Business math is the study of mathematics required by the field of business. Business professionals will work with taxes, gross earnings, product prices, and currency exchange; they will be offered loans, lines of credit, mortgages, leases, savings bonds, and other financial tools. This textbook covers all of these topics and how these financial tools can maximize their earnings and minimize their costs. It discusses how to execute smart monetary decisions both personally and for their business.
- This chapter covers universal business mathematics you will use whether your chosen business profession is marketing, accounting, production, human resources, economics, finance, or something else altogether. To be a successful manager you need to understand percent changes, averages, ratios, proportions, and prorating.
- This chapter introduces the global model of the relationship between costs and revenues. It shows the overall cost structure of a business and introduces models for developing total costs and total revenues. It explains how you calculate net income and contribution margins. Armed with all of this knowledge, you can then answer the break-even question: How much does the business need to sell to cover its costs?