Business Calculation

Chapter 1
Per cent, Ratio, Proportion and
Variation
Percent
Means parts per one hundred

1%, 20%, 80%...


2
1. Changing a Percent (%) to
a Fraction
Step 1: To change a percent to a fraction,
drop the % symbol and write the given
number over 100.


Step 2: Then simplify the fraction, if
possible.
3
Example
The chemical makeup of the earths
atmosphere is 78% nitrogen, 21%
oxygen, and 1% other gases. Write
each percent as fraction.
In 1978, 46.1% of married women
aged 25-54 were employed full-time.
Write this percent as a fraction.
4
2. Changing a Percent to a
Decimal
5

Example

6
3. Changing a Decimal to a
Percent
To change a decimal to a percent,
multiply the decimal by 100 by moving
the decimal point 2 places to the right,
and then insert a % symbol.

0.321 = 0.321 x 100
= 32.1%

7
Example
Write 0.5343 as percent

Land areas make up 0.291 of the
Earths surface. Write this decimal as
a percent.


8
4. Changing a Fraction to a
percent
Step 1: write the fraction as a decimal by
dividing its numerator by its denominator.

Step 2: Multiply the decimal by 100 by
moving the decimal point 2 places to the
right

Step 3: Insert a % symbol
9
Example

10
Solving Percent Problems
a. Finding the amount
Formula: Amount = percent x base
Ex: What number is 84% of 500?
What number is 160% of 15.8?
What number is 240% of 80?
11
Solving Percent Problems
(cont)
b. Finding the percent
38 is what percent of 40?
14 is what percent of 32?
An air bag is estimated to add an
additional $500 to the cost of a car. The
cost of an airbag is what percent of a
cars $16,295 sticker price?
12

13
Solving Percent Problems
(cont)
14
Percent of increase or
decrease
Percent means hundredth
25% = 25/100 = 0.25 =
50% = ?
5% = ?


% 100
value original
in value change
in value decrease or increase Percent
15
Percent (Example)
1. The price of Proton Wira has increased by 10%. If
the new price is RM44,000, what was its original
price?
2. A salesman is offered the following commision:
3% on the first RM10,000 sales
5% on the next RM15,000 sales
8% thereafter.
Find his commission if his sales totalled RM50,000.

Answer: RM40,000, RM3050



16
Ratio (:)
A ratio expresses a relationship
between two or more factors (numbers).
For example price earnings ratio.
17
Ratio (Example)
1. Find the ratio of 10 to 100
2. In 1994, the net profits of ABC Sdn Bhd
were RM10,000 and its total assets were
RM200,000. Find the ratio of the net profits
to the total assets.
3. Three partners are to share RM4500 in the
ratio of 2:3:4. Find the amount each would
receive.

Answer: 1:10, 1:20, RM1000, RM1500, RM2000
4. The profits of a small business were
distributed among Fuziah, Aminah,
Fatimah in the ratio 2: 5: x. If fuziah
received Rm 140 and Fatimah received
RM 490, find

a.) The value of x b.) the profits of the
business
18
Ratio (Example)
19
Proportion
Proportion is the expressed equality of
two ratios.
bc ad
d
c
b
a
then , If
20
Proportion (Example)
1. Solve for K, given 13:4 = 52:k
2. If 500m
3
of timber costs RM1000, find
the cost of 200m
3
.



Answer: 16, RM400
21
Direct variation
If y varies directly as x, we write



cx y
x y

constant a is c where
22
Direct variation (Example)
1. If y varies with x and y=5 when x=1,
find
(a) y in terms of x
(b) y if x=3
(c) x if y=10

Answer: y=5x, 15, 2

23
Direct variation (Example)
24
Inverse variation
When one factor is expected to decrease or
increase proportionately to any increase or
decrease in another factor, then we say the
two factors are in inverse variation.
If y varies inversely as x, then
x
c
y
c yx
x
y

1
25
Inverse variation (Example)
1. If it takes 6 trucks to move 300
tonnes of soil in 12 days, find the
number of days 9 trucks take to
remove the 300 tonnes of soil.



Answer: 8 days
26
Compound Variation
Compound variation is particularly
useful when we have three of more
factors to consider.
27
Compound Variation (Example)
If 20 men working for 5 days can harvest 2000 bags
of cocoa, find
(a) the number of bags that can be harvested by 30
men in 3 days.
(b) the number of men needed to harvest 4000 bags
of cocoa in 8 days.
(c) the number of men needed to harvest 2000 bags
in 10 days.
(d) the number of days it will take 50 men to harvest
3000 bags.

Answer: 1800, 25, 10, 3