
You buy candles for 2 Rs. You plan to sell them for 2.50 RsWhat is your Rs. markup?
What is your percent markup on Selling Price?
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MARKUP AGAIN
Rs. Markup = 2.5 – 2 = 0.5 Rs.
Percent markup on Selling Price = (0.5/2.5) x 100
= 20%
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Selling Price Again
Fawad’s Appliances bought a sewing machine for Rs. 1,500
To make the desired profit, he needs a 60% markup on Selling price
What is Fawad’s Rs. markup?
What is his Selling price?
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Selling Price
Selling Price S = 1,500 + 0.6SS-0.6S = 1,500 Rs.
Or0.4S= 1,500 = 3,750 Rs
Rs. Markup = 3,750 x 0.6= 2,250 Rs.
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Rs. MarkUp and Percent on Cost
Tanveer’s flower business sells floral arrangements for Rs. 35.
To make his desired profit, Tanveer needs a 40% markup on selling price
What do the flower arrangements cost Tanveer?
What is the Rs. markup?
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Selling Price
Selling Price =35 = C + 0.4x 35
35= C + 14C = 35 – 14
= 21 Rs.Or
C= S- 0.4 S= 0.6 S = 0.6 x 35= 21 Rs.
Rs. Markup = 35 x 0.4 = 14 Rs.
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Converting MarkupsConverting 50% MU on Cost
= ? % MU on SFormula
% Markup on Selling Price (mus) to % Markup on Cost (muc)=
% markup on C1 + % markup on C
mus = muc/1+muc= 0.5/1+0.5 = 0.5/1.5
mus= 0.3333 = 33.33%
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Converting Markups
Converting 33.33% MU on Sale = ? % MU on C
Formula% Markup on Selling Price (mus) to
% Markup on Cost (muc)=% markup on S
1 - % markup on S
muc = mus/1-mus= 0.3333/1 – 0.333
= 0.3333/0.6666 = 0.5= 50%
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BUSINESS MATHEMATICS
&
STATISTICS
![Page 28: BUSINESS MATHEMATICS & STATISTICS. LECTURE 15 Review Lecture 14 Financial Mathematics Part 2.](https://reader035.fdocuments.in/reader035/viewer/2022062217/56649efe5503460f94c12d36/html5/thumbnails/28.jpg)
MARKDOWNFormula
%Markdown = Rs. Markdown Selling Price (original)
Store A marked down a Rs. 500 shirt to Rs. 360
What is the Rs. Markdown
What is the %markdown?
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MARKDOWNRs. Markdown = Old S – New S = Rs.
500 – Rs. 360 = Rs. 140 Markdown%Markdown = Markdown
Old S
= 14 50
= 0.28 = 28 %
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MARKDOWNA variety of plastic jug was bought for
Rs. 57.75 was marked up 45%
of the Selling Price
When the jugs went out of production,they were marked down 40%
What was the Sale Price after the 40% markdown?
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MARKDOWNSelling price = 100
Markup = 45Cost = 55
Original Sale price= (100/55) x 57.75= 105
Markdown = 40 % = 0.4Rs. Markdown = 105 x 0.4 = 42
Reduced sale= 105 - 42= 63 Rs.
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BUSINESS MATHEMATICS
&
STATISTICS