BUSINESS MATH

Review
Coverage
● Fractions, Decimals and Percentages
● Ratio and Proportion
● Buying: List Price, Discounts, Freight, Product Cost
○ Trade Discount
○ Cash Discount: Ordinary Dating, ROG, EOM
● Selling: Markup/Markdown, Profit/Loss, Break-even
● Commission and Interest
● Salaries and Wages: Gross and Net Pay, GMC,
What to bring
● Calculator
● 2023 Tax Table
● 2023 SSS, PHIC, HDMF Contribution Table

Types of Test
● Multiple Choice (both theories and problem solving)

● 60 items
Question 1
Change 0.7 to fraction.
Question 2
Write the number in words:
10.23456
Question 3
Write “Seventeen and nine hundred twenty-three thousandths in number.
Question 4
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?
Question 5
You are using a recipe for meatloaf that calls for 10 grams of ground beef. The
recipe is for 5 servings but you want to make enough for 8. How much ground
beef should you use?
Question 6
3 pipes take 60 minutes to water the field. How much time it will take to water the
field with 6 pipes.
Question 7
Mrs. De Luna divided the amount of Php 120,000 between her two daughters in
the ratio 5 : 7. How much did each one of them receive?
Question 8
An item listed at Php 80,000 is subject to a discount of 25%. What is the amount
of discount and the net price?
Question 9
A 30% discount on a desk top computer amounted to Php 15 000. What are the
list price and the net price of the computer?
Question 10
Determine the amount of payment on January 11, 2021 for a product with invoice
price at P80,000 with, Trade Discount of 20%, and Cash discount of 2/10, n/30.
● The date of invoice is January 2, 2021.
Question 11
Determine the amount of payment on January 11, 2021 for a product with invoice
price at P80,000 with, Trade Discount of 20%, and Cash discount of 2/10, n/30.
● The date of invoice is December 31, 2020.
Question 12
An invoice dated March 12, 2021 has payment terms:
4/10, n/30, R.O.G. and goods are received on March 21, 2021.
● When you will start counting to know the last day of disc.?
● When is the last day of 4% discount & due date?
● When is the first day of the discount period?
Question 13
BM Co. purchased products with List Price of P100,000 and Trade Discount of
30%. Determine the amount paid if the date of payment is March 5, 2021 and the
cash discount is 2/10, under EOM method.

Date of invoice:
● Feb 20, 2023
● Jan 20, 2023
Question 14
Papasa Ah Co. purchased merchandise from Bagsacc Co.. Bagsacc Co. offered
20% discount if Papasa Ah Co. will purchase 150 units of merchandise. Papasa
Co. Purchased 160 merchandise with an invoice price of P80,000. What is the
cost of merchandise per unit if the total freight was P800 under FOB-shipping
point? What if FOB-destination?
Question 15
Hairbrushes from China, solely produced by Mulan Hair
Studio Inc., cost the manufacturer Php 15.00 per unit to
produce. If the selling price is Php 50.95 each unit. How
much is the markup of each unit?
Question 16
Faye is engaged in buy-and-sell business of perfumes. She bought
10 boxes of perfumes. Each box costs P 12, 000.00 and contains a
dozen of perfume bottles. She is planning to sell one perfume
bottle at P 1, 500.00. What is his expected profit on the 10 boxes of
perfumes?
Question 17
BF Corporation plans to produce porcelain bowls that will be sold
at P20.00 per unit. Manufacturing any quantity of bowls will cost
an estimated P 20, 000.00 in fixed costs. The variable costs of
producing each bowls are estimated to be P10.00. How many
bowls must they sell to breakeven? What sales must BF earn on the
bowls to reach the breakeven point?
Question 18
Faith works as a sales supervisor. She receives 25%
commission from all her sales plus a 5%
commission from all sales made by her agents.
During the month of august, her total sales have
amounted to Php 45,000 while her agents’ total
sales is Php 73,000. How much is her total
commission?
Question 19
Jerome sells creamy carbonara from his supplier
Carbonara ni Japay and is paid a straight commission of
Php10.00 on each pack that he sells. During August, he
sold 175 packs of creamy carbonara. How much is his
commission?
Rossana sells insurance policies and receives a fixed salary of P13,000 per
month. Also, she receives commission if she can close certain amount of deal.
Refer to the table below for the commission rates.
Amount of closed deal(s) Commission rate
Up to P500,000 4%
Excess of P500,000 to P750,000 5%
Excess of P750,000 6%

Assume that commissions will be received by the end of the month of sale. How much
will Rossana earn for the month if she will close deals amounting to:
a. P350,000
b. P665,000
c. P900,000
d. P1,840,000
Question 21

Using the exact interest method, what is the

amount of interest on a loan of P88,000 at 7%
for 88 days?
Question 22

Using the ordinary interest method, what is

the amount of interest on a loan of P19,500 at
6% interest for 160 days?
Question 23

Ryan McPherson borrowed P3,500 on June 15 at

11% interest. If the loan was due on October 9,
what was the amount of interest and the maturity
value on Ryan’s loan? (Use exact interest method)
Question 24
Jessa works as the Sales Manager in Toyota. Her monthly salary is
₱40,000. She received a total of ₱150,000 as her commissions for March.
Compute for the following:

1. Gross Pay
2. GMC
3. Taxable Income
4. Withholding Tax
5. Net Pay
Question 25

Kal works an accountant at SGV and Co. Her monthly salary is

₱65,000. During March, her total overtime hours were 30 hours. She
is paid an overtime rate of ₱550 per hour. Compute the following:

1. Overtime Pay
2. Gross Pay
3. Total GMC
4. Withholding Tax
5. Net Pay