Grade 11 Modules 2021-2022 ABM

Business Math (Part 1)

Commision is a fee paid to person who makes a sale. The commision is usually a percent of the selling price. The percent is called the commision rate.

Straight Commision is a type of commision where a person is paid a percent of his/her sales only.

Salary plus Commision is a type of commison where a person gets paid a salary and a percentage of his/her sales.

Graduated Commision is a type of commision where the percentage changes based on how much someone sells. Most of the commision encourage their agents to sell more goods.

Commision on Installment Basis all computations above are on cash sale. If the sales are on installment basis. They are giving commision based on the payment made by the buyers.

Down payment, Gross balance, and Current Increased Balance is a type of payment made in cash during the onset of the purchase of an expensive good or service. The payment represents a percentage of the full purchase price.

Salary is a fixed amount usually associated with employee compensation usually received on a monthly or semi-monthly basis, but it may be quited in an annual sum.

1 year = 12 months (24 semi-monthly)
1 year = 52 weeks (26 bi-weekly)
1 year = 2 semi-monly (after 6 months)

Semi-monthly means given twice a month and bi-weekly means given every two weeks.

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Quiz 1

1. A university assistant professor in a state university gets a monthly
salary of 50,000. How much will he receive if the salary is given semi-monthly?

Semi-Salary = Monthly Salary ÷ 2
= 50,000 ÷ 2
= 25,000
= Therefore, asistant professor will received 25,000 semi-monthly salary.

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Wage = (hourly rate) (no. of hours worked)

Wage = (daily rate) (no. of days worked)

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Quiz 2

2. Mang Pedro, a minimun wage earner in metro manila is paid 450.50 for an 8-hour workday. What is his hourly wage?

Hourly wage = wage salary ÷ no. of hours worked

= 450.50 ÷ 8
= 56.3125 or 56.31

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Income is the total amount that people earn in exchange of the goods, employment, businesses, investments, and professional services that they have rendered.

1. Active Income is when you do the work and are paid for that work. If you do nothing, you will no longer be paid.

2. Passive Income is when the payment is not directly tied to active work. It usually front-loaded with active work and gets paid with small amount, while the bulk of income comes later.

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Sources of Income

a. Commision Income payment for the commision on sales.

b. Rental Income payment from rentals of properties and real estates.

c. Dividends from investments and partnerships.