Business Mathematics and Statistics
Jason (nyx126@163.com)
ZJBTI
Personal Information
Office: 15C6
Cell Phone: 13185912679
QQ: 502693821
Email: nyx126@163.com
Course Description
What will we be expected to learn?
1. Business Maths
2. Statistics
3. English
Course Arrangement
Progress:
50 hrs 12.5 weeks
Assessment:
1. Daily performance (30%)
2. Final Examinations (70%)
 Tests
 Class performance
(discussion, practice, assignments)
(~2 hours)
Business Maths
1. Basic Business Mathematics
2. The Time Value of Money
a. Simple Interest
b. Compound Interest
c. Annuities
d. Discounted Cashflow Analysis
Statistics
1. Presentation of Data
2. Measures of Central Tendency
3. Measures of Dispersion
4. The Normal Distribution
5. Measures of Correlation and Regression
6. Index Numbers
7. 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*
Topic 1 Basic Business Maths
What is the main concern of a company?
Profit
Profit = Selling Price - Cost Price
1. Mark-up
An amount added to the cost price and is
expressed as the percentage of the cost price
Profit
Mark-Up(%)=
Cost Price
Selling Price-Cost Price

Cost Price
Formula Transformation
SP= CP(1+MR)
SP
CP=
1+MR
2. Margin
An amount added to the selling price and is
expressed as the percentage of the selling price
Profit
Margin(%)=
Selling Price
Selling Price-Cost Price

Selling Price
Formula Transformation
CP= SP(1-PM)
CP
SP=
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.
2.
3.
4.
Cash Discount
Trade Discount
Chain Discount
Volume Discount
Discount Price=Selling Price  (1-Discount Rate)
Discount Price=SP  (1-DR1 )  (1-DR 2 )  (1-DR 3 )......
5. Commission
This is an incentive for a salesman to sell more,
work harder.
Commission=Sales  Commission Rate
Commission
Sales=
Commission Rate
Types of Earning(3)
1. Commission Only
2. Total
Retainer
Remuneration
+ Commission
(Earnings) = S × CR
Total Remuneration (Earnings) = R + S × CR
3. Multiple commission
(Sliding Scale of Commission)
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?
Sales: $18,000 in a month
Package 1:
$18,000 × 10% = $1,800
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
Indifference Point
The sales level at which it would make no
difference which package you choose is called the
Indifference Point.
Commission only OR Retainer + Commission
6. Tax
Australian Taxation Office
State Administration of Taxation
GST
PAYG
Company Tax
GST
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
1. GST = Price (exGST)×10%
2. Price(incGST) = Price(exGST) + GST= Price(exGST)(1+10%)
3. Price(incGST) = Price(exGST) × 110%
1
Price(incGST)
= Price(exGST) + GST
4.GST 
11
 Price(incGST)
= Price(exGST) + Price(exGST) ×10%
GST = Price(exGST) × 10%
= Price(exGST) ×(1 + 10%)
Pr ice(incGST)
= Price(exGST)
×110%

 10%
110%
1
  P rice(incGST)
11
Company Tax
A Company is required to pay Company
Tax at a Rate of 30% of Taxable Profit.
Company Tax = Taxable Profit ×30%
material
PAYG (Pay As You Go)
Calculate the tax based on the level or bracket
of income the taxpayer is in.
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