Business Mathematics Examples

Here are a few examples of how business mathematics is used in real life:

Financial Decision Making

Company’s business mathematics mainly focuses on decision-making based on financial issues. As an example, a company is likely to be faced with a decision of whether to expand its operations by opening a new factory or hold back for another year. The choice is mainly based on the funds that the company made this year and the expected profit for the next year on its financial projections. Business mathematics can provide information on how the company is going to assess its finances and decide about the future performance and operation of the company.

Pricing Optimization

One aspect of business mathematics is that it can facilitate the determination of the best price for a product or service. For instance, if a furniture store presents its products, such as sofa beds, to gain sales, a possible strategy is to provide a discount. With the figures of the expected monthly sales and profits, the store’s accountant can determine how much benefit the store will gain if a discount is given to the customers. By processing the data, the store’s administrator can conclude if the discount will make the store gain more profit or not.

Business mathematics is a fundamental concept in business and economic affairs, where mathematical methods are used to solve business-related questions. It involves various mathematical concepts like fractions, ratios, equations, and finance. The skill of implementing business mathematics is crucial for economic decisions in the areas of accounting, finance, marketing, and operations. With the help of mathematical tools, companies can manage finances, find raw materials, and perform routine tasks smoothly.

Business math mastery enables a person to meet the requirements of the business world and arrive at the required conclusions based on available data.