BUSINESS MATH REVIEWER
THIRD QUARTER
2ND SEMESTER
Converting Fractions to Decimals: 2. Subtraction of Fractions
Divide the numerator (top number) by the Same steps as addition, but subtract
denominator (bottom number). numerators instead.
Converting Fractions to Percentage:
Divide the Numerator by the Denominator
Multiply by 100
Converting Decimals to Percentages:
Multiply the decimal by 100.
Converting Decimals to Fractions:
Identify the place value of the decimal.
For example, for [Link], the last digit is in 3. Multiplication of Fractions
the hundredths place. Multiply the numerators and
Write the decimal as a fraction. denominators directly:
Use the place value to form the fraction:
75
0.75 =
100
Simplify the fraction if possible.
4. Division of Fractions
Multiply by the reciprocal of the second
Converting Percentages to Fractions:
fraction:
Write the Percentage as a Fraction Over
100.
Simplify the Fraction
Converting Percentages to Decimals:
Divide the percentage by 100 OR
Move the decimal point two places to the
THREE MAIN TYPES OF PROPORTIONS:
left.
1. Direct Proportion
Operations with Fractions
When one quantity increases, the other
1. Addition of Fractions
also increases at the same rate (or when
If the denominators are the same, simply
one decreases, the other also decreases).
add the numerators:
If the denominators are different, find the
Least Common Denominator (LCD),
convert the fractions, then add:
2. Inverse Proportion
When one quantity increases, the other
decreases proportionally (and vice versa).
3. Partitive Proportion Formula for Break-Even Point:
Used to divide a quantity into parts based
on a given ratio.
EXAMPLE:
Mark-up refers to the percentage or amount Simple Interest (SI) is the interest earned or
added to the cost price of a product to paid on a principal amount over a specific
determine its selling price. This financial period, based on a fixed percentage rate. It does
principle is widely utilized in retail, not compound, meaning the interest is
manufacturing, and service industries to ensure calculated only on the original amount.
profitability.
Formula for Mark-Up
Mark-on refers the additional increase in the
price of a product during peak season.
Mark-Down is the opposite—it means reducing
the price of a product, usually during sales or EXAMPLE:
clearance events in order to get rid of “poor-
sale” products.
Margin is the selling price minus the cost of the
goods sold.
Profit occurs when revenue is greater than
expenses, meaning the business earns more
than it spends.
Formula for Profit
Profit = Net Sales – Cost
Loss occurs when expenses are greater than
revenue, meaning the business spends more
than it earns.
Formula for Loss
Profit = Cost – Net Sales
Break-even point is the point where a
business's total revenue equals total expenses,
meaning there is neither profit nor loss.
