BUSINESS MATH 2

RATIO AND PROPORTION

Why do we need MATH IN
BUSINESSES?
MONEY
 business math teaches you
WHY? monetary concepts and
how to make smart
decisions with your money.
why do I want to learn about business math?”
The answer is simply this: money.

Our world revolves around money.

We all work to earn money.

We need money to purchase our necessities, such as homes, transportation, food, and utilities.

We also need money to enjoy the pleasures of life, including vacations, entertainment, and hobbies.

We need money to retire.

And businesses need money to survive and prosper.

 Fraction Operations Summary

we may need to use the LCM to help us add two fractions, and also the GCF
to simplify our result.
Percentage formula
Original formula:
Percentage (or portion) = Rate x Base

Base = Percentage / Rate

Rate = Percentage / Base

Percent change = [(value 2 – value 1)/ value 1] x 100

Example 11M this year 10M Last year = percent change is what?
[(11,000,000 – 10,000,000)/10,000,000] x 100 = 10 %

Read on your own:

https://www.cuemath.com/numbers/percent-to-fraction/
RATIO AND
PROPORTION
 RATIO AND PROPORTION
The concept of ratio and proportion is based on fractions.

Ratio and proportion are the key foundations for various other concepts in
Mathematics. Ratio and proportion have their applications in solving many
day-to-day problems, like when we compare heights, weights, distance or
time or while adding ingredients in cooking, and so on.
RATIO AND PROPORTION
• Compare and differentiate ratio and rate

• Write proportions illustrating real-life situations

• Identify the different kinds of proportion and give examples for each

• Solve problems involving direct, inverse, and partitive proportion

WHAT IS A RATIO?
THE INTRODUCTION
RATIO IS WHAT?

This chapter uses ratios to analyze basic business concepts such as profits, expenses and
revenues.

If only two quantities are involved, they are referred to as amount and base.

A ratio expresses the relative sizes of quantities. If only two quantities are involved, they
are referred to as amount and base.
Ratio?

•Ratios can be written in three different ways:

a to b
RATIO IS WHAT?
RATIO IS WHAT?

When we compare the relationship between two numbers dealing with a kind, then we use the ratio formula. It is denoted
as a separation between the number with a colon (:). Sometimes a division sign is also used to express ratios.

For example, we are making a cake, then the recipe sometimes says to mix flour with water in the ratio 2 part 1.
That means if you use 2 cups of flour then mix it with 1 cup of water. 2 cups of flour : 1 cup water

Both the numbers should be non-zero in order to make meaning out of the comparison. Some ratios are denoted in
percentages and decimals as well.
RATIO VS FRACTION

The ratio is used to express the relative size of two or more values .

Similarly, the fraction defines the parts of the whole.

The ratio can be expressed as a: b, or a/b.

For example, the ratio given is 12: 15.

It can also be written as 12/15.

RATIO VS FRACTION

A ratio of two numbers can be written as a fraction (or simplified as a decimal), but may
not represent the same thing a fraction does.

The denominator of a fraction ALWAYS represents the number of equal parts a whole is
divided into.

A ratio can compare numbers with the same or different units.

RATIO VS FRACTION

A ratio of two numbers can be written as a fraction (or simplified as a decimal), but may
not represent the same thing a fraction does.

The denominator of a fraction ALWAYS represents the number of equal parts a whole is
divided into.

A ratio can compare numbers with the same or different units.

RATIO IS WHAT?

Red fish to blue fish ratio -> 10/4 -> 10:4 -> simplify to 5:2
blue fish to red fish ratio -> 4/10 -> 4:10-> simplify to 2:5
How to simplify ratios?

Now I tell you I have 12 cats and 6 dogs. Can you simplify the ratio of cats and dogs to 2
to 1?

Divide both numerator and denominator by their Greatest Common Factor 6.

Final answer: 2 cats to 1 dog or 2:1 in short

How to simplify ratios?

Problem: A person’s arm is 80cm, he is 2m tall. Find the ratio of the length of his arm to
his total height

Steps:

To compare them, we need to convert both numbers into the same unit …either cm or m.

Let’s try cm first!

Final answer: length of his arm to height

2:5

Divide both numerator and denominator by their Greatest Common Factor 20.
To find the greatest common factor, first list the prime factors of each number
Step Two: Divide Left Side and Right Side by the Common Factor

The second step to simplify a ratio is to divide the ratio’s left and right sides by the greatest common factor. This will
reduce the ratio to the smallest possible form, keeping both parts of the ratio as whole numbers.
Another example of ratio
or example, let’s simplify the ratio 6:8.
Start by finding the greatest common factor.
Factors of 6: [1,2,3,6]
Factors of 8: [1,2,4,8]
The largest common number in each set is 2.
Divide each side of the ratio by the greatest common factor.

6÷2=3
8÷2=4
Thus, 3:4 is the simplified form of the ratio.
RATIO

If there are 2 oranges and 3 apples, the ratio of oranges to apples is 2:3, and the ratio of
oranges to the total number of pieces of fruit is 2:5.

These ratios can also be expressed in fraction form: there are 2/3 as many oranges as
apples, and 2/5 of the pieces of fruit are oranges.
RATIO

If orange juice concentrate is to be diluted with water in the ratio 1:4, then one part of
concentrate is mixed with four parts of water, giving five parts total; the amount of orange
juice concentrate is 1/4 the amount of water, while the amount of orange juice concentrate
is 1/5 of the total liquid.

In both ratios and fractions, it is important to be clear what is being compared to what, and
beginners often make mistakes for this reason
Example: A trades college teaches many trades, including carpentry,
electrical, and plumbing. There are currently 97 carpentry apprentices,
123 electrical apprentices, and 80 plumbing apprentices at the college.
College likes to keep statistics on apprentices, including what percentage of all the
apprentices each of the three trades holds. The question is, how do we go about this?

The first thing we should do is add up the total number of apprentices in each of the three
trades. 97 + 123 + 80 which is
A trades college teaches many trades, including carpentry, electrical, and plumbing. There are
currently 97 carpentry apprentices, 123 electrical apprentices, and 80 plumbing apprentices at the
college.
The first thing we should do is add up the total number of apprentices in each of the three trades.

97 + 123 + 80 = 300

What we can do now is put each of the apprentice totals into both a ratio and a fraction of the whole.
 A trades college teaches many trades, including carpentry, electrical, and plumbing. There are currently 97 carpentry
apprentices, 123 electrical apprentices, and 80 plumbing apprentices at the college.

We’ll start with the 97 carpentry apprentices. We have 97 apprentices out of a total of 300. Our goal here is to get this
fraction down to a point where the denominator is 100.

We are essentially reducing the fraction. Luckily for us, going from 300 down to 100 is quite easy. We just divide the denominator by 3, and then
also divide the numerator by 3.
A trades college teaches many trades, including carpentry, electrical, and plumbing. There are currently 97 carpentry
apprentices, 123 electrical apprentices, and 80 plumbing apprentices at the college.

We could now write this number as a ratio.

32.33 : 100
What we end up with is the fact that 32.33% of the trades apprentices are carpentry apprentices. Once
we find out the number of carpentry students per 100 students, we automatically have our percentage. In just
a bit, we’ll talk about working with numbers that don’t give us a nice even number of 100 and simply
translate to percentage in one step. But for now, let’s continue on with our apprentices.
A trades college teaches many trades, including carpentry, electrical, and plumbing. There are currently 97 carpentry
apprentices, 123 electrical apprentices, and 80 plumbing apprentices at the college.

Find the percentage of electrical students.

Step 1: Put the numbers into an equation that we can work with. In this case, put the numbers into a fraction.

123/300
Step 2: Turn the fraction into one with a denominator of 100.

As a ratio, we would have:

41:100 And finally, as a percentage, we would get 41%

A trades college teaches many trades, including carpentry, electrical, and plumbing. There are currently 97 carpentry
apprentices, 123 electrical apprentices, and 80 plumbing apprentices at the college.

Now calculate the percentage of plumbing apprentices.

A trades college teaches many trades, including carpentry, electrical, and plumbing. There are currently 97 carpentry
apprentices, 123 electrical apprentices, and 80 plumbing apprentices at the college.

Now calculate the percentage of plumbing apprentices. 26.70% ARE PLUMBING STUDENTS.
Sam made Php 1800 by working 45 hours. If she works for 36 hours, how much does she will earn?
PROPORTION

Proportions are used to solve problems involving ratios.

PROPORTION

Proportions are used to solve

problems involving ratios.

Problem: Since 100 cm is

equivalent to 1 m, how
many metres are equivalent
to 57.3 cm?
PROPORTION
Proportion is an equation that defines that the two given ratios are equivalent to each other.

used to express the relation of two ratios ; states the equality of the two fractions or the ratios. In proportion, if
two sets of given numbers are increasing or decreasing in the same ratio, then the ratios are said to be
directly proportional to each other.

For example, the time taken by train to cover 100km per hour is equal to the time taken by it to cover the
distance of 500km for 5 hours. Such as 100km/hr = 500km/5hrs.

Ratio and proportions are said to be faces of the same coin. When two ratios are equal in value, then they are
said to be in proportion. In simple words, it compares two ratios. Proportions are denoted by the symbol
double colon ‘::’ or ‘=’.
CLASSIFICATION OF PROPORTIONS
Direct Proportion
The direct proportion describes the relationship between two quantities, in
which the increases in one quantity, there is an increase in the other quantity
also. Similarly, if one quantity decreases, the other quantity also decreases.
Hence, if “a” and “b” are two quantities, then the direction proportion is written
as a∝b.

Grade score to performance on exam

Weight to Clothing Size

more work, more earning

CLASSIFICATION OF PROPORTIONS

Inverse Proportion
The inverse proportion describes the relationship between two quantities in
which an increase in one quantity leads to a decrease in the other quantity.
Similarly, if there is a decrease in one quantity, there is an increase in the
other quantity. Therefore, the inverse proportion of two quantities, say “a” and
“b” is represented by a∝(1/b).

type of proportionality relationship. If two quantities are inversely proportional

then as one quantity increases, the other decreases. An example of inverse
proportion would be the hours of work required to build a wall.
For example, as the speed of a vehicle is increased, it will cover a fixed distance in less
time.

More things you buy in bulk, cheaper the price as a whole

Different Modes of Travelling and the Time. (Cars vs time, or commute vs time)

Number of People and the Time that is taken to complete a Particular Task.

Speed of the Vehicle and Time Covered.

Number of Vehicles on the Road and Free Space on Road.

Example
You will find out that for each row, the
product of x and y are the same. That means if
there are 16 workers, they will complete the
work in 3 days. So, here x × y = 16 × 3 = 48.
Now, we decrease the number of workers, it is
obvious that the less number of workers will
do the same work in more time. But we see
the product of x and y here, it is 12 × 4 = 48.
Again, for 8 workers in 6 days, the product is
48. And same for 4 workers in 12 days. So,
the product of two quantities in inverse
proportion is always equal.
Proportion Formula
Types of proportion
Types of proportion
Direct Proportion
Direct proportion is the relation between two quantities where the ratio of the
two is equal to a constant value.
Example:
If two pencils cost $1.50, how many pencils can you buy with $9.00?

Solution:
The number of pencils is directly proportional to the cost.
pencils.
Example:
If two pencils cost $1.50, how many pencils can you buy with $9.00?

Solution:
The number of pencils is directly proportional to the cost.
pencils.
 x

40x=160 -> x = 4 so We need 4 jeepneys to transport 80 people.

Proportion Example # 1
Proportion Example #2
Ratio examples: is 2:1 same as 1:2?

Let's take the example of 20:16 which is basically 5:4 i.e., 1.25 and 16/20 which is 4:5
equals 0.8 which is not same. Hence we cannot write 5:4 as 4:5.

A ratio is basically a fraction, or two numbers expressed as a quotient, such as 5/7 or

170/385, etc. But a ratio is a special kind of fraction, which is used to compare 2 related
quantities.
Sam made Php 1800 by working 45 hours. If she works for 36 hours, how much does she will earn?

Let x = earnings

1800 : 45 = x : 36

45x = 1800(36)

X = 64000 / 45

X = Php 1440

She will earn Php 1440 for working 36 hours.

Inverse Proportion
Inverse Proportion
1. If 35 men can reap a field in 8 days; in how many days can 20 men reap the same field?
1. If 35 men can reap a field in 8 days; in how many days can 20 men reap the same field?

Solution:

35 men can reap the field in 8 days

1 man can reap the field in (35 × 8) days [less men, more days]

20 men can reap the field in (35 × 8)/20 days [more men, more days]

= 14 days

Hence, 20 men can reap the field in 14 days

2. A fort had provisions for 300 men for 90 days. After 20 days, 50 men left the fort. How long would the food last at the
same rate?
2. A fort had provisions for 300 men for 90 days. After 20 days, 50 men left the fort. How long would the food last at the
same rate?

Solution:

Remaining number of men = (300 - 50) = 250.

Remaining number of days = (90 - 20) days = 70 days.

300 men had provisions for 70 days

1 man had provisions for (300 × 70) days [less men, more days]

250 men had provisions for (300 × 70)/250 days

[more men, more days]

= 84 days.

Hence, the remaining food will last for 84 days.

DIFFERENCE WITH RATIO AND PROPORTION
Ratio Analysis? Ratio analysis is a quantitative method of gaining insight into a
company's liquidity, operational efficiency, and profitability by studying its financial
statements such as the balance sheet and income statement. Ratio analysis is a
cornerstone of fundamental equity analysis.
SAMPLE OF RATIO ANALYSIS IN ACCOUNTING AND FINANCE

Current Ratio = Current Assets / Current Liabilities

Quick Ratio = Liquid Assets / Current Liabilities

Gross Profit Ratio = Gross Profit / Net Sales × 100

Net Profit Ratio = Net Profit / Net Sales × 100

Inventory Ratio = Net Sales / Inventory

Working Capital Turnover Ratio = Net Sales / Working Capital

Overall Profitability Ratio = Net Profit / Total Assets

1. The ratio of monthly income to the savings in a family is 5 : 4 If the savings be $9000,
find the income and the expenses.

2. What should be added to the ratio 5 : 11, so that the ratio becomes 3 : 4?

3. Two numbers are in the ratio 7 : 5. If 2 is subtracted from each of them, the ratio
becomes 3 : 2. Find the numbers.

4. Two numbers are in the ratio 3 : 7. If their sum is 710, find the numbers.
5. A sum of money is divided among Ron and Andy in the ratio 4 : 7. If Andy’s share is $616, find the total
money.
1.Simplify the ratio 42 : 63.
2.Ron gets 20% more marks than John. Find the ratio of their marks.
3.Divide Php 490 in the ratio 4 : 3.
4.A man distributes his savings of $4000 among his three sons, in the ratio 4 : 3 : 3. Find the amount received by his first son.
5.If the ratio a : b = 2 : 3, and b : c = 3 : 4. Find the ration a : c.
6.There are two numbers. Five times the first, and four times the second are equal. Find the ratio of the two numbers.
(a) 5 : 4 (b) 4 : 5
7.Find the fourth proportion of 4, 9 & 12 (a) 18 (b) 36 (c) 72 (d) 27 (e) 24
8.Find the third proportion of 16 and 36 (a) 81 (b) 144 (c) 196 (d) 64 (e 100
9.The ratio of two positive numbers is 4 : 7.. If the difference of the numbers is 15, find the larger number. (a) 25 (b) 30 (c) 20 (d) 35
10. Find the duplicate ratio of 4 : 5.
13. The total number of male and female employees in a company are 60. Which of the following represent the ratio of male and female employees in
the company.? (a) 1 : 4 (b) 4 : 3 (c) 1 : 6 (d) 5 : 3
14. The LCM of two numbers is 160, and their ratio is 4 : 5. Find the largest of the two numbers. (a)40 (b) 45 (c) 20 (d) 15 15. If a/2 = b/3 = c/4. Find
the ratio a : b : c. 16. x/4 = y/3. Find the ratio (x + 4) : ( y + 3).
17. In a class 20% of the boys is equal to 1/4th of the girls. What is the ratio of the boys and girls in the class.
18. Find the compound ratio of 2 : 3 and 5 : 4.
19. The sum of five times the first number and two times the second number is equal to twice the difference of thrice of the first number and twice the
second. Find the ratio of the two numbers. (a) 1 : 6 (b) 6 : 1 (c) 2 : 1 (d) 3 : 4
20. If 60 men do a piece of work in 27 days, then in how many days can 18 men do the same work? (a) 120 days (b) 90 days (c) 100 days (d) 60 days
In a certain business, A and B received Profit in a certain ratio; B and C received profits in the same ratio. If A gets ₹ 1,600 and C get
s ₹ 2,500, then how much does B get?
Solution:

Suppose that the amount received by B = x

So the ratio between A and B = 1,600 : x

& the ratio between B and C = x : 2,500

As per question, A:B = B:C

1,600 : x = x : 2,500

x*x = 1600*2500

x² = (40*40)*(50*50)

x = 40*50

x = ₹2,000 (Final Answer: B get 2k rupees