Friday, October 17, 2008
discount
last week i go to jusco, i found that so many discount, like 20% to 70% discount. but i did not buy anything, i just look around. maybe the discount made because of " hari raya puasa". so people can buy thing at the cheaper price.
biz math
i like this subject but i have problem in remembering the formulae. to answer the question must have formulae, different question have different formulae. so have to look the formulae in the text book.
Monday, October 6, 2008
biz math : CHAPTER 7
7.3 BANK DISCOUNT
D = sdt
Where D = bank discount
S = amount of maturity value
d = discount rate
t = term in discount in years
the proceeds. P are computed as follow
bank proceeds = maturity value – bank discount
P = s – d
P = s – sdt
D = sdt
Where D = bank discount
S = amount of maturity value
d = discount rate
t = term in discount in years
the proceeds. P are computed as follow
bank proceeds = maturity value – bank discount
P = s – d
P = s – sdt
biz math : CHAPTER 6 – MARK UP AND MARK DOWN
Mark up
- the cost price is the original price of the goods paid by the retailer must add an additional amount called mark up to the cost of the goods to cover the business expenses and to generate a profit. The sum of this cost and mark up is the retail (selling) price. In other words, mark up (gross profit or gross margin) is the difference in the retail price and the cost price, that is
R = C+M where R = retail price / selling price
C = cost price
M = mark up / gross profit
Mark down
- mark down is a decrease in the selling price. It is the difference in the old retail price and the new retail price that is
MD = OP – NP
Where MD = mark down
OP = old retail price
NP = new retail price
Price are sometimes marked down due to many reasons. To face stiff competition, to encourage purchases in bulk, to dispose off old, damaged or obsolete stocks and to close a line of merchandise.
Profit and loss
If M more than OE, net profit is obtained
If M less than OE, loss is incurred
Where M = mark up
OE = overhead expenses
Breakeven price – retail price just covers the cost price and the operating expenses, then it does not make any profit nor incur any loss
Breakeven price = cost price + operating expenses
The mark up equation, retail price = cost + mark up can be expressed as follow
Retail price = cost + net profit + operating expenses or in abbreviation
R = C + NP + OE
- the cost price is the original price of the goods paid by the retailer must add an additional amount called mark up to the cost of the goods to cover the business expenses and to generate a profit. The sum of this cost and mark up is the retail (selling) price. In other words, mark up (gross profit or gross margin) is the difference in the retail price and the cost price, that is
R = C+M where R = retail price / selling price
C = cost price
M = mark up / gross profit
Mark down
- mark down is a decrease in the selling price. It is the difference in the old retail price and the new retail price that is
MD = OP – NP
Where MD = mark down
OP = old retail price
NP = new retail price
Price are sometimes marked down due to many reasons. To face stiff competition, to encourage purchases in bulk, to dispose off old, damaged or obsolete stocks and to close a line of merchandise.
Profit and loss
If M more than OE, net profit is obtained
If M less than OE, loss is incurred
Where M = mark up
OE = overhead expenses
Breakeven price – retail price just covers the cost price and the operating expenses, then it does not make any profit nor incur any loss
Breakeven price = cost price + operating expenses
The mark up equation, retail price = cost + mark up can be expressed as follow
Retail price = cost + net profit + operating expenses or in abbreviation
R = C + NP + OE
biz math : CHAPTER 5 – TRADE AND CASH DISCOUNT
Trade discount = list price – net price
Amount of trade discount = list price x trade discount rate
Formula for calculating net price
NP = L(1-r)
NP = net price
L = list price
r% = trade discount
from net price = list price – trade discount, we get
NP = L – Lr
NP = L (1- r)
Multiple discounts are offered to the retailers on the same goods by the manufacturers or wholesalers. It is termed as chain discount or series discount
Formula for calculating the net price for a chain discount
NP = L (1- r1)(1- r2)(1- r3)
Single discount equivalent
- a single discount equivalent is a single which is equivalent to a chain discount, the single discount equivalent, r, for a chain discount of r1, r2 and r3 is given by
r = 1- (1-r1)(1-r2)(1-r3)
trade and cash discount
Amount of trade discount = list price x trade discount rate
Formula for calculating net price
NP = L(1-r)
NP = net price
L = list price
r% = trade discount
from net price = list price – trade discount, we get
NP = L – Lr
NP = L (1- r)
Multiple discounts are offered to the retailers on the same goods by the manufacturers or wholesalers. It is termed as chain discount or series discount
Formula for calculating the net price for a chain discount
NP = L (1- r1)(1- r2)(1- r3)
Single discount equivalent
- a single discount equivalent is a single which is equivalent to a chain discount, the single discount equivalent, r, for a chain discount of r1, r2 and r3 is given by
r = 1- (1-r1)(1-r2)(1-r3)
trade and cash discount
biz math : CHAPTER 2 – SIMPLE INTEREST
Interest (unless stated otherwise) ussually expressed as per cent per annum. There are two type of interest : simple interest and compound interest.
Simple interest formula:
- simple interest formula is the interest calculated on the original principal for the entire period, it is borrowed or invested. It is the product of the principle multiplied by the rate and time, this may stated as the formula.
I = Prt
Where I = simple interest
P = principle
r = rate of simple interest
t = time or time in years
simple amount formula
- the simple amount is the sum of the original principle and the interest earned. The simple amount formula is given as
S = original principle + interest earned
S = P + Prt
Four basic concepts
1. exact time - it is the number of days between two given date
2. approximate time - it assumes amonth has 30 days in the calculation of
Number of days between two given dates.
3. ordinary simple interest - in calculating ordinary simple interest, we use a 360
day year
4. exact simple interest - this uses a 365/366 day year for interest computation
Simple interest formula:
- simple interest formula is the interest calculated on the original principal for the entire period, it is borrowed or invested. It is the product of the principle multiplied by the rate and time, this may stated as the formula.
I = Prt
Where I = simple interest
P = principle
r = rate of simple interest
t = time or time in years
simple amount formula
- the simple amount is the sum of the original principle and the interest earned. The simple amount formula is given as
S = original principle + interest earned
S = P + Prt
Four basic concepts
1. exact time - it is the number of days between two given date
2. approximate time - it assumes amonth has 30 days in the calculation of
Number of days between two given dates.
3. ordinary simple interest - in calculating ordinary simple interest, we use a 360
day year
4. exact simple interest - this uses a 365/366 day year for interest computation
Sunday, August 3, 2008
first article
I learn about blog today...how to creat my own blog for learning and this is for business mathematics
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