BMATH REVIEWER

2ND GRADING | 1ST SEM

[LESSON 4.1: GROSS AND NET EARNINGS]

DEFINITIONS:
● GROSS EARNINGS is the amount earned by any
person before subtracting the taxes benefits, loans,
and other possible deductions.
● NET EARNINGS is the amount earned by any
person from the gross earnings less the total
deductions.
● DEDUCTION is the amount held by any authority
as a form of payment for some necessary dues like
taxes, loans, etc.
● SALARY is a fixed regular payment, typically paid
on a monthly or biweekly basis but often expressed
as an annual sum, made by an employer to an
employee.

EXAMPLE 1:
Consider the problem. For his salary in the previous
month, Mr. Fabella received the payslip below.

In Mr. Fabella's payslip, it can be noticed that the words

"total earnings, " "deductions, and "net" appeared. "Total
earnings" is also known as "gross earnings. " It is the
In the figures shown, it can be seen that, in a payslip, amount gained by the worker without any deductions.
there are 3 parts, namely Total Earnings, Total When we say "net pay, " it is the payment received with
Deductions and Net Pay. Let us summarize that fewer deductions for any employee.
computed value.
EXAMPLES 2, 3, & 4:
● Find the value of x in the following equations.
1. x +32,145.15=51,782.18
x=51,782.18−32,145.15
x=19,637.03
2. x=27,123.70−17,562.50
x=9,561.20
x 1,927.25
3. =
1,892.5 4000
1,927.25
x= ×1,892.5
4000
x=911.83 (Express in two decimal places)

FORMULA:
Let E be the total earnings, D be the total deduction, and 2. Minimum wage earner tax exemption
N be the net earning. 3. Bonuses and allowances (e.g. travel, rice, meal,
clothing, and laundry)
The equation: 4. 13th month pay, holiday pay, special pay, overtime
E=D+ N pay, night shift differential and hazard pay
holds for all non-negative numbers E, N, and D. 5. Leave incentives; sick, maternity, paternity, solo
Algebraic manipulation of this formula yields the parent and others
following formula: 6. Health related benefits and insurances;
● Retirement
N=E−D
D=E−N ● Minimum Wage Earner Tax Exemption (RA
9504)
EXAMPLE 1:
If E=P21,230.21 and D=P 4,871.15, what is the ● Maternity/Paternity Benefit
value of N?
FORMULAS IN THE BENEFITS OF THE WAGE
We have to use the formula: N=E−D EARNERS:
So we have, N=21,230.21−4,871.15=P 16,359.06 1. Retirement - The minimum retirement pay is given
Therefore, P16,359.06 is the net earnings. by R=22.5× P× T . Where R is the retirement pay,
P is the daily rate, and T is the number of years
EXAMPLE 2: served
If E=P22,271.16 and N=P 11,721.30 , what is the 2. 13th Month Pay – Let X be the annual basic salary
value of D? of an employee. The 13th month pay of this
1
Recall the formula: D=E−N employee must be of x.
2
So we have, E=22,271.16−11,721.30=P 10,549.86 3. Maternity Benefits – Let X be the average monthly
Therefore, P16,359.06 is the total deduction. salary of the employee. Then 2.6x and 2x for
caesarian and normal delivery, respectively.
EXAMPLE 3: 4. Holiday Pay – Refers to payment of the regular
If D=P 15,622.40 and N=P 8,236.68 , what is the daily wage for any non-working regular holiday.
value of E? Note that if the employee worked on a holiday, he
will receive twice his daily wage.
Recall the formula: E=D+ N
So we have, D=15,622.40+ 8,236.68=P 23,859.08 EXAMPLE 1:
Therefore, P23,859.08 is the total earning. Mr. Larry served Company A for 22 years with an
average daily rate of P467.35. He plans to retire and
avail of his retirement benefit. How much is the
[LESSON 4. 2: BENEFITS OF WAGE minimum retirement pay that he will receive?
EARNERS]
SOLUTION:
DEFINITIONS: The minimum retirement pay is given by
R=22.5× P× T
● WAGE is a fixed regular payment typicaly paid on a
where R is the retirement pay, P is the daily rate, and T is
daily or weekly basis, made by an employer to an the number of years served.
employee. It is the part of total production that is the
return to labor as earned income as distinct from the Given the formula above, we get:
remuneration by capital as unearned income. R=22.5× P 467.35 ×22=P 231,338.25
● INCOME is the money earned by working or Therefore, Mr. Larry will receive the retirement pay of
231,336.25 pesos for 22 years of service in Company A.
through investments
● BENEFIT is a payment or gift made by an EXAMPLE 2:
employer, the state, or an insurance company. Mr. Torres plans to retire and utilize his retirement
benefit. How much he will receive for serving the
THE BENEFITS OF THE WAGE EARNERS: company in 15 years with an average daily rate of
1. Long-term benefits: retirement, death, disability P481.23?
 De Minimis: 1,925.00
SOLUTION: Perf Bonus: 560.00
The minimum retirement pay is given by BASIC PAY: 20,867.95
R=22.5× P× T Overload-Coll: 1,769.50
where R is the retirement pay, P is the daily rate, and T is ADJUSTMENTS: 6,748.88
the number of years served.
DEDUCTIONS:
Given the formula above, we get: Withholding Tax: 4,530.00
R=22.5× P 481.23 ×15=P162,415.13 SSS Premium: 500.00
Therefore, Mr. Torres will receive a retirement pay of PhilHealth: 250.00
P162,415.13 for the 15 years of service in the company. Pag-ibig Cont: 100.00
PAG-IBIG LOAN: 220.00
RETIREMENT FUND: 626.00
College Faculty Club: 30.00
Charges/Misc: 360.00

[LESSON 4.3: TAXABLE AND NON- TOTAL EARNINGS AND DEDUCTIONS

TAXABLE BENEFITS] (COMPANY B)
EARNINGS
DEFINITIONS: Basic: 14,850.43 PREV. OL/EL:
Absences BSC: RLE-ALW:
● Taxable Benefits – It includes some meals, vacation LA/SFA: 8.909.57
trips, gift cards, tickets to events, and memberships OTH-ALW/HON:
to clubs. These types of benefits are generally taxed Other Earn: Prev. RLE:
at fair market value, which is what the employee ABS Allows: Prev. Basic:
would pay for the benefit if they were to get it on TTL: 2,887.50 Prev. LA/SFA:
their own Holiday Pay: 4,400.00
OL/EL: 9,900.01
● Non-Taxable Benefits – These includes adoption Total Earnings: 40,947.51
assistance, on-premises meals, and athletic facilities,
disability insurance, health insurance, and DEDUCTIONS:
educational assistance. Tax Whld: 9,865.38 Rentloan:
SSS Premium: 581.30 :
Consider the problem below. PhilHealth: 437.50 :
Mr. Kiel has been working in Company A for four years, Pag-Ibig: 100.00 :
then he transferred to Company B. In his previous SSS Loan: 692.17 :
employer, she hit the word "De minimis", while in his
new employer, he sees the word "allowance" instead. So Cash Adv.: :
he asked himself, what could be the difference between Pag-Ibig Loan: :
the two? And how does it affect the withholding tax?
Here is a sample of his payslips (old and new). Rent Cont: :
We pick some information from both slips and Total Deductions: 11,676.35
summarize them below.

COMPANY A COMPANY B
Withholding P4,530.00 P9,865.38
Tax
De Minimis P1,925.00
Living P8,909.57
Allowance

TOTAL EARNINGS AND DEDUCTIONS

(COMPANY A)
EARNINGS
Regular Pay: 18,382.25
 Ms. Ledie worked for 10 hours yesterday, which was
just a regular day. Her hourly rate is P53.00. How much
did she earn yesterday supposing that there will be 25%
increase for every hour exceeding the standard working
time of 8 hours?
Since she work for 10 hours, the first 8 hours have an
hourly rate of P53.00, while the remaining 2 hours have
extra 25% on top of the hourly rate. If we let T be the
total amount she earned that day, then we have;
T =( 8 ×53 )+ [ 2× 53 ( 1.25 ) ]
¿ 424 +132.50
¿ P 556.50
Therefore, Ms. Ledie earns P556.50 on that particular
day.

From the previous problem, if an employee works more

than the standard number of hours (8 hours), they will be
paid for the excess number of hours with additional
compensation.
Her daily rate is P424.00 and the additional income
earns that day for 2 hours is P132.50, so we have the
following definition.

In a regular day A, the overtime rate r of an employee

with a regular hourly rate of h is at least 1.25h. If A is a
special day or holiday, then r—1.3h.
A night shift differential refers to an additional amount
n added to the hourly rate h. The amount n is only
added if an employee works anytime from 10:00 p.m.
to 6:00 a.m. The amount n is equal to 1.1h, as stated in
the Labor Code of the Philippines.

We derive now a formula for the previous problem. We

let T be the total daily earnings, and R be the daily rate
(equivalent to 8 hours), and H be the number of worked
hours.

R
T =R+ R ×1.25 × × ( H−8 )
[LESSON 4.4: OVERTIME PAY] 8
8+1.25 h−8(1.25)
¿ ×R
DEFINITION: 8
● Overtime is the amount of time a person works 1.25 h−2
¿ ×R
8
beyond working hours.
● Overtime Pay is the additional compensation given R
Since R is the daily rate, refers to the hourly rate.
to the employee who rendered an overtime work. 8

EXAMPLE: Recall the previous problem. We can find T as;

Given: R=424 H =10
 1.25 H −2 1.25 (10 )−2
T= × R= × 424=556.50
8 8

And we get the same result.

[LESSON 4. 5: SPREADSHEET FOR

COMPUTATION AND PRESENTATION]

▪ Spreadsheet for computation and presentation

– Microsoft Excel can help you track your
employee’s wages, using a formula.
▪ The most important formulas involved total hours
worked, and overtime hours you worked.
▪ You need to set up each formula in separate cells
and for the individual employee.

In this section, we introduce spreadsheets to create a

simple computer application for computations of
salaries, wages, and others. The screenshot below is a
simple spreadsheet:
 ● A frequency table summarizes the entries in
each category:

LINE GRAPH
● It uses line segments to connect data points.
● One axis is usually related to time(year,
months,day, or clock time.)

BAR
● It uses rectangles erected on the horizontal axis
to summarize a set of quantitative data.
● Several bars can be created to compare different
quantities of data.
CHAPTER 5: PRESENTATION AND
ANALYSIS OF BUSINESS DATA

[LESSON 5.1: BUSINESS AND CHART

GRAPHS ]

BUSINESS CHARTS
● These Are graphs that are used to show
numerical facts in a simple and informative way.
● There is a variety of these illustrations to show PIE CHART
complex enormous data visually without reading ● It is a circular pie-like graphic representation
the whole text. with wedges or sectors to show how much of the
● It is advised to have a good presentation to whole each part makes up.
illustrate honest facts and not miss vital ● To get the measure of each sector in the chart,
information. multiply the percentage of each item by 360.

TABLE
● A display of numerical information in rows and AREA CHART
columns.
 ● It uses shaded regions to display quantitive data data points, but bars are created instead of the
graphically and independently. line.
● In general, line graphs are used for quantitative
continuous data, whereas bar graphs are used for
quantitative discontinuous data.
● Line graphs are appropriate with frequency
data, while bar graphs are commonly used to
display information from surveys or from
summary scores.

3. HISTOGRAM
● It is a graphical representation of the frequency
[LESSON 5.2: KINDS OF GRAPHS FOR distribution.
DATA PRESENTATION] ● It is a representation of tabulated frequencies (Y-
axis) using adjacent erected rectangles with their
● A good graphical display is pleasing to the eye corresponding class intervals (X-axis).
and, therefore, can have the effect of impressing
the viewer and encouraging them to read more
of a page or site.

KINDS OF GRAPHS
1. LINE GRAPH
● It uses line segments to connect data points. It is
useful in showing the trends or in determining
4. PIE GRAPH
relationships between two variables.
● It is also called a circle graph.
● It can also be applied if the variable plotted
● It is a circle with wedges or sectors to show how
along the X-axis (horizontal line) is related to
much of the whole each part makes up. Each
time (year, month, day, clock time). 1. Like a
slice of pie is written as a percentage.
statistical table, a line graph also has essential
● To get the measure of each sector in this chart,
parts that should not be ignored.
we compute the following Amount of an item/
a. Title: The title is the heading written on the top of the
total amount of all items x 360.
graph.
b. Scale: Do not forget the numbers on the X-axis which
When using a pie graph, be reminded of the
indicates the units of time. On the Y-axis, the numbers
following:
indicate the units of the frequency. Be cautious on the
A. Limit your variables to at most six. Too many
scale of the Y-axis, if the scale is set too high or too low,
will crowd the pie graph which causes difficulty
the trends in the data can be misleading.
to read
c. Labels: Identify the variables on the X- and Y-axes. d.
B. Detach some parts from the main pie to
Data Points: Plot all the data points on the X- and Y-
emphasize important sectors.
axes. Each data point is connected to the next point by a
C. Use different colors for every sector to
line.
distinguish every part.
e. Line: Create the line by connecting all data points.
f. Description: it will be helpful if you will have an
5. PICTOGRAPH
explanation of your graph.
● It uses pictures or symbols to represent
2. BAR GRAPH
quantitative data. Each symbol corresponds to a
● It uses rectangles erected on the horizontal axis
specific quantity.
to summarize a set of quantitative data. Several
bars can be created to compare different
quantities of data. here, the height of the bar
represents the measured value or frequency; that
is, the higher or taller the bar, the greater the
value.
● The bar graph has all the parts of the line graph.
In lieu of the line, the bars are plotted and
erected on the X-axis. You do not connect the
 quantitative data, the groupings are called class
intervals.
[LESSON 5.3: IDENTIFY THE ESSENTIAL 2. Frequency: It represents how frequently a score
PARTS OF A TABLE] occurs within the grouping. If the percentage per
category is essential, the relative frequency (rf)
FOUR MAJOR PARTS OF A STATISTICAL can be added to the table: rf = f/n x 100%.
TABLE Where f is the frequency per category, and n is
1. Title: It is the main heading written on top of the the total number of data.
table. It adequately describes the contents of the
table. Make the title concise in at most two lines. ● A grouped frequency table is a statistical table
2. Column Captions: It is the caption written as a that summarizes and describes a set of data in
vertical heading. class intervals.
3. Row Captions: It is the caption written as a
horizontal heading. They are the entries at the STEPS IN CONSTRUCTING A GROUPED
left of the table. It indicates the classifications of FREQUENCY TABLE
the data. 1. From a set of quantitative data, determine the
4. Body: It is the main part of the table which range. Range (R) is the difference between the
contains the numerical information. maximum entry and the minimum entry.
2. Decide on the number of class intervals (x).
FOUR MINOR PARTS There is no hard rule in choosing the number of
1. Prefator Notes: It is a statement below the title class intervals. The desired number of class
enclosed in parenthesis. It usually describes the intervals is 5 to 20. Avoid class intervals with no
units of measurement in numerical information. entries or having so many classes with few
2. Footnotes: It is placed immediately below the entries for each grouping.
main part of the table to provide additional 3. Determine the class width (i = R/x) by dividing
information. the range by the number of class intervals.
3. Source Notes: It is written at the end of the Round up the quotient. For example, 3.2 is
table to acknowledge where the information was rounded up to 4. If the result is an integer, you
taken. It is written below the footnote. can either add one to the number of classes or
4. Table Number: Tables are usually numbered. add one to the class width.
The table numbers are used for easy citation in 4. You are now ready to construct the class
your report, documents, or research paper. intervals with lower and upper limits. The first
lower limit may be less than or equal to the
General rules for creating a table: minimum entry. The first lower limit should also
1. A table should be simple but catch the attention be a number divisible by the size width (i).
of the readers. Use simple tables for easier Continue to add the class width to this lower
comparisons, so never put too much limit to get the rest of the lower limits. Subtract
information. one unit from the second lower limit to get the
2. Arrange the numerical information in an orderly first upper limit. Similarly, continue to add the
manner to facilitate valid and convincing class width to this upper limit to get the rest of
conclusions. the upper limits.
3. Proper labeling and clear headings for column
and row captions are necessary. Note: When a data set has extremely small or large entries
and no lower/ upper limit, it is advised to do open-ended
4. If there are vast data, it is suggested to construct
class intervals. This will avoid classes with zero frequencies.
additional tables.
5. Find the class boundaries (c.b) or also called the
[LESSON 5.4: STATISTICAL TABLE] true limits. If the entries are integers, subtract
● Various tools and procedures can be used to 0.5 units from the lower limits and add 0.5 units
organize a large set of data. To understand the from the upper limits. If entries have one
trends of the data set, it is advised to use a decimal value, subtract 0.05 from the upper
statistical table to present the data. limit. The boundaries are also halfway between
the upper limit of one class and the lower limit
TWO MAIN COLUMNS OF TABLE of the next class.
1. Category: The categories are the groupings of 6. Tally the scores falling within a class interval.
the data set. But when dealing with a vast of The tally in each group is called the frequency
(f).
 7. Find the class mark(X m) or the midpoint of
each class interval. It is the average of the limits
in a class interval. X m= Lower limit + upper
limit /2
8. Find the relative frequency if needed. These are
the percentages of cases in each group.
9. Determine the less than cumulative frequency
(c.f) if needed. the first c.f. is the same as the
first frequency. To get the second, add the next f
to the preceding c.f and so on until the last c.f is
the total number of scores.

[LESSON 5.5: MEASURES OF VARIATION]

MEASURE OF VARIATION
● a value that is used to describe the spread of a
set of data. If a measure of central tendency gets
the typical value, the measures of variation
determine the discrepancy or difference between
the data.

RANGE (R): It is the difference between the highest

and the lowest entries.
R= highest entry - lowest entry

PROPERTIES OF THE RANGE:

1. It does not measure the spread of the majority,
since it only considers the extreme scores.
2. The larger the range, the more spread the set of
data is.
3. It is quick and easy to compute.
4. It is a rough measure of spread.

[LESSON 3.7: COMMISSION ]

COMMISSION
● maintains the relationship between the employer
and the employees of the firm. It acts as an
agreement between the salespeople and the firm
for specific targets that need to be reached.
● It may also serve as a reward for the services
rendered by the salespeople.

3 DIFFERENT TYPES OF COMMISSION

1. STRAIGHT COMMISSION
2. GRADUATED COMMISSION
3. SALARY PLUS COMMISSION