BUSINESS MATH MIDTERM REVIEWER (ABM 4 and 5)

By: Jesn Park

This covers all pointers stated in your Ranger360. I will be including the formulas +
problem solving examples to prepare you for the Midterm exams

I. Addition and Subtraction of Fractions

Key Concepts:

- When adding fractions:

a. With similar fractions – add the numerators and take the common denominator
b. With dissimilar fractions – change them first to similar fractions and then add
c. With mixed numbers – Add the whole numbers, add the numerators, and take the
common denominator.

- When subtracting fractions:

a. With similar fractions
1. Subtract the numerators and take the common denominator
2. Reduce to its lowest term, if possible.

b. With dissimilar fractions

1. Change the fractions to similar fractions by using the least common
denominator
2. Subtract the numerators and take the common denominator
3. Reduce the difference to its lowest term, if possible

c. With mixed numbers

1. Subtract the whole numbers, subtract the numerators, and take the common
denominator
2. Reduce the difference to its lowest term, if possible

Examples:

𝟒 𝟔
1. Add 𝟏𝟓 + 𝟕

𝟒 𝟔
= +
𝟏𝟓 𝟕

𝟐𝟖 𝟗𝟎
= 𝟏𝟎𝟓 + 𝟏𝟎𝟓 Step 1: Change the fractions to similar fractions using LCD

𝟏𝟏𝟖
= Step 2: Add the numerators, then take the common denominator
𝟏𝟎𝟓

𝟏𝟑
=𝟏 Step 3: Change to mixed number
𝟏𝟎𝟓

BUSINESS MATH MIDTERM REVIEWER | Page 1

 𝟐 𝟒
2. Add 𝟖 𝟓
+𝟑 𝟏𝟓

𝟐 𝟒
=𝟖 𝟓
+𝟑 𝟏𝟓

𝟒𝟐 𝟒𝟗
= + Step 1: Change to improper fraction
𝟓 𝟏𝟓

𝟏𝟐𝟔 𝟒𝟗
= 𝟏𝟓
+ 𝟏𝟓
Step 2: Change the fractions to similar fractions using LCD

𝟏𝟕𝟓
= Step 3: Add the numerators, then take the common denominator
𝟏𝟓

𝟑𝟓
= Step 4: Reduce to lowest terms
𝟑

𝟐
= 𝟏𝟏 Step 5: Change to mixed number.
𝟑

𝟏𝟏 𝟏
3. Subtract 𝟏𝟐
− 𝟒

𝟏𝟏 𝟏
= 𝟏𝟐
− 𝟒

𝟏𝟏 𝟑
= 𝟏𝟐
− 𝟏𝟐 Step 1: Change the fractions to similar fractions using LCD

𝟖
= 𝟏𝟐
Step 2: Subtract the numerators and take the common denominator

𝟐
= 𝟑
Step 3: Reduce to lowest terms

𝟏𝟎
4. Subtract 12 – 7 𝟏𝟓

𝟏𝟎
= 12 - 𝟕
𝟏𝟓

𝟏𝟓 𝟏𝟎
= 𝟏𝟏 𝟏𝟓 − 𝟕 𝟏𝟓 Step 1: Rename the whole number as mixed number

𝟏𝟓−𝟏𝟎
= (𝟏𝟏 − 𝟕) 𝟏𝟓
Step 2: Subtract the whole numbers, numerators, and take the
common denominator.

𝟓
= 𝟒 𝟏𝟓

𝟏
= 𝟒 𝟑
Step 3: Reduce to lowest terms

BUSINESS MATH MIDTERM REVIEWER | Page 2

Try yourself! (Application)

1
1. Sir JP worked 56 hours in one week as a teacher. He worked 42 3
hours from Monday to
1
Friday. He worked 3 6
more hours on Saturday than he did on Sunday. How many hours
did he work on?
a. Saturday
b. Sunday

1
2. A newspaper reporter spent 13 hours at a scene of an earthquake in Batanes and
4
3
another 1 8 hours writing the article for the paper. How many hours did it take the
reporter to cover the earthquake?

12 5
3. Mr. Reyes works 10 14 hours each day. She spent 4 21 hours in his workspace and the
rest of his time teaching with students. How much time does he spend teaching?

3
4. If Gregorius spent another 3 5 hours in a private school, he will complete a 10-hour
work day. How many hours has he worked so far today?

5. Gabriel wants to make five banners for the parade. He has 75 feet of material. The
1 1 3 1
size of four of the banners are: 12 3ft., 16 6 ft., 11 4ft., and 14 2ft. How much material
is left for the fifth banner?

II. Multiplication and Division of Fractions

Key Concepts:

- When multiplying
1. Proper/Improper fractions
a. Cancel out any factors that are divisible, if possible.
b. Multiply the numerators; then, multiply the denominators

2. Mixed numbers
a. Change the mixed numbers into improper fractions
b. Cancel out any factors that are divisible, if possible
c. Multiply the numerators; then, multiply the denominators

- When dividing
1. Proper/Improper fractions
a. Multiply the dividend by the reciprocal of the divisor
b. Reduce the product to its lowest term

BUSINESS MATH MIDTERM REVIEWER | Page 3

 2. Mixed number
a. Change the mixed numbers into improper fractions
b. Multiply the dividend by the reciprocal of the divisor
c. Reduce the product to its lowest term

Examples:

𝟑 𝟏𝟎
1. Multiply x
𝟓 𝟏𝟐

𝟑 𝟏𝟎
= 𝟓
𝒙 𝟏𝟐

𝟑 𝟓 𝟏𝟎 𝟓
=𝟓 𝒙 𝟔
Step 1: Reduce to lowest terms (𝟏𝟐 = 𝟔)

𝟑 𝟏
=𝟏 𝒙 𝟔
Step 2: Factor out 5 and 5

𝟏 𝟏
=𝟏 𝒙 𝟐
Step 3: Factor out 3 and 6

𝟏
=𝟐 Step 4: Multiply the numerator and denominator.

𝟐 𝟏
2. Multiply 𝟐 𝟓 𝒙 𝟏 𝟒

𝟐 𝟏
= 2𝟓 𝒙 𝟏 𝟒

𝟏𝟐 𝟓
= 𝟓
𝒙 𝟒
Step 1: Change the mixed numbers into improper fractions

𝟑 𝟏
=𝟏 𝒙 𝟏
Step 2: Factor out 12 and 4, then factor out 5 and 5

=3 Step 3: Multiply the numerator and denominator

𝟑 𝟏
3. Divide 𝟒 ÷ 𝟐

𝟑 𝟏
= ÷
𝟒 𝟐

𝟑 𝟐
= 𝒙 Step 1: Find the reciprocal of the divisor, then change sign to multiplication
𝟒 𝟏

𝟑 𝟏
= 𝒙 Step 2: Factor out 4 and 2
𝟐 𝟏

𝟑
= Step 3: Multiply the numerator and denominator
𝟐

𝟏
=𝟏 Step 4: Change it to mixed number.
𝟐

BUSINESS MATH MIDTERM REVIEWER | Page 4

 𝟓 𝟏
4. Divide 1 ÷ 𝟏
𝟗 𝟔

𝟓 𝟏
= 1 ÷𝟏
𝟗 𝟔

𝟏𝟒 𝟕
= 𝟗
÷𝟔 Step 1: Change the mixed numbers into improper fractions

𝟏𝟒 𝟔
= 𝒙 Step 2: Find the reciprocal of the divisor, then change sign to multiplication
𝟗 𝟕

𝟐 𝟐
=𝟑 𝒙 𝟏
Step 3: Factor out 7 and 14, 6 and 9

𝟒
=𝟑 Step 4: Multiply the numerator and denominator

𝟏
= 𝟏𝟑 Step 5: Change to mixed number.

Try yourself! (APPLICATION)

1. A satellite makes 4 revolutions of the earth in one day. How many revolutions would it
1
make in 6 2
days?
1
2. A square has a perimeter of 2 3 cm. What is the length of each side of the square?
3
3. Tanya has read 4
of a book, which is 390 pages. How many pages are in the entire
book?
1 1
4. Bermuda triangle has an area of 25 4 inches. The base of the triangle is 7 2 𝑖𝑛𝑐ℎ𝑒𝑠. Find
the height of the triangle.
1
5. Belinda baked 9 pies that weigh 20 4 pounds total. How much does each pie weigh?

III. Aliquot Parts of 100%

𝟏 𝟒 𝟏 𝟕
50% = 𝟐 80% = 𝟓 87 𝟐% = 𝟖

𝟏 𝟏 𝟏 𝟏 𝟏
25% = 𝟒 33 𝟑% = 𝟑 6 𝟒% = 𝟏𝟔

𝟑 𝟐 𝟐 𝟐 𝟏
75% = 𝟒 66 𝟑% = 𝟑 16 𝟑% = 𝟔

𝟏 𝟏 𝟏 𝟏 𝟓
20% = 𝟓 12 𝟐% = 𝟖 83 𝟑% = 𝟔

𝟐 𝟏 𝟑 𝟏 𝟏
40% = 37 % = 8 %=
𝟓 𝟐 𝟖 𝟑 𝟏𝟐

𝟑 𝟏 𝟓 𝟐 𝟓
60% = 𝟓 62 𝟐% = 𝟖 41 𝟑% = 𝟏𝟐

BUSINESS MATH MIDTERM REVIEWER | Page 5

 IV. Converting Fractions, Decimals, and Percent

Key Concept:

- 4 types of decimals:
a. Nonrepeating, Terminating – 0.56, 4.5, 3.478
b. Repeating, Terminating – 4.55, 3.66, 0.333
c. Repeating, Nonterminating – 2.333…, 0.166…
d. Nonrepeating, Nonterminating – 3.1415…, 2.718…

Pure repeating – All digits in the decimal are repeating

Ex: 0.3333, 0.6666, 0.272727

Mixed repeating – At least one of the digits in the decimal are not repeated and some digits
are repeated.
Ex: 0.123333…, 0.10363636…, 0.2999999…

Guide in Converting Fractions, Decimals, and Percent:

Replace the percent sign by a denominator of 100

And reduce the fraction to its lowest term

Use the place value of Replace the percent by

the digit that is farthest to a fraction bar over a denominator
the right in the decimal of 100, then divide by 100

Fraction Decimal Percent

Divide the numerator Change the decimal to

by the denominator. a fraction with a denominator
of 100 and add % sign.

Change the fraction to decimal,

then decimal to percent.

BUSINESS MATH MIDTERM REVIEWER | Page 6

Example:

a. Decimal to Fraction – Change 0.34 to fraction.

𝟎.𝟑𝟒 𝟏𝟎𝟎
= 𝒙 Step 1: Multiply the decimal by 100 by its numerator and denominator
𝟏 𝟏𝟎𝟎

𝟑𝟒
= 𝟏𝟎𝟎

𝟏𝟕
= Step 2: Reduce the fraction to its lowest terms
𝟓𝟎

𝟒
b. Fraction to Decimal – Change to fraction (Ans: 0.8)
𝟓

*Divide the numerator by the denominator, if the answer is a non-terminating decimal:

a. Repeating – put a bar above the digit
b. Non-repeating – round off to the nearest hundredths

c. Decimal to Percent – Change 0.36 to percent

𝟏𝟎𝟎
= 0.36 x 𝟏𝟎𝟎 Step 1: Multiply the decimal by 100 by its numerator and denominator

𝟑𝟔
=
𝟏𝟎𝟎

= 36% Step 2: Change the fraction to percent. (% = denominator of 100)

d. Percent to Decimal – Change 37% to decimal

= 37%

𝟑𝟕
= 𝟏𝟎𝟎 Delete the percent sign and divide by 100

= 0.37

𝟑
e. Fraction to Percent – Change 𝟖 to percent

𝟑
=𝟖

= 0.375 Step 1: Divide the numerator by the denominator

𝟏𝟎𝟎
= 0.375 x 𝟏𝟎𝟎 Step 2: Multiply the decimal by 100 by its numerator and denominator

𝟑𝟕.𝟓
= 37.5% Step 3: Change the resulting fraction to percent ( 𝟏𝟎𝟎 𝒕𝒐 𝟑𝟕. 𝟓%)

BUSINESS MATH MIDTERM REVIEWER | Page 7

 f. Percent to Fraction – Change 34% to fraction

= 34%

𝟑𝟒
= Step 1: Replace the percent sign by a denominator of 100
𝟏𝟎𝟎

𝟏𝟕
= 𝟓𝟎 Step 2: Reduce the fraction to lowest term

Try Yourself!

Complete the table below by supplying the missing details:

Decimal Fraction Percent

3
0.31
8

5
16

125%

3
7 4%

4
4 5

V. Word Problems (Involving Fractions)

2
1. Ben and Bern are friends. One day, 2 pizzas were delivered to their house. Ben took 3
more of the pizza than Bern. How many did Ben took?

2. The Peso-Dollar exchange for today was P1 = $52.29. Santi and Rome wanted to
4
exchange their Philippine peso to US dollar. Santi has 5 more money than Rome. If the
sum of the two persons was P160. What was Santi’s money in USD? Rome’s money in
USD?

3. Suppose that the width of a certain rectangular TV is 1 inch more than one-fourth of
its length. The perimeter of the rectangular TV is 32 inches. Find the length and width
of the rectangle. What is the cost of the TV if 1 ½ square inch = P15?

BUSINESS MATH MIDTERM REVIEWER | Page 8

 4 1
4. Gabriel is a construction worker. He works 25 hours on Building A, 27 hours on Building
1
B and 3 2 hours on Building C. If a standard working hour for a worker is 8 hours, did
Gabriel met the standard? If not, how many hours does he need to work?

8
5. Enzo and Tanika took an exam in Business Math. Tanika’s score was 9
the score of
Enzo. If their score’s sum is 153.
a. Find the score of Enzo and Tanika
4
b. Andrew also took the exam, what is his score if he got more than Tanika’s score?
5

VI. RATIO, Rate, and Unit Rate

Key concepts:
- 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
- The order in which ratios are written in ratio form is important. The result of the
comparison using ratio is a number without a unit
- Equal ratios are ratios with the same value.
- A rate is a ratio that compares different kinds of units
- A unit rate describes how many units of the first type of quantity corresponds to
one unit of the second type of quantity.

Examples:
1. Maria works 12 days in a month while Tony works 3 weeks in a month. What is the
ratio of the number of days that Maria works as compared with the number of days
that Tony works?

𝟏𝟐 𝒅𝒂𝒚𝒔
= 𝟑 𝒘𝒆𝒆𝒌𝒔

𝟏𝟐 𝒅𝒂𝒚𝒔
= 𝟐𝟏 𝒅𝒂𝒚𝒔 Step 1: Change weeks to days (Express quantities in the same unit)

𝟒
= 𝟕 or 4:7 Step 2: Simplify to ratio form or fraction form.

2. A car travelled a distance of 150 km in 3 hours. Find the unit rate comparing
distance travelled by the car to the time takes to cover that distance.

150 𝑘𝑚
= 3 ℎ𝑜𝑢𝑟𝑠

50 𝑘𝑚
= 𝑜𝑟 50 𝑘𝑚/ℎ Divide the numerator by the denominator
1 ℎ𝑟

BUSINESS MATH MIDTERM REVIEWER | Page 9

 3. If 12 prints of pictures cost 360 pesos. What is the unit rate of a print of pictures?

360 𝑝𝑒𝑠𝑜𝑠
= 12 𝑝𝑟𝑖𝑛𝑡𝑠

30 𝑝𝑒𝑠𝑜𝑠
= 𝑝𝑟𝑖𝑛𝑡
or 30 pesos per print Divide the numerator by the denominator

Try Yourself! (Application)

1. What is the best buy of the following products?
a. 3 battery for 480 pesos or 12 batteries for 1,476 pesos
b. 18 pens for 684 pesos or 30 pens for 840 pesos
c. 22 staplers for 330 pesos or 4 staplers for 78 pesos
d. 11 books for 1000 pesos or 29 books for 2030 pesos
e. 3 calculators for 1050 pesos of 24 calculators for 6000 pesos

2. One photography store offered a roll of 24 prints for 900 pesos. Another store
advertised 36 prints for 1,350 pesos. Which store offered the better buy?
3. Benny earns 540 pesos in 12 hours. How much does he earn every hour?
4. 2 kg of banana cost 56 pesos. What is the cost of 5 kg of banana?
5. When I make orange juice, the ratio of lemons to liters of water is 3:2. If 14 lemons
are available, how many liters of water should I use?
6. Lorainne counted 26 photographs in a 60-page magazine. She said that this was the
same as 2 photographs for every page. Is she right? Explain.

VII. Proportions: Direct, Inverse, and Partitive

Key Concepts:
- A proportion is a statement that two ratios are equal
- There are four terms in a proportion. The first and the last terms are called EXTREMES
(highlighted in red), while the second and the third terms are called MEANS.
(highlighted in purple)

2:3 = 4:6
- In a proportion, the product of the means is equal to the product of the extremes

Direct Proportion
- Existed between two quantities when they are related in such a way that an increase
or decrease in one quantity will produce the same kind of change in the other
quantity.

Inverse Proportion
- Exists between two quantities when they are related in such a way that an increase or
decrease in one quantity will produce an opposite change in the other quantity.

BUSINESS MATH MIDTERM REVIEWER | Page 10

Partitive Proportion
- A whole is divided into parts proportional to a given ratio.

Summary of the Types of Proportion:

𝑎 𝑐
Direct => 𝑏 = 𝑑
𝑤ℎ𝑒𝑟𝑒 𝑎𝑑 = 𝑏𝑐

𝑎 𝑐
Inverse => 𝑏 = 𝑑
, 𝑤ℎ𝑒𝑟𝑒 𝑎𝑏 = 𝑐𝑑

Partitive => whole divided into parts proportional to a given ratio

EXAMPLES:
1. If 12 gallons of gasoline cost 540 pesos, how much will 15 gallons of gasoline cost?

Step 1: Determine the type of proportion to be used (Direct)

Let a = 12, b = 540, c = 15, d = unknown Step 2: Represent your variables

𝑎 𝑐
𝑏
= 𝑑
Step 3: Form the equation that describes the proportion

𝟏𝟐 𝟏𝟓
𝟓𝟒𝟎
= 𝒅
Step 4: Substitute the given values to the equation

12(d) = 540(15) Step 5: Cross-multiply

d = 675 pesos Step 6: Divide both sides by 12

2. In 30 minutes, 2 men can transport 200 books from one building to another
building. How long will 8 men do the same job?

Step 1: Determine the type of proportion to be used (Inverse)

Let a = 2, b = 30, c = 8, d = unknown Step 2: Represent your variables

𝒂 𝒄
𝒃
= 𝒅
Step 3: Form the equation that describes the proportion

𝟐 𝟖
𝟑𝟎
= 𝒅
Step 4: Substitute the given values to the equation

2(30) = 8(d) Step 5: Inverse Proportion (ab = cd)

d = 7.5 minutes Step 6: Divide both sides by 8

BUSINESS MATH MIDTERM REVIEWER | Page 11

 3. Mrs. Delos Santos divided the amount of P144,000 between her two daughters, in
the ratio 5:7. How much did each one of them receive?

Step 1: Determine the type of proportion to be used (Partitive)

5 + 7 = 12 Step 2: Add the given ratios to find the whole

𝟓 𝟓
144,000 (𝟏𝟐) = 60,000 Step 3: Multiply 𝟏𝟐 by 144,000

𝟕 𝟕
144,000 (𝟏𝟐) = 84,000 Step 4: Multiply 𝟏𝟐 by 144,000

Therefore, Mrs. Delos Santos daughters received P60,000 and P84,000, respectively.

Try Yourself! (APPLICATION)

1. A film processor can develop 100 negatives in 5 minutes. How many minutes will it
take to develop 1,200 negatives?
2. The school cafeteria has raised the price of a cup of rice from 8 pesos to 10 pesos. If
the same rate of increase is applied to a regular order to viand which used to cost 20
pesos, how much does an order of viand cost now?
3. If a faucet drips at the rate of 3 drops every 5 seconds, how many drops will be
accumulated in 1 minute?
4. If 75 pesos is shared among three children in the ratio 3:7:15, how much should each
child receive
5. Is a US dollar is worth 46.50 pesos, how many dollars can be bought for 85,000 pesos?

VIII. Word Problems (Involving Ratio)

1. In a large city, 2 million cars are used to provide transportation daily. The average
number of people per car is 1.2. If the average number of people per car is increased
to 1.5, how many cars will be needed to fill in the transportation services?
2. The ratio of boys to girls in a class is 7:5. If there are 36 students in the class, how
many are boys?
3. Three brothers inherited a cash discount of 240,000 pesos and they divided it among
themselves at the ratio of 5:2:1. How much more is the largest share than the smallest
share?
4. 40 people joined a picnic. If the ratio of adults to children was 5:3, how many children
joined the picnic?
5. A certain pole casts a shadow 24 feet long. At the same time another poll 3 ft high
casts a shadow 4 ft long. How high is the first pole, given that the heights and shadows
are in proportion?
6. A college has a male-female ratio of 5:3. After some time, three more women joined
the class, changing the ratio to 10:7. How many students are now in the class?
7. With 1,200 students, a school has a student-teacher ratio of 30:1. How many
additional teachers must be hired to reduce the student-teacher ratio to 24:1?

BUSINESS MATH MIDTERM REVIEWER | Page 12

 8. A family has what they estimate to be a 30-day supply of food. However, after 10
days, only an 18-day supply of food is left. If they continue to eat at the same rate, in
how many days will the food last for the family?
9. It takes 15 minutes to cut a log into 3 pcs. How long will it take to cut a similar log
into 4 pcs?
10. 3 cavans of rice will last a family of 6 members in 5 weeks. At this rate, how many
weeks will 2 cavans of rice last for a family of 4 members?

IX. Single Trade Discount

Key Concept:
1. Trade Discount – the amount by which a manufacturer reduces the retail price of a
product that is sells to a retailer, rather than to the end customer.
*It is also the difference between the list price and the net purchase price.

2. List Price – manufacturer’s recommended price for which the retailer should sell the
item. It is sometimes called the retail price.

3. Net Price – amount of item to be paid by the retailer to the manufacturer.

Examples:
1. An item listed at 8,000 pesos is subject to a discount of 25%. What is the amount of
discount and net price?

Lp = 80,000, Dr = 25%, Np = ?, Td = ? Step 1: Find the given

Td = Lp x Dr Step 2: Identify the formula to be used

Np = Lp – Td

(For trade discount)

Td = 80,000 x 25% Step 3: Substitute the given values

Td = 20,000 Step 4: Multiply

(For net price)

Np = 80,000 – 20,000 Step 5: Substitute the given values

Np = 60,000 Step 6: Subtract

2. The JNT Garment Factory has sold 20,000 pesos worth of clothes to the Manansala
Boutique Store. The given amount represents the retail price of the clothes for
which the JNT Garment Factory has offered a 35% trade discount.
a. What is the actual amount paid by Manansala Boutique Store?

BUSINESS MATH MIDTERM REVIEWER | Page 13

 b. What is the trade discount?

Lp = 20,000, Dr = 35%, Np = ?, Td = ? Step 1: Find the given

Np = Lp (1 – Dr) Step 2: Identify the formula to be used

Td = Lp – Np

(For net price)

Np = 20,000 (1 – 0.35) Step 3: Substitute the given values

Np = 20,000 (0.65) Step 4: Subtract

Np = 13,000 Step 5: Multiply

(For trade discount)

Td = 20,000 – 13,000 Step 6: Substitute the given values

Td = 7,000 Step 7: Subtract

3. Find the discount rate if the net price of an item is 5,567.80 pesos after giving a
discount of 252.50 pesos

Td = 252.20, Np = 5,567.80, Dr = ? Step 1: Find the given

Lp = Np + Td Step 2: Identify the formula to be used

𝑻𝒅
Dr =
𝑳𝒑

(For list price)

Lp = 5,567.80 + 252.20 Step 3: Substitute the given values

Lp = 5,820.00 Step 4: Add

(For discount rate)

𝟐𝟓𝟐.𝟐𝟎
Dr = 𝟓,𝟖𝟐𝟎.𝟎𝟎 Step 5: Substitute the given values

𝟏𝟑
Dr = 𝟑𝟎𝟎 Step 6: Divide

𝟏
Dr = 4.33% or 𝟒 𝟑 % Step 7: Convert Fraction to Percent

**Text highlighted in red = final answer

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Try Yourself! (Application)
1. A manufacturer offers a 12.5% discount for a radio cassette. If the net price is 3,450
pesos, what is the suggested retail price?
2
2. A 16 3 % discount allowed on a flash drive amounted to 728.82 pesos. What was the
net price?
3. A store advertises a discount of P144.75 on a pair of shoes. If the discount is 25%, how
much do the shoes cost?
1
4. The net price of a bag after a discount of 163 % is 355 pesos. What is the list price?
5. The net price of a pair of pants is P650. What is the suggested retail price if a discount
of 35% is given?

X. Multiple Trade Discount

Key Concept:
- Discount Series: A list price is subject to two or more discounts.
- The single equivalent rate of discount is not simply the sum of the individual
discounts.

Examples:
1. An item listed for P4,000 has been given trade discounts of 30%, 20%, and 10% by
the manufacturer. What is the
a. Net price
b. Trade discount

Step 1: Find the given:

Lp = 4,000, Dr1 = 30%, Dr2 = 20%, Dr3 = 10%, Np = ?, Td = ?, Dr = ?

Np = Lp (1 – Dr1) (1 – Dr2) (1 – Dr3) Step 2: Identify the formula to be used

Np = 4,000 (1 – 0.30) (1 – 0.20) (1 – 0.10) Step 3: Substitute the given values

Np = 2,016 Step 4: Perform the operations

(for the trade discount)

Td = Lp – Np

Td = 4,000 – 2,016 Step 5: Substitute the given values

Td = 1,984 Step 6: Subtract

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 2. The list price of a washing machine is P30,500 subject to 10% trade discount. What
additional discount should be given to bring down the price to P20,000?

Lp = 30,500, Dr = 10%, Np = 20,000, Dr2 = ? Step 1: Find the given

Np = Lp (1 – Dr1) (1 – Dr2) Step 2: Identify the formula to be used

20,000 = 30,500 (1 – 0.10) (1 – Dr2) Step 3: Substitute the given values

20,000 = 30,500 (0.90) (1 – Dr2) Step 4: Subtract 1 – 0.10

20,000 = 27,450 (1 – Dr2) Step 5: Multiply 0.90 by 30,500

20,000 = 27,450 – 27.450 (Dr2) Step 6: Distribute 1 – Dr2 to 27,450

27,450 (Dr2) = 7,450 Step 7: Use Addition Property of Equality

𝟕.𝟒𝟓𝟎
Dr2 = Step 8: Divide both sides by 27,450
𝟐𝟕,𝟒𝟓𝟎

Dr2 = 27.14%

Try Yourself! (APPLICATION)

1. An item listed by a wholesaler for P750 less 10%, 5%, and 2% is reduced at a clearance
sale P474.81. What additional rate of discount has been offered?
2. What is the net price on a shipment of dinnerware that lists for P230,500 on which the
trade discounts are 30%, 20%, 10%, 5%?
3. A coffeemaker has been listed at a price of 2,990 pesos. To promote business by a
retailer, the appliance has been offered at P120 off if five or more items are
purchased at the same time. If a buyer purchase within three days, a further P42
discount off the price is allowed. What is the net price and the single equivalent rate
of discount if a buyer takes advantage of the offers?
4. An office desk listed at P4,440 less 2% and 10% was offered at a further reduced price
of P2,500. What additional rate of discount was offered?
1 2
5. A computer listed at P18,600 less 3 3 % and 63 % discount was offered at a clearance
price of P15,825. What additional rate of discount was offered?

XI. Cash Discounts and Terms of Sale

Key Concepts:
- Three types of cash discounts:
a. Ordinary – payment terms are based on the invoice date
b. Receipt-of-Goods – discount and credit period start on the day after the
merchandise has been received
c. End-of-Month – shifts the invoice date to the last day of the month

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 - Rate of Discount = expressed as a percent of the net amount of the invoice.
- Discount Period = indicates the time period when the cash discount can be applied
- Credit Period = time period when the invoice must be paid.

Examples:
1. The net price of merchandise is 20,000 pesos. The invoice is dated April 11 with
the following terms: 5/15, n/45. What is the amount payable if the invoice was
settled on
a. April 25
b. April 30

Np = 20,000, Terms of discount = 5/15, n/45 Step 1: Find the given

For April 25:

Ap = Np (1 – Dr) Step 2: Identify the formula to be used

Ap = 20,000 (1 – 0.05) Step 3: Substitute the given values

Ap = 19,000 Step 4: Perform the indicated operations

However, for April 30, the cash discount is no longer allowed since April 30 is not within
15 days after April 11. So, the amount payable is 20,000 pesos.

2. An invoice for P12,800 pesos dated July 16, terms 2/10, EOM, is paid on August 10.
What is the amount paid?

Np = 12,800, Terms of discount = 2/10, EOM Step 1: Find the given

Ap = Np (1 – Dr) Step 2: Identify the formula to be used

Ap = 12,800 (1 – 0.02) Step 3: Substitute the given values

Ap = 12,544 Step 4: Perform the indicated operations

Try Yourself! (APPLICATION)

1. The following invoices – all with terms 5/10, 2/30, n/60 were paid together on May 16.
a. Invoice no.1 dated March 30 for P39,445
b. Invoice no.2 dated April 15 for P59,550
c. Invoice no.3 dated May 10 for P86,250

What amount was remitted?

2. Manuel Insurance Company received an invoice for P24,500 dated January 22 with
terms 2/15, 1/30, n/60.
a. If the invoice is paid on Jan 31, how much is to be paid?
b. If the invoice is paid on Feb 22, how much is to be paid?
c. If the invoice is paid on Mar 22, how much is to be paid?

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 XII. MARK-UPS, MARGINS, AND MARKDOWNS

Key Concepts:
- Mark-up: Difference between the selling price of an item and its cost.
- Margin: Markup is computed based on the selling price
- Markdown: Devaluation of a product. It is an attempt to sell something at a lower
price than originally planned because it is not selling.

Examples:
1. A merchant has bought 20 pairs of shoes at wholesale price of P36,000. A 30%
markup based on cost is imposed. What is the selling price per pair of shoes?

𝟑𝟔𝟎𝟎𝟎
C= = 1,800 Rmu = 30% Sp = ? Step 1: Find the given
𝟐𝟎

Mu = Rmu x C Step 2: Identify the formula to be used

Mu = 0.30 x 1800 Step 3: Substitute the given values

Mu = 540 Step 4: Multiply

Sp = C + Mu Use the formula for selling price

Sp = 1,800 + 540 Step 5: Substitute the given values

Sp = 2,340 Step 6: Add

2. An office equipment has been originally priced at P9,800. During the inventory the
price is lowered at 20% markdown. What is the new selling price?

Sop = 9,800 Rmd = 20% Snp = ? Step 1: Find the given

Snp = Sop (1 – Rmd) Step 2: Identify the formula to be used

Snp = 9,800 (1 – 0.20) Step 3: Substitute the given value

Snp = 7,840 Step 4: Perform the indicated operations

3. What is the cost of an article selling for P650 if the mark-up is 30% of the selling
price?

Sp = 650 C=? Mu = 30% of Sp Step 1: Find the given

Sp = C + Mu Step 2: Identify the formula to be used

650 = C + (0.30)(650) Step 3: Substitute the given values

C = 455 Step 4: Perform the indicated operations

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Try Yourself! (APPLICATION)
1. Sofa sets were purchased for P25,500, less 20% and 15%. They were sold for P26,540.
a. Find the rate of markup based on cost
b. Find the rate markup based on selling price

2. A dealer bought computers for P12,400, less 50% and 10%. They were sold for P13,950.
a. Find the cost of computer
b. Find the rate of markup based on cost
c. Find the rate markup based on selling price

3. Sangalang Optical sells eyeglass frames for P2,500. If the company wanted to offer the
lower price of P1,800, what rate of markdown should they offer?

4. A stage play of Noli Me Tangere was advertised at a price of P200 per person. If the
tickets were purchased at least two weeks in advance, the price would be lowered to
P150 per person. What rate of markdown had been offered?

XIII. Perishables, Break-Even Point and Target Profit

Key Concepts:
- Perishables: Things, especially foodstuffs, likely to decay or go bad quickly.
- Break-even Point: A decision making aid that enables a business to determine whether
a particular volume of sales will result in a loss or profit
- Variable Cost: Costs that change proportionally in relation to production sales such as
the materials used in the production of the cost
- Fixed Cost: Costs that remain roughly the same regardless of sales or output levels
including rent, insurance, and wages
- Revenue – total income received
- Profit – Revenue > Expense
- Loss – Revenue < Expense

What can Break-even point be used for?

1. See if monthly income is more than your expenses
2. Determine minimum price product that can be sold for
3. Determine optimum price product that can be sold for
4. Calculate effects of marketing programs on price

EXAMPLES:
1. Marie Fe owns a company that manufactures batteries. Based on his report of past
productions, 8% of the batteries made are defective and cannot be sold. Fe’s
production team made 9,500 batteries. It costs P14 to produce 1 battery. If Fe
wants a 35% markup based on selling price (margin), what should Fe price each
battery to make her target market?

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Spoilage rate = 8%
Cost = P14 Step 1: Find the given
35% = mark-up rate
9,500 = production

Step 2: Make a table to help you find the selling price

Cost 65% 14
Mark-up 35% -
Selling Price 100% N

𝟔𝟓% 𝟏𝟒
𝟏𝟎𝟎%
= 𝒏
Step 3: Use the concept of ratio to help you find the value

SP = P21.54 Step 4: Perform the operations to find your selling price

(For total target sales)

= Initial Selling Price x Prod

21.54 x 9,500 Step 5: Substitute the given value

TTS = 204, 650 Step 6: Multiply

(For spoilage)
= Spoilage Rate x Prod

8% x 9500 Step 7: Substitute the given value

Spoilage = 760 Step 8: Multiply

(For selling price of perishables)

𝑻𝒐𝒕𝒂𝒍 𝒕𝒂𝒓𝒈𝒆𝒕 𝒔𝒂𝒍𝒆𝒔
= 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏−𝑺𝒑𝒐𝒊𝒍𝒂𝒈𝒆

𝟐𝟎𝟒,𝟔𝟑𝟎
= 𝟗𝟓𝟎𝟎−𝟕𝟔𝟎
Step 9: Substitute the given value

Selling Price of Perishables = P23.41 Step 10: Perform the operations

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 2. Rey owns a burger stand. The cost for making a burger is P7 and he sells it for P10.
If his fixed cost per month is P10,000, how many burgers must be sold to reach the
break-even point?

F = 10,000, P = 12, V = 7 Step 1: Find the Given

𝑭
X= 𝑷−𝑽
Step 2: Identify the formula to be used

𝟏𝟎𝟎𝟎𝟎
X= Step 3: Substitute the given values
𝟏𝟐−𝟕

𝟏𝟎𝟎𝟎𝟎
X= 𝟓
Step 4: Subtract 12 and 7

X = 2000 burgers Step 5: Divide

3. Tristan bought bottles of food supplements at P1,800 each. He is planning to sell

this at 15% mark-up based on cost. At this selling price and fixed cost of P40,000,
how many bottles of food supplement must he sell to be able to have a break-even
point? If he wants to earn a minimum of 100,000 pesos by just selling the bottles,
how many bottles must he sell?

Cost = 1800, Mu = 15%, F = 40,000, TP = 100,000 Step 1: Find the given

(Finding the selling price for Break-even point)

P = C (1 + Mu) Step 2: Identify the formula to be used

P = 1,800 (1 + 15%) Step 3: Substitute the given values
P = 2,070 Step 4: Perform the indicated operations

(Finding the Break-even point)

𝑭
X= 𝑷−𝑽

𝟒𝟎𝟎𝟎𝟎
X= 𝟐𝟎𝟕𝟎−𝟏𝟖𝟎𝟎
Step 5: Substitute the given values

X = 149 bottles Step 6: Perform the operations

(Finding the target volume)

𝑭+𝑻𝑷
Target Volume = 𝑷−𝑽

𝟒𝟎𝟎𝟎𝟎+𝟏𝟎𝟎𝟎𝟎𝟎
TV = 𝟐𝟎𝟕𝟎−𝟏𝟖𝟎𝟎
Step 7: Substitute the given values

TV = 519 bottles Step 8: Perform the operations

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Try Yourself! (Application)
1. Gerry owns a lemonade stand. It costs him P2 to make a glass of lemonade and sells it
for P10. Rent of his premises was at 2,000 pesos, monthly insurance was 1,000 and
other fixed costs at 10,000 pesos. How many glasses of lemonade must be sold to
obtain a break-even point?
2. JM has a food stall in Quezon City. It sells Filipino foods and handmade products. He
ordered 25kg of chicharron at P105 per kg. JM expects that 30% of the chicharron will
spoil after 5 days and cannot be sold. He wants a 25% markup based on his cost. What
should JM price his chicharron so he can achieve his target markup?
3. Gab bought bottles of vitamins worth P1,200 each. He is planning to sell at 10%
markup on cost. At this selling price and a fixed cost of 20,000 and a monthly
4
insurance which is 5 of his fixed cost. How many bottles of vitamins must he sell to be
able to reach a break-even point? If he wants to earn a minimum of P130,000 by just
selling the vitamins, how many bottles must he sell?

XIV. Commission

Key Concepts:
- Commission: Amount of money that an individual receives based on the level of sales
he/she has obtained.
- Straight Commission: Salespeople whose earnings come from commission only work
- Graduated Commission: Rate of commission as their sales increase

Examples:
1. Sir Almelor is paid a straight commission of 6% on his sales. During February, his
sales reach P380,000. What is his commission?

S = 380,000, Rc = 6%, C = ? Step 1: Identify the given

C = S x Rc Step 2: Identify the formula to be used

C = 380,000 x 6% Step 3: Substitute the given values

C = 22,800 Step 4: Multiply

2. Larry is paid 4% commission on the first P100,000 of monthly sales and 10% on all
sales over P100,000. Last month his sales have reached P380,000. Find his
commission

C = (380,000 – 100,000) (4%) Step 1: Find the commission for first P100,000

C = 4,000

C = (380,000 – 100,000) (10%) Step 2: Find the commission over P100,000

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C = 28,000

C = 4,000 + 28,000 Step 3: Add 4,000 and 28,000

C = 32,000

Try Yourself! (APPLICATION)

1. Tony is paid a straight commission of P60 for each item that he sells. Last month
he has sold 100 items. What is his commission?
2. A computer salesman earns a 5.5% commission on each sale. If he sells 5 computers
in one week for a total of P105,000, how much commission does he earn?
3. A medical rep. receives a 3.5% commission for selling medication to physicians. If
he sells P1,035,000 worth of medication, then how much commission will he earn?
4. A wholesale food rep. earns a 3.25% commission on sales. If her annual sales is
P1.61M pesos, how much commission will she earn?

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APPENDIX (Formula Cheat Sheet)

Cost + Markup = Selling Price

-Cost + Selling Price = Markup

Cost = Selling Price – Markup

Reduced Price = Original Price – Markdown

Markup = Rate of Mark-up x Cost (Rate of Mark-up on Cost)

Markup = Rate of Mark-up x Selling Price (Mark-up based on Selling Price)

Trade Discount = Discount Rate x List Price

Net Price = List Price – Trade Discount

𝑇𝑟𝑎𝑑𝑒 𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡
List Price = 𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡 𝑅𝑎𝑡𝑒

𝑇𝑟𝑎𝑑𝑒 𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡
Discount Rate =
𝐿𝑖𝑠𝑡 𝑃𝑟𝑖𝑐𝑒

Net Price = List Price (1 – Discount Rate)

Net Price in Series of Discounts:

Net Price = List Price (1 – 1st Discount Rate) (1 – 2nd Discount Rate) . . .

Single Discount Rate

Single Discount Rate = 1 - (1 – 1st Discount Rate) (1 – 2nd Discount Rate) . . .

Cash Discount = Discount Rate x List Price (applies to Ordinary, EOM, ROG)

Amount Payable = Net Price – Cash Discount

𝑇𝑜𝑡𝑎𝑙 𝑇𝑎𝑟𝑔𝑒𝑡 𝑆𝑎𝑙𝑒𝑠

Selling Price of Perishables = 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛−𝑆𝑝𝑜𝑖𝑙𝑎𝑔𝑒

Target Sales = Production x Initial Selling Price

Initial Selling Price = Cost x (1 + Mark-up Rate)

Spoilage = Production x Spoilage Rate

Price (Volume of outputs) = Fixed Cost + Variable (Volume of outputs)

𝐹𝑖𝑥𝑒𝑑
Output = 𝑃𝑟𝑖𝑐𝑒−𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒

BUSINESS MATH MIDTERM REVIEWER | Page 24

APPENDIX (Formula Cheat Sheet)

𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡
Break Even Point = 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑀𝑎𝑟𝑔𝑖𝑛

Contribution Margin = Selling Price – Variable Cost

𝑭𝒊𝒙𝒆𝒅 𝑪𝒐𝒔𝒕+𝑻𝒂𝒓𝒈𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕

Target Volume = 𝑪𝒐𝒏𝒕𝒓𝒊𝒃𝒖𝒕𝒊𝒐𝒏 𝑴𝒂𝒓𝒈𝒊𝒏

Commission = Commission Rate x Sale Price

END OF REVIEWER FOR BUSINESS MATH!

Goodluck on your Midterms! 😊

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