BUSINESS MATHEMATICS

FRACTIONS
DECIMALS
PERCENTAGE

BUSINESS MATHEMATICS By: Class D

 FRACTIONS

BUSINESS MATHEMATICS By: Class D

• FRACTION – when a whole quantity
is divided into parts; and is written in
𝑎
the form of , where a and b are
𝑏
whole numbers but cannot be zero.
• A. Prime number– a positive integer (except 1)
whose factors are only 1 and itself Examples: 5,
13, 127
• B. Composite number– a positive integer (except
1) which can be expressed as a product of two or
more positive integers, i. e., it has other factors
besides 1 and itself Examples: 28, 39, 100
• C. Relatively prime numbers – positive integers
which do not have common prime factors
Examples: 6 and 35, 4
 CATEGORIES OF FRACTION
• Proper Fraction – if the numerator is less than
the denominator. It means that the fraction
names a number less than 1 unit.
• Improper Fraction – if the numerator is
greater than or equal to the denominator. It
means that the fraction names a number
greater than or equal to 1 unit.
 MIXED NUMBER
• Note: But an improper fraction can be
transformed to a mixed number. A mixed
number is the sum of a whole number and a
proper fraction.
42
• Ex. 1.
3
53
2.
4
 Rules on Addition
& Subtraction of
fraction
• Add/subtract only when they are like fractions. Like
fractions have the same denominator.
• Add/subtract the numerators and place the sum over the
common denominator. Simplify the result whenever
necessary.
 RULES ON ADDITION &
SUBTRACTION OF FRACTION

But if the fractions are unlike, determine first the least

common denominator (LCD). The LCD is the least
common multiple of the denominators of the
fractions.
• Change each unlike fraction to an equivalent fraction
with the LCD as a common denominator. Add the
resulting fractions as before.
 LET’S DO IT!
• A Geronian who is studying in Manila budgets
2
his weekly allowance. He spends of his
5
1 7
allowance on food, on school supplies,
10 20
on transportation, and the rest he saves. If his
allowance is P 2,500, how much does he
spend on each?

MTOT - ABM Class A

RULES ON MULTIPLICATION
& DIVISION OF FRACTION
Multiplication rules
• Put all MIXED NUMBERS in IMPROPER
FORM.
• Reduce all fractions before multiplying
• Multiply the numerator times the
numerator and the denominator times
the denominator.
 3
3. A piece of land, 7 hectares in an area, is to be
8
1
developed for a resort. According to the plan,
4
of the land is to be left as wildlife preserve.
How many hectares will this be?
RULES ON DIVISION OF FRACTION

Division rules

• CHANGE division sign to a multiplication sign.

• Write the RECIPROCAL of the divisor (2nd number).

• Follow the multiplication rules.

EXAMPLE:
 Let’s Practice!
12 3 3 2
• ÷ 4 ÷1
25 20 7 5
5
• ÷ 25
8
1 4
• 2 ÷
6 5
1
• 8÷3
4
3. Teresa made a 1 liter of lemon juice for her
and her four friends. One of her four friends
2
wanted to drink of it and the remaining part
5
was equally shared by Teresa and her other
friends. How many liters would Teresa and each
of her three other friends have?
FRACTIONS TO DECIMALS
AND PERCENT FORM
AND VICE VERSA
FRACTIONS TO DECIMALS
AND PERCENT FORM
AND VICE VERSA
 FRACTION TO PERCENT
OR VICE VERSA
Rules:
• For changing fractions to percent
✓ Divide the numerator of the fraction by its denominator.
✓ Multiply the result by 100 and put the % sign.

• For changing percent to fractions

✓ Make a fraction with the percent as the numerator and 100
as the denominator and then simplify the faction

BUSINESS MATHEMATICS By: Class D

 TRY THIS.
4. 300 is the same as:
a. 25% of 800 c. 30% of 600
b. 40% of 750

5. Give the final percentage rate of

commission gained by Cristy. She
sold an appliances for P 258,000. Her
commission was P 37,520.00 minus P
5,300. for transportation.

BUSINESS MATHEMATICS By: Class D

CHAPTER 2

BUSINESS MATHEMATICS By: Class D

RATIO AND PROPORTION

BUSINESS MATHEMATICS By: Class D

A. A ratio is a relationship between two quantities. We use the
following notations in writing the ratio of two quantities a and
b:
𝒂
read as “a over b” or
𝒃
a:b read as “a is to b”

BUSINESS MATHEMATICS By: Class D

• To illustrate the concept of ratio, consider
this situation. Suppose a vendor sells two
baskets of fruits. One basket contains 50
mangoes while the other contains 60
avocados. The ratio of mangoes to
avocados is:
50:60, or 50/60.

BUSINESS MATHEMATICS By: Class D

• This can be reduced in lowest terms by dividing both terms
of the ration by their GCF:
𝟓𝟎 ÷𝟏𝟎=𝟓
or 5:6
𝟔𝟎÷𝟏𝟎=𝟔

BUSINESS MATHEMATICS By: Class D

Example: Writing a Ratio
1. Mother Cecil wants to cook pancakes for her children. She
knows that an egg mixed with a certain amount of flour can
make 8 pancakes. What is the ratio of the number of eggs to the
number of pancakes?
• 1:8 or 1/8 ratio of number of eggs to the number of pancakes.

BUSINESS MATHEMATICS By: Class D

2 . Six cups of flour is mixed with 2 cups of sugar. What is
the ratio of the number of cups of sugar to that of flour?
𝟐 ÷𝟐=𝟏
• , 𝒐𝒓
𝟏: 𝟑 ratio of the number of cups of sugar
𝟔÷𝟐=𝟑
to that of flour
• What part of the mixture is flour?
𝟔 ÷𝟐=𝟑
• amount of flour of the mixture
𝟖÷𝟐=𝟒

BUSINESS MATHEMATICS By: Class D

 RATE
B. A rate is a comparison of two quantities
with different units. Ex: number of kilometers
to a number of hours (km/hr), number of feet
to number of seconds (ft/s) or Philippine
peso to US dollar (PhP/USD).

BUSINESS MATHEMATICS By: Class D

1. Mommy Cecil spends 32 minutes to make 8 pancakes
for her children. What is her rate in cooking pancakes?
Express your answer in simplest form.
𝟖 𝒑𝒂𝒏𝒄𝒂𝒌𝒆𝒔
• Mommy Cecil can cook 8 pancakes in
𝟑𝟐 𝒎𝒊𝒏𝒖𝒕𝒆𝒔
32
minutes. In simplest form:
𝟖 𝟖 ÷𝟖 𝟏 𝒑𝒂𝒏𝒄𝒂𝒌𝒆
= = or
𝟑𝟐 𝟑𝟐÷𝟖 𝟒 𝒎𝒊𝒏𝒖𝒕𝒆𝒔
𝟏
𝒑𝒂𝒏𝒄𝒂𝒌𝒆 𝒑𝒆𝒓 𝒎𝒊𝒏𝒖𝒕𝒆
𝟒

BUSINESS MATHEMATICS By: Class D

b. Prof. Dennis Bacani check 40 exam papers in 4
hours. What is his rate of checking exam papers?

𝟒𝟎 𝒆𝒙𝒂𝒎 𝒑𝒂𝒑𝒆𝒓𝒔 𝟒𝟎 ÷𝟒 𝟒𝟎
= = = 𝟒𝟎 𝒆𝒙𝒂𝒎 𝒑𝒂𝒑𝒆𝒓𝒔 𝒑𝒆𝒓 𝒉𝒐𝒖𝒓
𝟒 𝒉𝒐𝒖𝒓𝒔 𝟒 ÷𝟒 𝟏

BUSINESS MATHEMATICS By: Class D

C. When two ratios are equal, we may write
the equality in either of the following
notations:

𝒂 𝒄
= or a : b = c : d
𝒃 𝒅

BUSINESS MATHEMATICS By: Class D

• Such equality is called proportion. The outer terms a
and d are called the extremes, while the inner terms b
and c are called the means. An important property of any
proportion is the cross-product property, which is
illustrated with:

Formula: a : b = c : d where the product of

the extremes is equal to the product of the means; that is:
ad= bc.

BUSINESS MATHEMATICS By: Class D

• To illustrate this property, consider the following proportion:
𝟑 𝟗
3:5 = 9:15, or = applying the cross-product property:
𝟓 𝟏𝟓

(3)(15) = (5)(9)
45 = 45

BUSINESS MATHEMATICS By: Class D

 DIRECT PROPORTION

• When two or more quantities increase

or decrease in the same ratio, then their
relationship is called a direct
proportion.

BUSINESS MATHEMATICS By: Class D

 INDIRECT PROPORTION

• An INDIRECT PROPORTION exists between two quantities if,

as one quantity decreases, the other quantity increases
proportionately.

BUSINESS MATHEMATICS By: Class D

In general, if the following equality represents an indirect
proportion:
a:b=c:d
then ab=cd

▪ Difference between the two types of proportion is as follows:

Direct proportion: If a : b = c : d, then ad=bc
Indirect proportion If a : b = c : d then ab=cd

BUSINESS MATHEMATICS By: Class D

 EXAMPLE 1>> Solving Indirect
• Solve for the value of Proportion
N in each indirect proportion below:
1) 12 : 5 = 20 : N
20N = (12) (5)
= 60/20
=3
2) 4 : 240 = 20 : N
20N = (4) (240)
= 960/20
= 48

BUSINESS MATHEMATICS By: Class D

 PARTITIVE PROPORTION

▪ Partitive proportion is a
proportion that requires dividing
a number or quantity into two or
more parts that are not
necessarily equal, according to a
given ratio.

BUSINESS MATHEMATICS By: Class D

 Example 1:Problem Solving Involving Partitive Proportion

• A man and his father own a total of 35

ha of land. The ratio of the areas of
the man’s land to his father’s land is 3 :
4. How many hectares of land does
each of them own?

BUSINESS MATHEMATICS By: Class D

• Answer and solution:
3+4 = 7 parts
a. 3/7 x 35 = 15 ha. (therefore, the man owns
15 ha of land)
b. 4/7 x 35 = 20 ha. (thus, his father owns 20
ha of land)

MTOT - ABM Class A

 A partitive proportion may also involve a ratio
of more than two terms.

Example 2:

▪ A woman will divide her 20-ha

land among her three children
in the ratio of 2 : 3 : 5. How
many hectares of land will each
child get?

BUSINESS MATHEMATICS By: Class D

Answer and solution:
2 + 3 + 5 = 10 parts
a. 2/10 x 20 = 4 ha.
b. 3/10 x 20 = 6 ha.
c. 5/10 x 20 = 10 ha.

MTOT - ABM Class A

 Example 3:

▪ The owner of a shoe factory gives a total

of P30,000 pesos as incentive to the three
most productive workers. The amount is
divided among those workers in the ratio
of 5 : 3 : 2. How much does each of them
receive?

BUSINESS MATHEMATICS By: Class D

Answer and solution
5 +3 + 2 = 10 parts
a. 5/10 x 30,000 = 15,000
b. 3/10 x 30,000 = 9,000
c. 2/5 x 30,000 = 6,000

MTOT - ABM Class A

 Buying
and Selling

BUSINESS MATHEMATICS By: Class D

LESSON 1: Markup,
Markdown and
Gross margin

BUSINESS MATHEMATICS By: Class D

 Formulas in getting the markup,
markup rate and selling rate
• Markup (Mu), which occasionally called mark-on,
can be defined as the amount that is added to the
original cost of an item to arrive at a selling price.
Formula: Mu = S - Mo
• The markup rate (r) is the ratio of the markup to
the original price.
𝑴𝒖
Formula: r = × 𝟏𝟎𝟎%
𝑴𝒐

BUSINESS MATHEMATICS By: Class D

 Formulas in getting the markup,
markup rate and selling rate

• Selling price (S) formula: S = Mo + Mu if original

price and markup price is given or;
• Selling Price (S) = Mo (1+r) if original price and
markup rate is given.

• Original Price (Mo ) = Total Cost divided by No. of

Pieces

BUSINESS MATHEMATICS By: Class D

Example: If you bought a lot for P800,000 and you
want to sell it at P200,000 higher than the original
price. The price must be increased by P200,000
which is called the markup or mark-on. Compute for
the markup rate and selling price.
𝑴𝒖
Markup rate (r) = × 𝟏𝟎𝟎%
𝑴𝒐
= 200,000/800,000 x 100% = 25%
Selling Price (S) = Mo + Mu
= 800,000 + 200,000
= 1,000,000
BUSINESS MATHEMATICS By: Class D
Example 1: Determining the markup
and markup rate

• In 2012, Alvin bought a residential

lot for P350,000. He sells the
property at its present market
value, which is P600,000. How
much is the markup? What is the
markup rate?

BUSINESS MATHEMATICS By: Class D

• Given: S=P600,000 and Mo =P350,000
• Mu = S – Mo
= 600,000 – 350,000
= 250,000 (markup)

MTOT - ABM Class A

 𝑴𝒖
• r= × 𝟏𝟎𝟎%
𝑴𝒐
= 250,000/350,000 x 100%
= 71.43% (markup rate)

BUSINESS MATHEMATICS By: Class D

Example 2: calculating the selling price
given the markup rate
• A certain shop buys and sells
foreign currencies. Suppose it
buys a US dollar at P44, and then
sells the dollar at 2.3% markup
rate. What is the selling price of a
US dollar? Round off your answer
to the nearest centavo.

BUSINESS MATHEMATICS By: Class D

• Given: Mo = P44 and r = 2.3% = 0.023.
• Selling price (S) = Mo (1+r)
= 44 (1+ 0.023)
= P45.01

MTOT - ABM Class A

 Formulas in getting the markdown, markdown rate and
selling rate
• Markdown (Md) – is the amount that is subtracted from the
original price to obtain the selling price.
Formula : Md = Mo – S or ; (Md) = r × Mo
• Markdown rate – is the ratio of the markdown to the original
price.

𝑴𝒅
Formula : r = × 𝟏𝟎𝟎%
𝑴𝒐
• Selling price (S) formula: S = Mo - Md if original price and
markdown price is given or;
• Selling Price (S) = Mo (1 - r) if original price and markdown rate is
given.

BUSINESS MATHEMATICS By: Class D

 Example 3: Determining the
Markdown Rate
• The price of an item, which was originally sold at P425, was
reduced to P357. What is the markdown rate?
• Given: Mo = P425 and S= P357
• First, compute first for the markdown (Md)
Md = Mo – S
= 425 – 357
= 68
• Then solve for the markdown rate (r)
r = 𝑴𝒅
𝑴𝒐
× 𝟏𝟎𝟎%
= 68/425 x 100% = 16%

BUSINESS MATHEMATICS By: Class D

Example 4: Determining the selling
price given the markdown rate

• Alvin purchased a laptop for P22,000.

After a few months, he purchased a
new laptop and decided to sell his
older laptop at a price that is 40%
lower than its original price. How
much should he sell his older laptop?

BUSINESS MATHEMATICS By: Class D

• Given: Mo = P22,000 and r = 40% = 0.4.
• Selling price (S) = Mo (1 - r)
= 22,000 (1-0.4)
= 22,000 (0.6)
= 13,200

MTOT - ABM Class A

Formulas in getting the gross margin and gross margin rate

• Gross margin – may be computed by subtracting the original price from the
selling price of an item.

Formula: Mg = S- Mo
• Gross margin rate – is the ratio of the gross margin to the selling price.
𝑴𝒈
Formula: r = × 𝟏𝟎𝟎%
𝑺
• Selling price (S) formula: S = Mg + Mo if original price and gross margin
price is given or;
𝑴𝒐
• Selling Price (S) = if original price and gross margin rate is given.
𝟏−𝒓

BUSINESS MATHEMATICS By: Class D

 Difference between markup rate
and gross margin rate:
Suppose an item, which has an original price of P1,000, is sold at P1,250. Study how
the markup rate and gross margin rate are computed:
Markup rate Gross Margin rate

BUSINESS MATHEMATICS By: Class D

 Example 5: determining the gross
margin and the gross margin rate

• Amlong spent P2.4 million to construct a house. He then sold the house at
P3 million. How much was the gross margin? What is the gross margin
rate?
• Given: Mo = 2,400,000 and S = P3,000,000.
• Gross margin (Mg ) = S- Mo
= P3,000,000 – P2,400,000
= P600,000
𝑴𝒈
• Gross margin rate (r) = × 𝟏𝟎𝟎%
𝑺
= P600,000/3,000,000 x 100%
=20%

BUSINESS MATHEMATICS By: Class D

Example 6: calculating the selling price

• Consider again the problem in

example 5. It was mentioned that
Amlong spent P2.4 million to
construct the house. If he wants to
have a gross margin rate of 25%
how much should he sell the house?

BUSINESS MATHEMATICS By: Class D

• Given: Mo= P2,400,000 and r = 25% = 0.25
𝑴𝒐
• Selling price (S) =
𝟏−𝒓
𝟐,𝟒𝟎𝟎,𝟎𝟎𝟎
=
𝟏−𝟎.𝟐𝟓
𝟐,𝟒𝟎𝟎,𝟎𝟎𝟎
=
𝟎.𝟕𝟓
= 3,200,000

MTOT - ABM Class A

Example 7: Problem solving involving
markup and gross margin

• Pilong was requested by his manager to

calculate the selling price of an item that
costs P600,000 to produce if their company
will apply:
1. A 20% markup rate; or
2. A 20% gross margin rate

BUSINESS MATHEMATICS By: Class D

• Given: Mo = P600,000
1. The markup rate is 20% or 02.
Selling price (S) = Mo (1+ r)
= 600,000 (1+0.2)
= 600,000 (1.2)
=720,000 (at markup rate of 20%,
the selling price of an item will be P720,000)

MTOT - ABM Class A

2. The gross margin rate is 20% or 0.2
𝑴𝒐
Selling price (S) =
𝟏−𝒓
𝟔𝟎𝟎,𝟎𝟎𝟎
=
𝟏−𝟎.𝟐
𝟔𝟎𝟎,𝟎𝟎𝟎
=
𝟎.𝟖𝟎
= 750,000 (at 20% gross
margin rate, the selling price will be
P750,000)

BUSINESS MATHEMATICS By: Class D