{"id":3,"date":"2020-04-17T14:26:24","date_gmt":"2020-04-17T18:26:24","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/2020\/04\/17\/main-body\/"},"modified":"2021-06-25T19:24:10","modified_gmt":"2021-06-25T23:24:10","slug":"main-body","status":"publish","type":"part","link":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/part\/main-body\/","title":{"raw":"Chapter 1: Business Applications of Basic Mathematics","rendered":"Chapter 1: Business Applications of Basic Mathematics"},"content":{"raw":"The purpose of a business is to make a profit. To find the profit a company makes in a particular period, say in a given month, you must start with all the money that comes into the company as a result of its operations. Then from that money, which is called the revenue, subtract all the expenses paid to earn it.\r\n\r\nThus you have\r\n

Revenue <\/em>\r\n- Expenses<\/span> <\/em>\r\n= Profit<\/em><\/p>\r\nThe profit is found on the famous \"bottom line.\" In accounting it is usually called the net income.<\/em>\r\n\r\n \r\n

Example 1.0<\/h2>\r\nSuppose that a company's revenue is earned entirely from sales and that it had expenses of $24,000 in a period during which it had sales of $32,000.\r\n\r\nThen,\r\n\r\n\r\n\r\n\r\n\r\n
\u00a0<\/strong><\/td>\r\nRevenue<\/strong><\/td>\r\n$32,000<\/strong><\/td>\r\n<\/tr>\r\n
-<\/strong><\/td>\r\nExpenses<\/strong><\/td>\r\n$24,000<\/strong><\/td>\r\n<\/tr>\r\n
=<\/strong><\/td>\r\nProfit<\/strong><\/td>\r\n$8,000<\/strong><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n\r\n\r\n\r\n\r\n\r\n
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 REVENUE: $32,000<\/strong><\/td>\r\n<\/tr>\r\n
Expenses<\/strong><\/td>\r\nProfit<\/strong><\/td>\r\n<\/tr>\r\n
$24,000<\/td>\r\n$8,000<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nWhen you study accounting, you will find that it takes considerable effort to find the correct values for the expenses that apply to the revenues for a period.","rendered":"

The purpose of a business is to make a profit. To find the profit a company makes in a particular period, say in a given month, you must start with all the money that comes into the company as a result of its operations. Then from that money, which is called the revenue, subtract all the expenses paid to earn it.<\/p>\n

Thus you have<\/p>\n

Revenue <\/em>
\n– Expenses<\/span> <\/em>
\n= Profit<\/em><\/p>\n

The profit is found on the famous “bottom line.” In accounting it is usually called the net income.<\/em><\/p>\n

 <\/p>\n

Example 1.0<\/h2>\n

Suppose that a company’s revenue is earned entirely from sales and that it had expenses of $24,000 in a period during which it had sales of $32,000.<\/p>\n

Then,<\/p>\n\n\n\n\n\n
\u00a0<\/strong><\/td>\nRevenue<\/strong><\/td>\n$32,000<\/strong><\/td>\n<\/tr>\n
–<\/strong><\/td>\nExpenses<\/strong><\/td>\n$24,000<\/strong><\/td>\n<\/tr>\n
=<\/strong><\/td>\nProfit<\/strong><\/td>\n$8,000<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 REVENUE: $32,000<\/strong><\/td>\n<\/tr>\n
Expenses<\/strong><\/td>\nProfit<\/strong><\/td>\n<\/tr>\n
$24,000<\/td>\n$8,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

When you study accounting, you will find that it takes considerable effort to find the correct values for the expenses that apply to the revenues for a period.<\/p>\n","protected":false},"parent":0,"menu_order":1,"template":"","meta":{"pb_part_invisible":false,"pb_part_invisible_string":""},"contributor":[],"license":[],"class_list":["post-3","part","type-part","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/parts\/3","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/parts"}],"about":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/types\/part"}],"version-history":[{"count":23,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/parts\/3\/revisions"}],"predecessor-version":[{"id":3990,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/parts\/3\/revisions\/3990"}],"wp:attachment":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/media?parent=3"}],"wp:term":[{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/contributor?post=3"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/license?post=3"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}