SHS

Business Mathematics
Week 5b: Module 5
Business Mathematics
Grade 11 Week 5b: Module 5
First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.

Development Team of the Module

Author: Yves Jill M. Yukee

Editor: SDO La Union, Learning Resource Quality Assurance Team
Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

ATTY. Donato D. Balderas, Jr.

Schools Division Superintendent
Vivian Luz S. Pagatpatan, Ph.D
Assistant Schools Division Superintendent
German E. Flora, Ph.D, CID Chief
Virgilio C. Boado, Ph.D, EPS in Charge of LRMS
Erlinda M. Dela Peña, Ed.D, EPS in Charge of Mathematics
Michael Jason D. Morales, PDO II
Claire P. Toluyen, Librarian II
Business Mathematics
Week 5b: Module 5
 Target

One of the best aspects about starting and operating a buy-and-sell venture is that
everyone is qualified. Buying and selling knows no boundaries-anyone with a need or
desire to earn extra money, work from home or to start and own a business can buy
and sell, regardless of age, experience, education and financial resources. This is
perhaps what makes buying and selling the ultimate self-employment option for the
vast majority of people; it's cheap, easy, quick and proven to work and generate huge
profits (Stephenson,2005).

Profit is a reward for risk-taken in the business. The main goal of a business is
making profit.

This module will provide you with information and activities that will help you
understand how to obtain mark-up, mar-on and mark-down given the price of the
product. This will enable you to keep track of the profit you can gain in every
business transaction you make.

After going through this module, you are expected to:

1. Obtain Mark-on, Mark down and Mark-up given price of a product.

Before going on, check how much you know about the topic.
Answer the pretest on the next page in a separate sheet of paper.

1
 LESSON 2
MARK-UP, MARK-ON and
MARK-DOWN

2
Pre-Test

Directions: Read carefully each item. Use a separate sheet for your answers. Write
only the letter of the best answer for each item.
For items 1-5
Memorabilia items were purchased by Jessa at PhP15 each. The operating cost
is set at 25% and she would like to have a 20% profit on the cost of each item.
1. How much is the operating cost based from the cost of each item?
A. PhP2.75 B. PhP3.75 C. PhP3 D. PhP6.75
2. What is the amount of profit based from the cost of each item?
A. PhP6.75 B. PhP3.75 C. PhP3 D. PhP2.75
3. What is the mark-up price for each memorabilia?
A. PhP2.75 B. PhP3.75 C. PhP3 D. PhP6.75
4. What is the selling price of each memorabilia?
A. PhP18.75 B. PhP18 C. PhP16.75 D. PhP21.75
5. Jessa noticed the increasing demand of the memorabilia and decided to have
20% mark-on. How much is the selling price after the mark-on?
A. PhP24.75 B. PhP24 C. PhP20.75 D. PhP26.10
For items 6-7
A blouse regularly priced at Php600 was sold for only PhP450.
6. What was the amount of mark-down?
A. PhP1050 B.PhP600 C. PhP450 D.PhP150
7. What was the rate of mark-down?
A. 25% B. 33.33% C. 14.29% D. 42.86%
For items 8-10
A jacket costs PhP950 and is sold at PhP1,225 with operating expense set at
20% of the cost.
8. How much is the operating expenses for this item?
A. PhP85 B. PhP190 C. PhP245 D. PhP275
9. How much is the net profit for this item?
A. PhP275 B. PhP245 C. PhP190 D. PhP85
10.What is the amount of mark-up for this item?
A. PhP85 B. PhP190 C. PhP245 D. PhP275

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 Jumpstart

For you to understand the lesson well, do the following activities.

Good luck!

Activity 1: How Much?

Directions: Read the situation and answer the given questions that follow.

Linda is a student who does buy and sell on her spare time. She buys and sells
anything she believes her classmates or schoolmates would buy. If she bought a
perfume for PhP1,500 per 500mL bottle and she wanted a mark-up of 20% on cost.
1. How much will she sell for it?
2. If she wants a mark-on of 20% based on selling price of PhP1,900 how much is
the mark-on?
3. If she decides to have a mark-down of 15% based on selling price of PhP1,900,
how much is the mark-down?

4
 Discover

Let us continue to understand how Mark-on, mark-up and mark down are obtained. Remember the
important facts you learned previously.

MARK-UP
It is the amount added to the cost price to determine the selling price. It is also
defined as the difference between the selling price and the cost price and sometimes
refered to as GROSS PROFIT. .

To compute Mark-up: MARK UP = SELLING PRICE – COST PRICE

MU = S – C
Where MU = Mark-up
S = Selling Price
C = Cost Price

Illustrative Examples:
1. Jose buys a T-shirt with a cost of PhP175. If he sells the T-shirt at PhP245,
a. How much is the mark-up?
b. What is the rate of mark-up based on cost?

Given: Cost (C)= 175

Selling Price (S) = 245
Solution:
a. Solve for the amount of mark-up using the formula MU= S – C.
Then, MU = 245 – 175 by substitution
= 70
The mark-up is PhP70.

b. Solve for the rate of mark-up by dividing the mark-up by the cost
Then, MUc% = x 100%
t
Rate of mark-up = x 100% by substitution
= 40%

The T-shirt has a 40% mark-up based on cost.

2. Aling Maria would like to sell face masks purchased for PhP20 each. If the
operating cost is set at 25% of the cost and she would like to have a profit of
15% on the cost of each item, help aling Maria determine the selling price for
each mask.

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 Given: Cost (C) = 20
Rate of Expenses = 25% or 0.25
Rate of Profit = 15% or 0.15
Solution:
a. Represent the Operating Expenses (E) and Profit (P) as percentage of cost.
Remember that operating expense and profit are computed based on
cost so we have to multiply the given rate of expense and profit to the cost.
Then, E = 0.25 x C and
P = 0.15 x C
b. Solve for the amount of mark-up Using the formula MU = S – C
Since the selling price is not given but we know that S = C + E + P,
We substitute the value of S to MU = S - C
then we get MU = C + E + P – C
we now have a new formula MU = E + P

From MU = E + P
MU = (0.25 x 20 ) + (0.15 x 20) by substitution
=5+3
=8
The mark up price for each mask is P8.00.

c. Solve for the selling price using the formula

S=C+E+P but MU = E + P , then
S = C + MU then suctitute the value of C and MU
= 20 + 8
= 28
Aling Maria should sell each face mask at PhP28.

Alternative solution:
S=C+E+P but E = 25% of the cost or 0.25C
and P = 15 % of the cost or 0.15C
= C + 0.25C + 0.15C by substitution,
= 1.40C by addition of decimals
= 1.40 x 20 by substitition , C=20
= 28

MARK-ON
It is the difference between the Peak Selling Price and the Regular Selling Price.

To compute Mark – On:

MARK-ON = PEAK SELLING PRICE – REGULAR SELLING
PRICE
MO = PS – S
where MO = mark-on
PS = Peak Selling Price
S = Regular Selling Price

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Illustrative Examples:

1. The regular price of 500mL bottle of alcohol in a certain store is PhP65. Due
the pandemic, there is high demand for alcohol. The store owner then decided
to change the price tag to PhP92.50.
a. What is the amount of mark-on?
b. What is the rate of mark-on?

Given: Regular Selling Price (S) = 65

Paek Selling Price (PS)= 92.50
Solution:
a. Solve for the amount of mark-on using the formula MO = PS - S.
MO = 100 - 65 by substitution
= 35

b. Solve for the rate of mark-on based on selling price using the formula
t
MOS% = x 100%
th t
Rate of mark-up = x 100% by substitution
= 50%

The amount of mark-on is PhP32.50 which is equivalent to 50% mark-on.

2. Manang Biday observed that there is an undersupply of fish so the market

goers prefer to buy dressed chicken. She then decides to increase the price of
dressed chicken by 15% of the regular selling price per kilo. If the cost of
dressed chicken per kilo is PhP150 with a 20% mark-up, what is the peak
selling price?

Given: Cost (C)= 150

Rate of Mark-up (MUC%) = 15% or 0.15
Rate of Mark-on (MOS%) = 20% or 0.20
Solution:
a. Compute for the amount of mark-up which is based on cost. We then multiply
the rate of mark-up with the cost price.
MU = 0.20 x 150
= 30
b. Compute for the regular selling price by adding the mark up with the cost
SP = C + MU
= 150 + 30 by sustitution
= 180
c. Compute for the amount of mark-on by multiplying the rate of mark-on with the
selling price. MO = 0.15 x 180
MO = 27
d. Finally, compute for the peak selling price by adding the mark-on and selling
price. From MO = PS – S, it follows that
PS = S + MO
PS = 180 + 27 by sustitution
= 207

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 The peak selling price of the dressed chicken is PhP207.

MARK-DOWN
It is the difference between the Selling price and the Sale Price

To compute for Mark-down: MARK-DOWN = SELLING PRICE – SALE PRICE

MD = S – SP
where MD = Mark-down
S = Regular Selling Price
SP = Sale Price

Illustrative examples:
11.Miguel was able to buy a smart cellphone regularly priced at PhP9,990 for only
PhP7,492.50.
a. What is the amount of mark-down?
b. What is the rate of mark-down?

Given: Regular Selling Price (S) = 9990

Sale Price (SP) = 7492.50
Solution:
a. Solve for amount of mark-down using the formula MD = S –SP
MD = 9990 – 7492.50 by sustitution
= 2497.50
b. Solve for the rate of mark down. Note the rate of mark down is based on
t
selling price. Use the formula MDS% = x 100%

W XhW
MD = x 100% by sustitution
= 25%
The amount of mark-down is PhP2497.50 which is equivalent to 25% mark-
down based on selling price.

12.A stall owner paid PhP20,000 for a flat television. Expenses are 20% of the
selling price while the required profit was 17% of the selling price. During the
inventory sale, the TV was marked down by 25%.
a. What was the selling price?
b. What was the sale price?

Given: Cost ( C ) = 20,000

Rate of Expenses = 20% or 0.20
Rate of Profit = 17% or 0.17
Rate of Mark-down (MDS%) = 25% or 0.25
Solution:
a. Represent the expenses and profit as percentage of cost.
E = 20% of cost or 0.20C ,
and P = 17% of cost or 0.17C.
b. Compute for the selling price using the formula S = C + E + P.
S = C + 0.20C + 0.17C by sustitution
= 1.37C but C = 20,000
= 1.37 x 20000

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 = 27400
The regular selling price of the flat TV is PhP27,400.
c. Compute for the sale price considering that the rate of mark-down is 25% of
the regular selling price.
SP = S – MD but MD = is 25% of selling price or 0.25S
= S – 0.25S by substitution
= 0.75S but S = 27,400
= 0.75 x 27400
= 20550

The sale price of the flat TV was PhP20,550.

Explore

Here are some enrichment activities for you to work on to master and strengthen the basic concepts
you learned from this lesson

Activity 1. Complete Me!

Instructions: Complete the table by computing the required value using appropriate
formula.
A. Mark-Up
Cost Selling Price Mark-Up Mark-Up rate
(C) (S) (MU) based on cost
(MUc%)
1. _____________ PhP480 PhP120 _____________
2. PhP300 PhP405 ___________ _____________
3. PhP400 ___________ ___________ 30%

B. Mark-On
Original Selling Peak Selling Price Mark-On Mark-On rate
Price (PS) (MO) based on Selling
(S) Price
(MOS%)
4. PhP280 PhP320 __________ _________
5._____________ PhP800 PhP120 __________
6. PhP1,520 __________ _____________ 15%

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 C. Mark-Down
Original Selling Sale Price Mark-Down Mark-Down rate
Price (SP) (MD) based on Selling
(S) Price
(MDS%)
7. PhP415 PhP385 __________ __________
8.___________ PhP620 PhP74.40 _________
9. PhP3,250 _________ ___________ 20%
10.___________ _________ PhP150 25%

Activity 2. Identifying Given Values

Instructions: Identify the the given values for each situation below.

A. I am waiting for a pair of sunglasses currenttly priced at PhP 1,200 to be sold at

a sale price of P850. What rate of mark down will be necessary for this to
happen?
Given: Regular Selling Price =_____(1)_______
Sale Price =__________(2)____________
B. A Cellphone Company buys Vivo phones at PhP8,500. Expenses are set at 18%
of the selling Price and the required profit is set at 20% of the selling price.
During the weekend sale, the phone is sold at 10% discount. What is the
regular selling price of the phone?
Given: Cost = ________(3)___________
Rate of Expenses = _______(4)__________
Rate of Profit = ________(5)___________
Rate of Discount = _______(6)__________
C. Appliance store realizes a mark-up of P3,250 in selling washing machines. If
the items are sold at a mark-up of 40% of the selling price, what is the regular
selling price of the washing machine?
Given: Amount of Mark-up = ________(7)___________
Rate of Mark-up based on Selling Price=______(8)_________
D. An entrepreneur bought 225 blouses at PhP15,750. If the blouses were sold at a
mark-up of 150% based on cost, what was the amount of mark-up realized on
the purchase?
Given: Cost = ______(9)_______
Rate of Mark-up based on cost = _____(10)_________

Activity 3. Stepping Stone

Instructions: In each of the real life situations below, list down the steps to answer
the question asked.
Problems Steps
A.I am waiting for a pair of sunglasses
currenttly priced at PhP 1,200 to be
sold at a sale price of P850.
1. What rate of mark down will be

10
 necessary for this to happen?

B. A Cellphone Company buys Vivo

phones at PhP8,500. Expenses are set
at 18% of the selling Price and the
required profit is set at 20% of the
selling price.
During the weekend sale, the phone is
sold at 10% discount.
1. What is the regular selling price of
the phone?
2. What is the sale price of the phone?
C. Appliance store realizes a mark-up
of P3,250 in selling washing machines.
If the items are sold at a mark-up of
40% of the selling price,
1.what is the regular selling price of the
washing machine?
2.What was the cost of the washing
machine?
D. An entrepreneur bought 225
blouses at PhP15,750. If the blouses
were sold at a mark-up of 150% based
on cost,
1.what was the amount of mark-up
realized for each blouse sold?

Deepen

It’s time to apply what you have learned to solve problems in real life situations.

Problem Solving
Directions: Read the problem and answer the questions that follow.

During a Midnight Sale, a Tablet regularly priced at PhP8,500 was sold at 55%
discount. The cost of the Tablet is PhP3,450 and expenses are 14% of the regular
selling price.
1. Identify and represent the given values.

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2. Determine the sale price of the Tablet.
a. How did I get my answer?
Steps Solution
1. Determine the amount of
discount by multiplying the rate of
discount and the original selling
price

2. Compute for the sale price by

subtracting the amount of
discount
from the original selling price
b. Is there another way to get the answer?If yes, how?

Steps Solution

c. Is there another right answer?

3. Determine the profit or loss made on the sale.

Steps Solution
1. Compute the expenses by
multiplying rate of expense and the
original selling price

2. Solve for the profit by subtracting

the cost and expenses from the sale
price

12
 Gauge

Directions: Read carefully each item. Use a separate sheet for your answers. Write
only the letter of the best answer for each item.
For items 1-5
Notebooks were purchased by Nelly at PhP20 each. The operating cost is set at
25% and she would like to have a 20% profit on the cost of each item.
1. How much is the operating cost based from the cost of each item?
A. PhP4 B. PhP5 C. PhP9 D. PhP29
2. What is the amount of profit based from the cost of each item?
A. PhP29 B. PhP9 C. PhP5 D. PhP4
13.What is the mark-up price for each memorabilia?
A. PhP9 B. PhP24 C. PhP25 D. PhP29
14.What is the selling price of each memorabilia?
A. PhP9 B. PhP24 C. PhP25 D. PhP29
15.She noticed the increasing demand of the notebooks and decided to have 20%
mark-on. How much is the selling price after the mark-on?
A. PhP10.80 B. PhP28.80 C. PhP30 D. PhP34.80
For items 6-7
A pair of shoes regularly priced at Php1,200 was sold for only PhP850.
16.What was the amount of mark-down?
A. PhP350 B.PhP600 C. PhP850 D.PhP1,200
17.What was the rate of mark-down?
A. 25.00% B. 29.17% C. 41.18% D. 68.33%
For items 8-10
A formal dress costs PhP1350 and is sold at PhP2,025 with operating expense
set at 20% of the cost.
18.How much is the operating expenses for this item?
A. PhP270 B. PhP405 C. PhP675 D. PhP1,350
19.How much is the net profit for this item?
A. PhP405 B. PhP1,620 C. PhP270 D. PhP675
20.What is the amount of mark-up for this item?
A. PhP270 B. PhP405 C. PhP675 D. PhP1,620

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References
Printed Materials:
Department of Education. K-12 Basic Education Curriculum, Business
Mathematics Teacher’s Guide. Pasig City, Philippines, 2016.

Lopez-Mariano, Norma D. Business Mathematics. Quezon City: Rex Book Store, Inc.,
2016.
Website:
Business dictionary. Accessed July 23, 2020.
www.businessdictionary.com/definition/mark-down.html
Corporate Finance Institute. What is Mark-up? Accessed July 23, 2020.
https//corporatefinanceinstitute.com/resources/knowledge/accounting/mark-up/
Stephenson, James How to Buy and Sell for a Living. Accessed July 23, 2020.
https://www.google.com/amp/s/www.entrepreneur.com/amphtml/74316

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Answer Key:

Pre-Test
1. B 3. D 5. D 7. A 9. D
2. C 4. D 6. D 8. B 10. D

Jump Start
Linda is a student who does buy and sell on her spare time. She buys and sells
anything she believes her classmates or schoolmates would buy. If she bought a
perfume for PhP1,500 a bottle and she wanted a mark-up of 20% on cost.
1. How much will she sell for it? PhP1,800
2. If she wants a mark-on of 20% based on selling price of PhP1,700 how much is
the mark-on? PhP340
3. If she decides to have a mark-down of 15% based on selling price of PhP1,700,
how much is the mark-down? PhP255

Explore
Activity 1.
1. 360, 33.33% 6. 1748, 228
2. 105, 35% 7. 30, 7.23%
3. 420, 120 8. 694.40, 10.71%
4. 40, 14.29% 9. 2600, 659
5. 680, 17.65% 10. 600, 450

Activity 2.
1. 1,200 6. 10%
2. 850 7. 3250
3. 8500 8. 40%
4. 18% 9. 15750
5. 20% 10. 150%

Activity 3.

Steps
1.Solve for the rate of mark down by dividing the sale price with the regular
selling price
2. Represent the expenses and profit as percentage of the selling price
3. Solve for the selling price by adding the cost, operating expenses and profit
4. Solve for the sale price by multiplying the selling price with .90
5. Represent the amount of mark-up as a percentage of the selling price
6. Solve for the regular selling price by dividing the mark-up price with the rate
of mark-up
7. Solve for the cost by subtracting the amount of mark-up from the selling price
8. Represent the amount of mark-up as a percentage of the cost
9. Solve for the cost of one blouse by dividing total cost with the number of
blouses
10. solve for the mark-up by multiplying the rate of mark-up with the cost of each
blouse

15
 Deepen
During a Midnight Sale, a Tablet regularly priced at PhP8,500 was sold at 55%
discount. The cost of the Tablet is PhP3,450 and expenses are 14% of the regular
selling price.
1. Determine the sale price of the Tablet.
a. How did I get my answer?
Steps Solution
1. Determine the Discount (Mark-down) = rate of discount x
amount of discount by original selling price
multiplying the rate of
discount and the MD = 0.55 x 8500
original selling price = 4,675
2. Compute for the sale Sale Price = Original Selling Price - Discount
price by subtracting the SP = 8500 – 4675
amount of discount = 3,825
from the original selling
price
b. Is there another way to get the answer?If yes, how?

Steps Solution
1. Subtract 55% from 100% to get 100%-55% = 45%
the rate of the sale price based on
selling price
2. Determine the sale price by Sale Price = 45% x Selling Price
multiplying the rate and the selling SP = 0.45 x 8500
price = 3,825
c. Is there another right answer? none

2. Determine the profit or loss made on the sale.

Steps Solution
1. Compute for the expenses by E = rate of expenses x selling price
multiplying rate of expense and the E = 0.14 x 8500
original selling price = 1,190
2. Compute for the over all Total expenses = C+E
expenses by ading the expenses = 3450 + 1190
and the cost =4640
3. Compute for the profit by Profit = SP – total expenses
subtracting the total expenses from =3825 – 4640
the sale price = -815 (Loss)
The loss made on the sale was
PhP815

Gauge
1. B 3. A 5. D 7. B 9. A
2. D 4. D 6. A 8. A 10. C

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