Business math is used by companies and commercial enterprises to record and manage business operations. Math is used in accounting, inventory management, marketing, sales, and financial analysis. Business math includes courses taken at the undergraduate level by business students. The courses are usually less detailed and difficult than math courses for people majoring in mathematics or science. The two most common forms of business math include business statistics and business calculus. Problems investigated by these topics usually involve real-life problems faced by businesses and individuals on a daily basis.

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# Business Math

## Categories within Business Math

### Managerial Statistics

Business Statistics is the science of good decision making in the face of uncertainty.

### Business Calculus

Business Calculus is traditional calculus applied to business scenarios and situations.

### Calculating the number of workstations needed

A plant manager plans to purchase new workstations. He has three choices andtheir prices are listed below. Workstation Cost A $55,000 B $45,000 C $85,000 The new workstation will be used to produce three products. The annual demands for the three products and their processing times on each type of workstations are as the fo

### ANALYTICAL HIERARCHY PROCESS is Used in Decision Making

Please see the files below, thank you! CB600 Game Theory Game Theory III 7. Bimatrix Games We have encountered various ways of solving constant-sum games in the previous sections. Now we turn to the case where the sums of the pay-offs of the two players do not add up to a constant. In this case, we c

### Computing Average Daily Balance and Finance Charge

Sept 16 bill date. Previous balance is $1,700 1700 x 3 da = 5,100. I counted Sept 17, 18, 19) not Sept 16 Sept 19. Balance is 5,100 Sept 19 Pymt. 57.00. (5,100 - 57.00 = 5,043). New bal 5,043 (From Sept 19 to Sept 30 I counted 11 days. I did not count Sept 19) 5,043 x 11 days

### Impact of Deferred Taxes on Net Income for ACME

Stephanie Delaney, CPA, is the newly hired director of corporate taxation for Acme Incorporated, which is a publicly traded corporation. Ms. Delaney's first job with Acme was the review of the company's accounting practices on deferred income taxes. In doing her review, she noted differences between tax and book depreciation met

### interest rate, compound amount and loans

Section 5.1 #2 Find the interest on each of these loans $35,000 at 6% for 9 months #4 Find the interest on each of these loans $1875 at 5.3% for 7 months #8 Find the interest on each of these loans $8940 at 9%; loan made on May 7 and due September 19 #16 Find the future value of each of these loans $3475 loan at 7

### Growth rate of Janebury Corporation

Sales for Janebury Corporation's just-ended year were $8 million. Sales were $4 million 2 years earlier. a. At what rate did sales grow? Round your answer to the nearest whole. Suppose someone calculated the sales growth for Janebury Corporation in part a as follows: "Sales doubled in 2 years. This represents a growth of 100

### Recording Bond Issuance

1. Heathrow issues $1,400,000 of 5%, 15-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,209,757. Required: 1. Prepare the January 1, 2011, journal entry to record the bonds' issuance. (Omit the "$" sign in your response.)

### Financial Engineering

Financial Engineering is the application of mathematics and computer programming skills to solve certain problems in finance drawing on tools of statistics, economics, computer science and applied mathematics. Investment banks, commercial banks, insurance companies, corporate treasuries and regulatory agencies employ financi

### Assets Liabilities And Equity

WACC The Patrick Company's year-end balance sheet is shown below. Its cost of common equity is 16%, its before-tax cost of debt is 13%, and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm has 576 shares of common stock outstanding that sell for $4.00. Calculate Patrick's WACC usin

### Calculating Probability with Replacement

An urn contains 7 blue and 3 yellow chips. If the drawing of chips is done with replacement, determine the probability of: (a) Drawing three yellow chips. (b) Drawing a blue chip on the first draw and a yellow chip on the second draw. (c) Drawing a blue chip on the second draw given that a yellow chip was drawn on the first

### Commodity investment and the risks of annuities

You invest $10,000 in an agricultural crop commodity today. 1. What commodity did you select? Why? 2. Use the internet to check today's prices as listed in the U.S. Department of Agriculture's crop reports at their worldwide website: www.usda.gov a. What is the price now? b. What was the price a year ago?

### Mortgage Calculations: Can Joe afford his future home?

What is known: The purchase price of the house is $75,000 Joe has $10,000 in savings Joe makes $15 per hour and works 40 hours per week 30-year mortgage interest rate of 6.25% and a monthly payment of $439.00 15-year mortgage interest rate of 5.25% and a monthly payment of $575.00 Down payment: 5% minimum Taxes last year

### The Final Price Adjustment: Defective Pricing

Calculate the amount of the final price adjustment because of defective pricing based on the following: Contractor unintentionally overpriced their material costs by $75,000 and under-priced their direct manufacturing labor costs by $50,000. Overhead rates used to price the original contract are given below: Material OH

### Construct a pro forma income statement for the first and second year in the given case.

Construct a pro forma income statement for the first year and second year for the following assumptions: -Units of Sales in Year 1: 110,000 -Price per Unit: $11 -Variable cost per unit: 25% -Fixed Costs: $129,000 -Income taxes: 20% -Interest Expense: $170,000 In year 2, Price per unit increases to $13.50, and unit of sa

### Pessimistic and Optimistic Decision Maker

A student group must order hot dogs for a concession stand at a sporting event. In the past, demand has been 7, 8, 9, or 10 dozen hot dogs for the event, depending on attendance and the weather. They need to order the hot dogs and buns the week before the event and will not be able to return any unused invent

### Decision tree for test procedures and computing EVSIs

Mark Harris, Production Manager of Medical Electronics Inc. is preparing for the delivery of one of his company's new blood analyzers to the Hershey Medical Center. All that remains is to subject the unit to a test procedure to determine whether it meets its design specifications. They will earn a profit of $3100 if the analyzer

### Accounting: The Sarbanes-Oxley Act

It sometimes seems like there is always an accounting scandal on the news. There have been plenty of investigations into the different businesses that had the accounting scandals. When the investigations are finished, the findings almost always show that an accounting gimmick was used to manipulate the financial statements. R

### Dimensional Analysis: Distance, Density, Speed, Value

Please use Dimensional analysis technique and show the work. 1-Approximately how many dollars worth of pennies would you need to place side by side to cover a total distance of one mile? 2-The speed limit on many Australian highways is 100.0 kilometers per hour. Convert this to miles per hour. 3-What is the volume in mi

### Shares and Offerings

Refer to Marvin Prospectus Appendix a) If there is unexpectedly heavy demand for this issue, how many extra shares can the underwriter buy? b) How many shares are to be sold in the primary offering? How many will be sold in the secondary offering? c) One day post-ISO, Marvin shares trades at $105. What was the degree of un

### Accounting for Non-Accounting Majors

1. Explain what is meant by Generally Accepted Accounting Principles (GAAP). 2. What is the FASB, and what does this organization do? 3. What is the SEC, and what does this organization do? 4. In light of the ongoing economic crisis, do you think these organizations are doing a good job? Why or why not?

### How Many Hamburgers?

While Charlie is out of the shop, a local meat vendor calls and asks to speak to the manager of Brubaker's Grill regarding a money saving deal he can offer on hamburger meat. Joe is excited to talk with the vendor. He is anxious to prove to Charlie that he can be a manager, so he arranges a meeting with the vendor to explore the

### Weighted Averages

Calculate Company A's weighted average cost of debt, given the following information: (a) Tax Rate: 20%, (b) Average Price of Outstanding Bonds: $1,120, (c) Coupon Rate: 5%, (d) NPER: 27, (e) Debt: $33,000,000, (f) Equity: $24,000,000, and (g) Preferred Stock: $5,000,000. Calculate Company B's weighted average cost of equity

### Determining the royalty per bundle that would permit a 12% profit margin.

Debbie's Book Nook sells textbook material bundles for $17.00 each, the variable cost per pack is $12.50, fixed costs for this operation are $325,000, and annual sales are 117,000 bundles. The unit variable cost consists of a $3.50 royalty payment, VR, per bundle to publishers plus other variable costs of VO = $9.00. The royalty

### Creating a Budget for a Company

Scenario: Four Flags is a retail department store. The following cost-volume relationships were used in developing a flexible budget for the company for the current year: Yearly Fixed Expenses Variable Expenses per Sales Dollar

### Revenue and Cost Calculations

A manufacturer of small chain saws has determined: R(x)=xp(x)=x(200-x/30)=200x-x^2/30 C(x)=7200+60x Where x is the number of saws that can be sold at price $p per saw and C(x) is the total cost (in dollars) of producing x saws. a. Find the marginal cost b. Find the marginal revenue c. What is the minimum number of saws s

### Preparing Budgets

Safe and Bright Inc produces outside doors for installation on homes. The following information was gathered to prepare budgets for the upcoming year beginning Jan 1: Sales force in units...........................................................................5,500 doors Finished goods inventory Jan 1........................

### Understanding Theoretical Stock Prices

Find an estimate of the risk-free rate of interest (krf). For the value, go to Bloomberg.com: Market Data and use the "U.S. 10-year Treasury" bond rate (middle column) as the risk-free rate. You also need a value for the market risk premium. Use an assumed market risk premium of 9.00%. Download the XYZ Stock Information which i

### Statistical Probability of a Deck of Cards

1) Consider a regular deck of cards where the cards ace, jack, queen, and king are numbered 1, 11, 12, and 13 respectively. Consider the experiment of drawing two cards randomly from this deck without replacement. a. Describe the outcomes of this experiment. List the elements of the sample space. b. What is the probability o

### Accounting Terms for Cost

For each statement indicate the accounting term or terms described: A. Examination of differences between costs to be incurred and revenue to be earned under different courses of action. B. A cost incurred in the past that cannot be changed as a result of future actions. C. Costs and Revenue that are expected to vary depend

### Statistics and Data Analysis: define data/information, population/sample, skewness, proportion. List Excel charts.

Please assist by providing brief answers to the following questions: 1. Explain the difference between data and information. 2. What is the difference between a population and a sample? 3. List the different types of charts available in Excel, and explain characteristics of data sets that make each chart most appropriate to