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Ratio and Proportion

Ratios, proportions, and different types of proportions are used in business to share profits, losses, and other distributions. Ratios show the relationship between two quantities, while proportions demonstrate equality between ratios. There are three types of proportions: direct proportion where variables increase or decrease together, inverse proportion where one variable increases as the other decreases, and partitive proportion which divides a whole into parts based on a given ratio. Examples are provided to demonstrate calculating ratios, proportions, and applying the different proportion types to business contexts involving profit sharing, capital contributions, and other distributions.

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180 views28 pages

Ratio and Proportion

Ratios, proportions, and different types of proportions are used in business to share profits, losses, and other distributions. Ratios show the relationship between two quantities, while proportions demonstrate equality between ratios. There are three types of proportions: direct proportion where variables increase or decrease together, inverse proportion where one variable increases as the other decreases, and partitive proportion which divides a whole into parts based on a given ratio. Examples are provided to demonstrate calculating ratios, proportions, and applying the different proportion types to business contexts involving profit sharing, capital contributions, and other distributions.

Uploaded by

Stacey Villanueva
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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RATIO AND PROPORTION

1. Define ratio and explain how it is used in business


2. Define proportion and discuss how it is used in business; and
3. Differentiate direct proportion, indirect/inverse proportion, and partitive
proportion, and apply them in business.
Ratios is generally used in business in cases of sharing of profits and
losses.
Assume that Xander, Yoly, and Zeny are partners sharing profits and losses in the
ratio of 1:2:3, respectively. If the partnership incurred a net loss of 10,000.00
pesos for the month, the share of the partners in the loss would be:

Xander = 1 x 10,000.00 = 1,667.00


6

Yoly = 2 x 10,000.00 = 3,333.00


6

Zeny = 3 x 10,000.00 = 5,000.00


6
Ratios is the relation between two numbers or two magnitudes of the same
kind.

The expression 1:2 (read as “one is to two”), ½ , 1 ÷ 2, indicate ratios. We


can compare or showing the relationship between 1 and 2.

Example: there are twice as many married employees as single employees,


we mean that the ratio of married to single employees is 2:1, where 2
represents married employees and 1 represent single employees.
There are two ways of finding the ratio:

1. Division
Example: If there are 20 boys and 30 girls, we find the ratio by dividing 20
boys by 30 girls and reduce it to lowest term that is,
20/30 = 2/3 = 2:3
We, then, say that the ratio of boys to girls is 2:3. On the other hand, the ratio
of girls to boys is 30/20 = 3/2 = 3:2. We usually express ratios in terms of whole
numbers.
2. Comparing numerators of fractions with the same denominator

If we have a total of 100 T-shirts of 30 small-sized, 50 medium-sized, and 20


large-sized T-shirt, we have

30 small
100

50 medium
100

20 large
100
Examples:

1. Liezel, Maricel, and Snooky are partners. Their capital balances are P 10,000, P
20,000, and P30,000, respectively. What is their capital ratio?

Liezel: Maricel: Snooky = 1:2:3


2. A, B, C, and D divided a pie in such a way that A got 1/5; B got 3/10;
C got 1/10; D got 2/5. Find the ratio in which the four divided the pie.

A= 1 = 2
5 10
Therefore, the ratio in which the four divided the
B=3 pie would be:
10
A:B:C:D = 2:3:1:4
C=1
10 We use the numerators of similar fraction to get
the ratio.
D=2 = 4
5 10
3. Tony has three times as many red marbles as his black marbles. If he has a total of
24 marbles, how many are red and how many are black?

Red: Black = 3:1; therefore,

Red = 3 x 24 = 18 (3 and 1 are the numerators and 3+1, which is 4,


4 is the denominator)

Black = 1 x 24 = 6
4

Total = 18+6
= 24
Proportion refers to the equality between ratios. The following are
proportions:

(a) 1:2 = 8:16

means

extremes

Our rule concerning proportions is that “ the product of the mean equals
the product of the extremes.”

In (a) above, 2x8 = 1x16


16 = 16
(b) 9 = 81
3 27

Applying the rule to (b) above, we cross-multiply the means and the extremes.
9 x 27 = 3 x 81
243 243

Cross multiplication is the same as multiplying the means and multiplying the extremes.
Expressing our fraction above as proportion, we have:
9:3 = 81:27

Where 3 and 81 are means and 9 and 27 our extremes. So, we multiply the means 3 and
81 to obtain 243, and the extremes 9 and 27 to obtain 243.
There are three types of Proportion
1. Direct Proportion – a number is directly proportionate to another when
as one value increases, so does the other.

Two values x and y are directly proportional to each other when x and y
will either increase or decrease, such that when one increases, the other increases or
when one decreases, the other decrease as well.

Example 1: If 3 notebooks cost P15.00, how many notebooks can you buy
with P60.00?
The number of notebook is directly proportional to the cost.

_3___ = _X_
P 15.00 P 60.00

X = (3)(60) = 180_ = 12 notebooks


15 15
Example 2
2. Inverse/ Indirect Proportion – a number is indirectly proportionate to another
when as one value increases, the other decreases.

Two values x and y are inversely proportional to each other such that if x increase,
y decreases or x decrease, y increases.

Example: If it takes 3 people to build a house in 2 month, how it will take if you have 6
people to do the job?
Solution

3:2 = 6(y)
6 = 6y
_6_ = 6y
6 6
y=1
3. Partitive Proportion – involves identifying parts of a whole based on a given ratio of
these parts.

Partitive proportion, we are talking about a whole divided into parts.

Example 1

A partnership agreement stipulates an agreed capitalization of P100,000.00 and


partners are divided the said capitalization in the ratio of 1:2:2, we are talking about
partitive proportion, and we get the corresponding parts as follows assuming the partners
are X, Y, and Z, respectively, contributing the capital:
X = 1 x 100,000.00 = P 20,000.00
5

Y = 2 x 100,000.00 = P 40,000.00
5

Z = 2 x 100,000.00 = P 40,000.00
5

= P 100,000.00
Example 2
Janine and john share profits of partnership in the ratio 2:3. if Janine’s share in
the profit last year was P30,000.00, how much was John’s share in the profit of the
business?
Given: Janine: John = 2:3
30,000: x = 2:3
Solution

2x = (30,000.00)3

x = 90,000.00
2
x = P 45,000.00
Assignment
200,000

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