RATIO
is applied not just in activities that involve simple day-to-day comparison but more importantly in business comparative analysis. Ratio analysis is one of the techniques that are used in a company’s financial statements such as balance sheets and profit and loss statements to provide users relevant information about the company’s liquidity, use of leverage, asset management, cost control, and
profitability and growth. crisis.
A Ratio is a comparison of two numbers using division. It is an indicated quotient of two quantities of the same kind, expressed in the same unit of measure. If you compare the numbers a and b, then the ratio of a to b is written as:
a : b or a/b
BUYING AND SELLING
People who are engaged in business must make lots of calculations and many types of business engage in buying and selling activities. To maximize their profit, manufacturers have to look for reliable suppliers pf their raw materials at the lowest possible price. Likewise, retailers also scout for wholesalers or manufacturers that sell their goods at a very minimal cost.
PRICING
- MARK ON
- MARK UP
- MARK DOWN
PROFIT OR LOSS
- Income statement
- Break even analysis
- Break even point
DISCOUNT
- – Single Trade Discount
– Multiple Trade Discount
– Cash Discounts
– Type of Cash Discounts
PRICING
Sp=C+E+P
where
Sp= Selling Price > Market price that a product will be sold
C= Cost >Actual price that the product bought from the manufacturer or wholesaler
E= Expenses
P= Profit
MARK UP
Increase in the original size.
PROFIT MARGIN VS. MARK UP
The main difference between the two is that profit margin refers to sales minus the cost of goods sold while markup to the amount by which the cost of a good is increased in order to get to the final selling price
MARK DOWN
It is the reduction in the original price
-Promotion Strategies
-Trend changes
-Seasonal changes
-Surplus of products
“So many things are possible just as long as you don’t know they’re impossible.”
Norton Juster
Business math 