Copyright © 2008 Pearson Education Canada 1-1 Chapter 1 Review of Arithmetic Contemporary Business Mathematics with Canadian Applications Eighth Edition S. A. Hummelbrunner/K. Suzanne Coombs PowerPoint: D. Johnston

Copyright © 2008 Pearson Education Canada 1-2 Objectives After completing chapter one, the student will be able to: Use order of operations. Determine equivalent fractions. Convert fractions to decimals. Convert percents to common fractions and decimals. (continued)

Copyright © 2008 Pearson Education Canada 1-3 Objectives (continued) Change decimals and fractions to percents. Compute arithmetic and weighted averages. Calculate gross earnings. Solve problems involving GST, sales taxes, and property taxes.

Copyright © 2008 Pearson Education Canada 1-4 Basic Order of Operations

Copyright © 2008 Pearson Education Canada 1-5 BEDMAS A rule for basic order of operations B Brackets E Exponents D Division M Multiplication A Addition S Subtraction

Copyright © 2008 Pearson Education Canada 1-6 Examples Using BEDMAS

Copyright © 2008 Pearson Education Canada 1-7 Common Fractions

Copyright © 2008 Pearson Education Canada 1-8 Equivalent Fractions Change terms without changing value

Copyright © 2008 Pearson Education Canada 1-9 Equivalent Fractions in Lower Terms

Copyright © 2008 Pearson Education Canada 1-10 Convert Common Fraction to Decimal Form Divide the numerator by the denominator 12/5 = 2.4 1/8 = /6 = ….

Copyright © 2008 Pearson Education Canada 1-11 Convert a Mixed Number to Decimal Form A mixed number consists of a whole number and fraction 5 1/8 = /3 = … 8 3/4 = 8.75

Copyright © 2008 Pearson Education Canada 1-12 Rounding

Copyright © 2008 Pearson Education Canada 1-13 Complex Fractions Fractions may appear in the numerator or denominator or both.

Copyright © 2008 Pearson Education Canada 1-14 Using a Calculator to Evaluate a Complex Fraction

Copyright © 2008 Pearson Education Canada 1-15 Using the Calculator Function 1/x

Copyright © 2008 Pearson Education Canada 1-16 Percent Means Hundredths

Copyright © 2008 Pearson Education Canada 1-17 Changing Percents to Decimals

Copyright © 2008 Pearson Education Canada 1-18 Changing Decimals to Percents

Copyright © 2008 Pearson Education Canada 1-19 Changing Fractions to Percents

Copyright © 2008 Pearson Education Canada 1-20 Arithmetic Averages

Copyright © 2008 Pearson Education Canada 1-21 Arithmetic Averages (continued)

Copyright © 2008 Pearson Education Canada 1-22 Weighted Average Use a weighting factor to indicate the number of items in a group or the relative importance of data items. (continued)

Copyright © 2008 Pearson Education Canada 1-23 Weighted Average Grade A=4, B= 3, C=2, D=1

Copyright © 2008 Pearson Education Canada 1-24 Commissions Straight - Percent on net sales for a given time period Graduated - Increase in percent paid for higher sales levels for a given time period Salary Plus Commission - Guarantees minimum income for a given time period

Copyright © 2008 Pearson Education Canada 1-25 Straight Commission

Copyright © 2008 Pearson Education Canada 1-26 Graduated Commission

Copyright © 2008 Pearson Education Canada 1-27 Wages Compensation paid to hourly rated employees Gross Earnings = Gross Pay for regular workweek + Overtime Pay

Copyright © 2008 Pearson Education Canada 1-28 Calculating Gross Pay Regular workweek - 40 hours Overtime hourly rate x regular hourly rate Example

Copyright © 2008 Pearson Education Canada 1-29 Calculating Gross Earnings

Copyright © 2008 Pearson Education Canada 1-30 Overtime Premium

Copyright © 2008 Pearson Education Canada 1-31 Goods and Services Tax The Goods and Services Tax (GST) is a federal tax charged on almost all goods and services. Purchase a VCR for $109. The GST = $109 x 7% = 109 x.07 = $7.63

Copyright © 2008 Pearson Education Canada 1-32 Provincial Sales Tax Provinces levy a sales tax as well (PST). Ontario has an 8% sales tax. Purchase a VCR for $109 in Ontario. GST = $109 x.06 = $6.54 PST = $109 x.08 = $8.72 Total Sales Tax = GST + PST = $15.26.

Copyright © 2008 Pearson Education Canada 1-33 Property Tax Municipal tax charged on the assessed value of real estate. Based on a mill rate. Mill rate is the amount of tax levied per $1000 of assessed value of property. Property tax = Mill rate x.001 x Assessed Value of Property

Copyright © 2008 Pearson Education Canada 1-34 Calculating Property Tax

Copyright © 2008 Pearson Education Canada 1-35 Summary Common business applications such as payroll, commissions, and taxes involve the use of basic arithmetical operations, fractions, percents, and decimals. Averages are useful in analyzing data.