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What will we be expected to learn?
Course Description
1. Business Maths
2. Statistics
3. English
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Course ArrangementProgress:
50 hrs 12.5 weeks
Assessment:
1. Daily performance (30%) 2. Final Examinations (70%) Tests (~2 hours) Class performance
(discussion, practice, assignments)
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Business Maths 1. Basic Business Mathematics 2. The Time Value of Money
a. Simple Interestb. Compound Interestc. Annuitiesd. Discounted Cashflow Analysis
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Statistics 1. Presentation of Data 2. Measures of Central Tendency
3. Measures of Dispersion4. The Normal Distribution5. Measures of Correlation and Regression6. Index Numbers7. Time Series Analysis
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Suggested Further Reading Materials
1. Calculus
2. Linear Algebra
3. Probability and Statistics
4. Operational Research
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Software
1. Excel
2. SPSS
3. SAS/STAT
4. Matlab
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Topic 0 Preparation
1.Expressions
2.Calculation
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Topic 1 Basic Business Maths
1.Mark-up
2.Margin
3.Markdown
4.Discount
5.Commission
6.Tax
7.GST*
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What is the main concern of a company?
Profit
Profit = Selling Price - Cost Price
Topic 1 Basic Business Maths
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1. Mark-up
An amount added to the cost price and is expressed as the percentage of the cost price
cost pricecost price
Mark-Up(%)=Profit
Cost Price
Selling Price-Cost PriceCost Price
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Formula Transformation
SP= CP(1+MR)
CP=SP
1+MR
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2. Margin
An amount added to the selling price and is expressed as the percentage of the selling priceselling price
selling price
Margin(%)=Profit
Selling Price
Selling Price-Cost PriceSelling Price
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Formula Transformation
CP= SP(1-PM)
SP=CP
1-PM
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3. Mark down
A reduction from the existing price.
Marked-Down Price=Original Price (1-MR)
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4. Discount
A reduction on the selling price (list price).
Discounted Price=Selling Price (1-Discount Rate)
Compare:
Discount Discounted Price
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Types of Discount
1. Cash Discount2. Trade Discount3. Chain Discount4. Volume Discount
Discount Price=Selling Price (1-Discount Rate)
1 2 3Discount Price=SP (1-DR ) (1-DR ) (1-DR )......
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5. Commission
This is an incentive for a salesman to sell more, work harder.
Commission=Sales Commission Rate
CommissionSales=Commission Rate
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1. Commission Only2. Retainer + Commission Total Remuneration (Earnings) =
Total Remuneration (Earnings) =
3. Multiple commission
(Sliding Scale of Commission)
S × CR
Types of Earning(3)
R + S × CR
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You are offered the choice of being paid commission only at 10% on all sales or a salary of $1,000 per month plus commission of 5% on sales. Which would you choose?
Package 1: $18,000 × 10% = $1,800
Sales: $18,000 in a month
Package 2: $1,000 + $18,000 × 5% = $1,900 At what point can the two packages make
the same amount of earnings?S × 10% = $1,000 + S × 5%S = $20,000
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The sales level at which it would make no difference which package you choose is called the Indifference Point.
Commission only OR Retainer + Commission
Indifference Point
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6. Tax
PAYGGST
Company Tax
Australian Taxation Office State Administration of Taxation
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A broad-based consumption tax (10%) on goods, services, and anything else, including imports, consumed in Australia. Paid by the final consumers.
There are exemptions for some items: most educational courses health food fresh food
GST
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GST
2. Price(incGST) = Price(exGST) + GST= Price(exGST)(1+10%)1. GST = Price (exGST)×10%
3. Price(incGST) = Price(exGST) × 110% Price(incGST) = Price(exGST) + GST
= Price(exGST) + Price(exGST) ×10%
= Price(exGST) ×(1 + 10%)
= Price(exGST) ×110%
GST = Price(exGST) × 10%
1 P rice(incGST)11
Pr ice(incGST) 10%110%
14.G ST Price(incG ST )11
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Company Tax = Taxable Profit ×30%
A Company is required to pay Company Tax at a Rate of 30% of Taxable Profit.
material
Company Tax
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Calculate the tax based on the level or bracket of income the taxpayer is in.
PAYG (Pay As You Go)
Taxable Income Tax on this income$1 - $6,000 Nil$6,001 - $35,000 15c for each $1 over $6,000$35,001 - $80,000 $4,350 plus 30c for each $1 over $35,000$80,001 - $180,000 $17,850 plus 38c for each $1 over $80,000$180,001 and over $55,850 plus 45c for each $1 over $180,000