Explore BrainMass

Explore BrainMass

    business and the mathematical formula

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    One challenge we face on a daily basis in business is calculating decision-making information when we only know part of the information. We may need to know how much we need to determine how changes in our sales will affect our bottom line. If we know our Fixed Costs (FC), our Variable Costs per unit (VCu), our Price per unit (P), and the number of Units (U) sold, then we can use a mathematical equation to determine our Net Income (NI). In this case the formula is:

    NI = [U * (P-VCu)] - FC

    Find another problem we may need to solve in business and the mathematical formula that represents the solution that a classmate has not already used.

    What is the formula and what are the variables?

    Why do we need to use this shorthand so much in business?

    © BrainMass Inc. brainmass.com March 4, 2021, 11:08 pm ad1c9bdddf

    Solution Preview

    In business another very much used formula is on compounding interest on the principle invested for a period of time and number of times compounding interest accrued. Let us see some examples of calculating total compounded amount, as following: (start from simple solution to complex cases)

    Example1: If a person invests $P for 1 year with compounding rate of interest of r per year, ...

    Solution Summary

    Business and the mathematical formulas are applied clearly.