3.-SLM Bus - Math Q1 W5

Lesson : Mark-on, Mark-down and Mark-up
1 QUARTER:
st
LC CODES:
Buying and Selling
WEEKS 5 ABM_BM11BS-Ig-1
What I need to know
Expected Learning Outcome/s:

1. differentiate Mark-on, Mark down and Mark-up.
2. obtain Mark-on, Mark-down, and Mark-up given price of a product
What’s In?
Write the following ratios in simplest form:

1. 14 out of 21 employees are absent.
2. 25 out of 4,000 television have defects.
3. 8 out of 100 employees are senior officers.
4. 50 students are attended to by 5 Senior High School teachers.
5. P100 tax is paid for a product that cost P2500
What’s New?
“Mark Brothers (Mark-on, Mark-down and Mark-up)”

Knowledge in fraction, decimal and ratio are important in the world of buying and selling. In starting
or doing a business, many things should be done and understood. Investments are so much important
in business and needs earn profit. The revenue after all expenses have been taken out is a good sign
that buying and selling is maximized. Buying and selling is an everyday life activity. It is everywhere
and it aims to earn a profit. For an ordinary person, it is a simple buying and selling but for
businessman, he needs to check whether transaction is profitable or not. In this section you will learn
the different concepts in doing business transactions and solve problems related to buying and selling.
Mark-on refers to what percentage must be added to the production cost of commodity in order to
attain the selling price and create profit. Sometimes stated as the difference between the selling price
and the cost of producing the product. Generally it is called margin or profit, since it is an amount
beyond what is needed. Knowing the production cost of goods makes it easier to know the margin.
Mark-down is a practice of lowering a regular price or original selling price of a certain product or
goods. The practi+ce aims of attracting more costumer and more sales, to be within the competitor's
price, to reduce large inventories,to clear old and slow moving stocks. Mark-down is also the
difference between the regular selling price and the new price to be used.
Mark-up is the amount by which the regular or original selling price is further increased. It means
that from the original selling price, a retailer may raise the regular selling price of his inventories due
to an increased of price in the market or if the supply is insufficient. As previously explained, the
regular or the original selling price already contains the percentage or margin based on the production
cost. But to keep up with the market price, additional margin is likely needed.
Mark-on, mark-up and mark-down can be computed by considering the following formula:
1. Mark-on
SP = CP + MO
Selling price = Cost of production + Mark-on
2. Mark-on rate or percent
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a. Based on cost of production
MO
MORC = X 100%
CP
b. Based on selling price
MO
MORS = X 100%
SP
3. Mark-down
Md = OSP – RSP
Mark-down = Original selling price – reduce sales price
4. Mark-down rate of percent
MD
MDR = X 100%
OSP
5. Mark-up
MU = ISP – PSP
Mark-up = Increased sales price – previous sales price
6. Mark-up rate or percent
MU
MUR = X 100%
PSP
What’s More?
Mark Brothers are planning to enter the world of online selling, which includes the idea
of mark-on, mark-up and mark-down, to help them let us answer the following:
1. If they’re going to sell Dedication Cake
Mark Brother’s Selling Price . . . . . . . . . Php 505
Supplier price. . . . . . . . . . . . . . . . . . . . . Php 355
Mark-on/profit . . . . . . . . . . . . . . . . . . . ________
2. If they’re going to sell pack of marinated Jollibee chicken joy in a lower price.
Regular price . . . . . . . . . . . . . . . . . . . . Php 450
New price. . . . . . . . . . . . . . . . . . . . . . . Php 385
Mark-down. . . . . . . . . . . . . . . . . . . . . . ________
3. If they’re going to sell Bicycle during ECQ
Increased price . . . . . . . . . . . . . . . . . .Php 3500
Price before the increased . . . . . . . .Php 2800
Mark-up. . . . . . . . . . . . . . . . . . . . . . . . .________
Note: answers from 1-3 are provided in the next part.
What I Have Learned?
“Mark Rates”
Below are the answers from previous examples let us solve for their corresponding rates:
1. If they’re going to sell Dedication Cake

Mark Brother’s Selling Price . . . . . . . . . Php 505
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Supplier price. . . . . . . . . . . . . . . . . . . . . Php 355
Mark-on/profit . . . . . . . . . . . . . . . . . . . Php 150
a. Based on cost of production
MO
MORC = X 100% MORC = 0.4225 X 100%
CP
150
MORC = X 100% MORC = 42.25%
355
b. Based on selling price

MO
MORS = X 100% MORS = 0.2970 X 100%
SP
150
MORS = X 100% MORS = 29.70%
505
2. If they’re going to sell pack of marinated Jollibee chicken joy in a lower price.
Regular price . . . . . . . . . . . . . . . . . . . . Php 450
New price. . . . . . . . . . . . . . . . . . . . . . . Php 385
Mark-down. . . . . . . . . . . . . . . . . . . . . . Php 65
MD
MDR = X 100% MDR = 0.1444X 100%
OSP
65
MDR = X 100% MDR = 14.44%
450
3. If they’re going to sell Bicycle during ECQ
Increased price . . . . . . . . . . . . . . . . . .Php 3500
Price before the increased . . . . . . . .Php 2800
Mark-up. . . . . . . . . . . . . . . . . . . . . . . . .Php 700
MU
MUR = X 100% MUR = 0.25X 100%
PSP
700
MUR = X 100% MUR = 25%
2800
What I Can Do?
Sample Problems:
Mark Brothers are now ready to be online sellers; here are some of their products
online:
1. During the ECQ Mark Brothers bought Leche flan for 30 pesos each to their supplier.
They are selling the item for 50 pesos each. How much is the mark-on? What is the Mark-on
rate?
2. After a week of selling Leche flan Mark brothers notice that the demand in selling the
leche flan is high and the supplies are limited only, that’s why they decide to increase the
selling price to 65 pesos. Determine the Mark-up of the Mark Brother’s Leche flan selling
price. What is the mark-up rate?
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3. After a month of ECQ, MECQ is being implemented; Mark Brothers decided to
decrease the price of leche flan to 40 pesos. How much is the mark-down price of leche flan
based on original selling price? What is the mark-down rate?
4. Together with leche flan, Mark Brothers are also selling cakes during ECQ and MECQ,
solve for the rate of Mark-on, Markup and markdown.
Supplier Price – Php 355
During first week of ECQ cake price – Php 505
After a week of ECQ price – Php 555
During MECQ price – Php 485
Mark-on = ? MORC =?
Mark-up = ? MDR =?
Mark-down = ? MUR =?
Assessment
Solve the following problem. You may not show your solution. Mental calculation may
apply.
1. Manang Crising observes that market goers prefer to buy fish from her because there is an
undersupply of meat in the market this season. She then decides to increase the price of
galunggong by PHP10 per kilo. If the cost of galunggong is PHP90 per kilo with a 35%
mark-up, what is its new selling price with the additional increase of PHP10? By how
much is the rate of mark-up based on cost increased by adding PHP10 to the regular
selling price of the galunggong?
2. Yvette’s Flower Shop imposes a 45% mark-up on flowers delivered to them for sale.
During All Saint’s Day, however, an additional mark-on of 25% of the regular selling
price is added on. Determine the unit price of 300 roses worth PhP15,000 delivered to
Yvette’s Flower Shop during All Saint’s Day. How much is the selling price of each rose
during All Saint’s Day at this flower shop?
3. Carlo was able to buy a pair of shoes regularly priced at PhP3,500 for only PhP2,100.
What was the amount of the mark-down? What was the rate of the mark-down?
4. During a Midnight Madness Sale, a board game regularly priced at PhP8,500 was sold at
55% discount. The cost of the board game is PhP3,450 and expenses are 14% of the
regular selling price. What was the amount of markdown and its rate?
5. Super Mall paid PhP15,000 for a set of dishes. Expenses are 18% of the selling price
while the required profit is 15% of the selling price. During an inventory sale, the set of
dishes was marked down by 30%.
a. What was the regular selling price?
b. What was the sale price?
c. What was the profit or loss?
Additional Activities
1. I am waiting for a pair of sunglasses currently priced at PhP1250 to be sold at a sale price
of PhP875. What rate of mark-down will be necessary for this to happen?
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2. The Cellphone Company buys iPhones at PhP24,000. Expenses are set at 17% of the
selling price and the required profit is set at 20% of the selling price. During a weekend
sale, the iPhone is sold at 10% discount.
a. What is the regular selling price of the iPhone?
b. What is the sale price of the iPhone?
c. How much did The Cellphone Company gain or lose when the iPhone was sold
during the weekend sale?
References
Nipas Jr., M. S. etal (2016). OLFU Business MATH
Paderes L. I. etal (2016). Teaching Guide For Senior High school by CHED
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Lesson : Markup, Margins, Single Trade Discounts and Discount Series
CONTENT
1ST : LC CODE:
QUARTER: Buying ABM_BM11BS-Ih-3
WEEK 6 and ABM_BM11BS-Ih-4
Selling
What I need to know
At the end of this material, you should be able to:

1. Differentiate Markup from margins.
2. Describe how gross margins used in sales.
3. Compute single trade discounts and discount series.
What’s In?
In a sports store, trainers cap originally priced at ₱ 2,850.00 are sold at ₱ 2,500.00.
Compute the markdown and the rate of markdown. Can you compute the markup
price of the product?
What’s New?
A. Markup – to cover the cost of doing business and to earn profit, the retailers needs to sell
their items at a higher price. This is done by adding to the cost of their merchandise. Thus, a
markup is the difference between the selling price and the cost of the merchandise. We can
summarize this relationship in the following equation:
B. Markup based on Cost- the markup is usually expressed as the percentage of
the cost of the product. This percentage is called the markup rate based on the cost.
In this case the selling price is calculated by multiplying the markup rate to the cost,
and the adding the result to the cost of the merchandise. That is:
C. Margin- markup based on the selling price is often called the margin. The margin (or
gross margin) is the selling price minus the cost of goods sold. It is obtained by multiplying
the selling price by the percentage margin.
D. Markup based on Selling Price - is known as the percentage margin.
E. Trade Discounts – is a deduction from the list price granted to buyers. It is also
considered as a large deduction given to whole sellers and manufacturers to enable them to
make bigger profit. This is usually expressed as a percentage of the list price. This
percentage is known as trade discount rate or rate of discount. The resulting price after
the discount is applied is called the net price or the invoice price.
Assuming that list price and the discount rate are known. There are two methods in
determining the net price;
(a) Discount Method - The discount method is useful if you want to find out both net
price and the actual amount of the discount.
(b) Complement Method – this involves computing the complement rate, that is 100%
minus the discount rate. That is,
F. Discount Series – is s successive trade discount rates offer by the seller to dispose the
goods more quickly. Both discount and complement method can be used in computing the
net price for a series of discounts.
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6|Business Math: Buying and Selling: 1 Quarter: Week5-9
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G. Equivalent Single Trade Discounts Rate – We have to remember that s discount series
of 20% and 10% is not the same to a single discount of 30%. To compute the single discount
rate, we first deduct each rate each rate in the discount series individually from 100%. Then
multiply the differences to get the net price. Finally, we deduct the net price from the list price
to get the single trade discount.
What is It
Sample Problems:
1. If a business marks the price of a V cut T-shirt bought for ₱100.00 to sell at ₱ 150.00.
What is the mark up price?
Solution:
Markup = Selling Price - Cost
Markup = ₱ 150.00 - ₱100.00
Markup = ₱50.00
A simple manipulation of the formula above will give us the following formula:
Selling Price = Cost + Markup
Cost = Selling Price – Markup
2. A dealer bought 15 crates of bananas at ₱ 11, 250.00. If the dealer imposed a 40%
markup rate based on the cost, Find the
a. cost per crate of the bananas; and

b. amount of markup per crate of bananas
Markup = Markup rate X Cost
and so;
Selling Price = Cost (1+ Markup rate)
Markup rate = Markup ÷ Cost
Solution:
(1) Cost = ₱ 11,250.00 ÷ 15 = ₱ 750.00 per crate of bananas.
(2) Selling Price = Cost (1+ Markup rate)
= ₱750 (1+.40) = ₱750 (1.40)
= ₱ 1,050.00 is the selling price per crate
(3) Markup = Markup rate X Cost
= 0.40 X ₱ 750.00
= ₱ 300.00
Another Method
Markup = Selling Price – Cost
= ₱ 1,050.00 - ₱ 750.00
= ₱ 300.00
3. A shop sells a laptop computer at ₱ 20,000.00. If each computer cost
₱ 16,500.00. What is the markup rate?
Solution: Solving for the Markup rate:

Markup = Selling price – Cost
= ₱ 20,000.00 - ₱ 16,500.00
Markup = ₱ 3,500.00
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Another method for solving the Markup rate:
4. A home appliance retailer bought 10 electric fans at ₱ 1,050.00 each. He sold

each unit with 25% markup based on the selling price. Find the
(a). selling price for each of electric fan; and
(b) margin per electric fan.
Solution:
(a).
Selling Price = ₱ 1,400.00
(b) Margin = Selling Price – Cost

= ₱ 1,400.00 - ₱ 1,050.00
Margin = ₱ 350.00
5. Based on the above example, find the percentage margin?
Percentage Margin = Margin ÷ Selling Price

= ₱ 350 ÷ ₱ 1,400
Percentage Margin = 25%
Another Method:
Percentage Margin = 25%
6. An auto supply store sells auto spare parts for ₱ 9,600.00, subject to a 12% trade
discount. Calculate the discount price and the net?
(a) Solve for Discount Price

Solution:
Discount Price = Rate of discount X List Price
= (0.12) (₱ 9,600.00)
= ₱ 1,152.00
(b) Net Price (using discount method)
Net Price = List Price – Discount Price
= ₱ 9,600.00 -₱ 1,152.00
= ₱ 8,448.00
Net Price (using Complement method)
Complement rate = 100% - Trade discount rate
= 100% - 12%
= 88% or 0.88
Net Price = Complement Rate X List Price

= (0.88) (₱ 9,600.00)
= ₱ 8,448.00
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7. Flor pays ₱ 390.00 for a dress listed at ₱ 650.00. What is the rate of discount?
Solution:
= 0.40 or 40%
8. A list price of a large flat screen television set is ₱ 27,450.00, subject to 10%, 8%,
and 5% trade discounts (series). Compute the net price of the television set.
Solution: Using the discount method, we have the following discount series net
prices.
List Price Discount Discount Price Net Price

Rate
₱ 27,450.00 10% (0.10) (₱27,450.00) = ₱2,745.00 ₱ 27,450 - ₱2,745 = ₱24,705.00
₱24,705.00 8% (0.08) (₱24,705.00) = ₱1,976.40 ₱24,705 - ₱1,976 = ₱22,728.60
₱22,728.60 5% (0.05) (₱22,728.60) = ₱1,136.43 ₱22,728.60 - ₱1,136.43 =
₱21,592.17
Thus, the net price of the television set is ₱21,592.17
Solution: Using the complement method to compute the net price of the product.
1. Express each trade discounts to 3. Multiply each result.
decimals. = (0.90) (0.92) (0.95) = 0.7866
10% = 0.10 4. Multiply the result to the list price.
8% = 0.08
5% = 0.05 Net Price = (0.7866) (₱27,450.00)
2. Subtract each from 1. = ₱21,592.17
1 – 0.10 = 0.90
1 – 0.08 = 0.92
1 – 0.05 = 0.95
9. A scientific calculator worth ₱ 1,495.00 is subject to 10% and 5% trade discounts. Find the
following:
(a) single trade discount rate equivalent to the two trade discounts.
(b) net price; and
(c) trade discount price.
Solution (a): Solving for the single rate discount
r = 1 – (1-10%) (1-5%)
r = 1 – (1-0.10) (1-.05)
r = 0.145 or 14.5%
Solution (b): Solving for the net price
→ →
= ₱ 1,278.23
Solving for the Trade discount price.

Trade discount = List Price – Net Price
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= ₱ 1,495.00 - ₱ 1,278.23 = ₱ 216.77
What’s More?
Solve the following problems:

1. A motorcycle salesman bought a scooter at ₱47,500.00. Find the selling price if he
wishes to have a 25% markup based on the cost.
2. An electronics store sells headphones at ₱1,899.00. If each headphone costs the
store ₱1,200.00, determine the markup and the rate of markup based on the cost.
3. A fruit dealer bought five crates of mangoes at ₱3,150.00. If each crate contains
20 kilograms, and the dealer imposed a 30% markup based on the cost, find the
selling price per kilogram of mangoes.
4. A purchasing manager of a business firm bought 10 dozen pairs of shoes for
₱101,040.00. If he sold each pair for ₱1,180.00, find the markup and the rate of
the markup based on the cost.
5. An appliance store purchases refrigerators at ₱11,700.00 per unit. What is the
selling price per refrigerator if the store wishes to have a 30% margin?
1. List Price – is the manufacturer’s suggested retail price for a product.

2. Margin – is the selling price minus the cost of goods sold.
3. Markup – A markup is the amount added to the cost of the merchandise to obtain
a higher amount known as selling price.
4. Markup based on Cost – means that the cost is the base and therefore taken as
100%.
5. Markup based on Selling Price – means that the selling price is the base and
taken as 100%.
6. Trade discount price – is the deduction from list price granted to buyers
The following are the formulas used.
1. Markup
Markup = Selling Price - Cost
Selling Price = Cost + Markup
Cost = Selling Price – Markup
2. Markup based on Cost
Markup = Markup rate X Cost
Selling Price = Cost (1+ Markup rate)
Markup rate = Markup ÷ Cost
3. Margin
Margin = Percentage Margin X Selling Price
4. Markup based on Selling Price
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Percentage Margin = Margin ÷ Selling Price
5. Trade Discounts
(a) Discount Method
Discount Price = Rate of discount X List Price
Net Price = List Price – Discount Price
, or
(b) Complement Method

Complement rate = 100% - Trade discount rate
6. Equivalent Single Trade Discounts Rate –

In symbols the single trade discount rate is given by
r = 1 – (1-r1) (1-r2) (r3) …. (1-rk)
What I Can Do?
Show your solution in a separate sheet.

1. Find the single rate equivalent of the following series of discounts:
a. 15% and 10%
b. 12% and 8%
c. 10%, 10%, and 5%
d. 20%, 15%, and 10%
2. An expensive wristwatch was priced at ₱40,000.00 subject to 20% and 10%
discounts. Find the
a. single rate equivalent of the two discounts;
b. total amount of the two discounts; and
c. additional discount rate that would further bring down the price to
₱27,000.00.
3. The list price of an industrial machine is ₱84,500.00 and is subject to a 10%
discount. What additional discount should be given to bring down the price to
₱70,000.00
Assessment
Solve the ff: Write your solution in a separate sheet.

1. A sports trader bought a basketball jersey for ₱1,500.00, subject to a 35% trade
discount. Find the net price and the trade discount.
2. A computer wholesaler bills a retailer ₱16,750.00 for a laptop computer, subject to
a 10% trade discount. How much is the net price for the laptop?
3. What is the rate of trade discount if a retailer buys an item worth ₱3,850.00 for
₱3,250.00 instead?
11 | B u s i n e s s M a t h : B u y i n g a n d S e l l i n g : 1 s t Q u a r t e r : W e e k 5 - 9
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4. A restaurant buys a case of 24 bottles of soft drink from a wholesaler for ₱216.00.
If the list price is ₱288.00, find the rate of trade discount.
5. An office machine worth ₱36,550.00 is subject to 15% and 10% discounts. Find
the net price of this machine and the total amount of discount.
Enhance your learning by solving the problems below. Use separate sheet for your
solution.
1. A piece of furniture is to be sold at a profit margin of 20%. If it costs ₱4,450.00, find
the selling price and the margin.
2. A sari-sari store owner buys rice at a wholesale price of ₱1,900.00 for a 50-
kilogram sack. How much should he sell the rice per kilogram if he wishes to have
a 35% margin?
3. A retailer buys goods at ₱1,450.00 per item and prices them to sell at ₱1,750.00
each. Compute the margin and percentage margin per item.
4. A trading firm sells a laptop computer at ₱19,550.00. If each unit originally costs
₱15,000.00, compute the markup, the markup rate, and the percentage margin.
5. A retailer buys an item worth ₱27,300.00 subject to trade discounts of 10%, 8%,
and 5%. Find the net price and the amount of trade discount.
References
Lopez, Norma. 2016. Business Mathematics. Rex Bookstore

Chan Shio, Christian Paul et.al. 2017. Business Mathematics for Filipinos
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Lesson: Profit and Loss
LC CODE:
CONTENT:
1ST QUARTER: ABM_BM11BS-Ii-6
Buying and
WEEK 7 and
Selling
ABM_BM11BS-Ii-7
What I need to know
This material enables the student to be more aware on how business or an

entrepreneur gain profit and how they avoid losses on their business. At the end of
this material, the student should be able to:
1. Differentiate profit from loss.
2. Illustrate how profit is obtain and how to avoid loss in a given transaction.
What’s In?
A restaurant buys a case of 24 bottles of soft drink from a whole seller for ₱ 216.00. If
the list price is ₱ 288.00, find the rate of trade discount. If the restaurant sold each soft drink
at a price of ₱ 12.00, calculate the profit or loss of the restaurant from buying 24 bottles of
soft drink.
What’s New?
A. Determining Profit - profit is the difference between gross revenue and the total cost,
provided that revenue is greater than the cost. In other words, profit is the amount of money
left after all the costs and payables have been deducted from the earnings generated from
the business.
B. Avoiding Losses - is the difference between the total cost and the total revenue,
provided the cost is greater than the revenue.
What is It
Sample Problems:
1. A carinderia owner earned a total of ₱ 5, 650.00 for the day. Looking at her notebook, she
noted that she has spent a total of ₱ 3, 125.00 on the same day to cover all the ingredients
and other things she used to her store. Determine her profit for the day, if any?
Solution: Her gross revenue is ₱5,650.00, while her total cost is ₱3,125.00. Then, her profit
is given by:
Profit = Revenue - Cost
= 5,650 – 3,125
Profit = ₱2, 525
2. Juan sells bracelets to earn extra cash. He sells them for ₱20.00 each. To produce one
bracelet, he spends ₱17.00 for the needed materials. How much is his profit if he was able
to sell 21 bracelets?
Solution: The amount of his total sales is ₱20 X 21 bracelets or ₱420.00, while his total cost
is ₱17 X 21 bracelets or ₱357.00. Then, his profit is given by
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= 420 – 357
Profit = ₱63
Alternatively, notice that he has to spend ₱17.00 to make one bracelet, but will
receive ₱20.00 if he sells them. Hence, for each bracelet, he will earn a profit of ₱20 - ₱17 or
₱3.00. Since he was able to sell 21 bracelets, then his profit is ₱3 X 21, or ₱63.00.
Given the unit price and the unit cost of any item, the profit per item is given by
Unit profit = Unit price – Unit costs

then, the total profit is given by
Profit = Unit Profit X Quantity Sold
Aside from the cost of goods sold, each business also has some fixed costs to cover.
These include utilities, labor, operating expenses, and so on. These are the costs that are
not affected by the amount of goods sold.
3. Maria owns a small pastry shop that sells cupcakes. Last month she was able to sell
1,012 cupcakes for ₱45.00 each. To produce one cupcake, she has to spend ₱33.00 for the
ingredients. Aside from the costs of goods bought, she has also to pay for the rent and
electricity that amount to ₱4,000.00 and ₱2,300, respectively. How much is her profit for the
month?
Solution:
Total sales = ₱45 X 1,012
= ₱45, 540.00
Production costs = ₱33 X 1,012
= ₱33,396.00. Then, her profit is given by
Profit = Revenue - Costs
Since, rent and electricity are her fixed cost, she has to include it in her total costs.
Therefore:
Profit = 45,450 – (33,396 + 4,000 + 2,300)

Profit = ₱5, 844
4. A small sari- sari store earned a total of ₱7, 124.00 last month. On the other hand, its
expenses include ₱5,145.00 for groceries and ₱2,100.00 for electricity. How much was its
profit, if any?
Solution:
Revenue = ₱7, 124.00
Total Costs = ₱5, 145.00 + ₱2, 100.00
= ₱7, 245.00.
Profit = Revenue – Cost
= ₱7, 124 - ₱7, 245, since cost is greater than the
revenue, then the store does not have a profit.
5. Determine the loss incurred by the sari - sari store.
Solution:
Revenue = ₱7, 124.00
Total Costs = ₱5, 145.00 + ₱2, 100.00
= ₱7, 245.00.
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Loss = Cost - Revenue
= ₱7, 245 - ₱7, 124
Loss = ₱121.00
6. Betty plans to sell customized bags in upcoming bazaar. To create one bag, she has to
spend ₱412.00 for the materials, and she will sell it for ₱450.00. To participate in the bazaar,
she has to pay participation and rental fees totaling ₱5,000.00 If she was able to create 130
bags, and she believes she can sell them all, should she participate in the bazaar?
Solution:
Revenue = ₱450 X 130
Total Revenue = ₱58, 500.00
Fixed Cost = ₱5,000.00
Cost = ₱412 X 130 = ₱53, 560.00
Total Cost = ₱58,560
Since the total revenue is < the total cost, therefore the formula to be used is;
Loss = Cost – Revenue
= ₱58,560.00 - ₱58, 500.00
Loss = ₱60.00. Since she will incur a loss, it would be the best for her not to join the bazaar
or produce more bags to gain profit.
7. Andres designs and produces customized shirts. He sells them for ₱450.00 per shirt.
Plain shirts cost him ₱120.00, and his monthly utilities costs ₱7, 410.00. How much
customized shirts should he sell to avoid incurring losses?
Solution:
Let n be the number of shirts Andres should sell for him to avoid losses, his total revenue
must be greater that the total cost. Therefore,
Revenue > Cost

250n > 120n + ₱7,410
250n – 120n > ₱7,410
130n > ₱7,410
130 130
n > 57. That is, he has to sell more than 57 shirts to avoid losses.
What’s More?
Show your solution in separate sheet.

1. A watch store owner decide to offer a 20% discount for a particular brand o watch which
sells at ₱ 35,000.00. By doing so, his average sales increased from 5 watches to 12 watches
a day. If he bought one watch at a price of ₱ 22,000.00 from the supplier, by how much was
the daily profit increased or decreased upon offering such discount on the watch?
2. Annie bought one dozen of smart phones for ₱ 200,000.000 with a discount of 5%. Half
dozen was sold at a price of ₱ 18,000.00 per unit. However, a new model of smartphone
became available in the market, so she sold the remaining half dozen at ₱ 12,000.00 each
unit. What was her profit or loss?
3. Jay-R bought two digital cameras at ₱ 15,490.00 each. He sold one of the cameras to his
friend at ₱ 13,500.00 while the other one was sold to his neighbor at ₱ 16,200.00. How
much is Jay-R’s profit or loss?
4. Michelle went to Baguio and bought twenty jars of strawberry jam for ₱ 3,500.00 with 15%
discount. When she got back to Manila, she sold ten of the jams for a total of ₱ 1,800.00,
and the rest at ₱ 185.00 each. How much profit did Michelle gain?
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1. Profit – a financial gain, especially the difference between the amount earned and the
amount spent in buying, operating, or producing something.
 The profit is the difference between the gross revenue and the total cost, provided that
the revenue is greater than the cost.
2. Loss – a loss is an unanticipated decrease in a resource or asset outside of normal
business operations.
 The loss of a business is the difference between the total cost and the generated
revenue, provided that the cost is greater than the revenue.
3. Gross sales refer to the total sales. Sales discounts and sales returns and
allowances are deducted from the gross sales to arrive the net sales.
4. Cost of sales is the purchased price and other expenses incurred in buying the
products that the business has to sell including the freight- in or transportation of the
goods it buys or resale.
5. Fixed Cost – are those that do not change no matter how many units are sold such as;
rent for store fronts, production facilities, computers and software, advertising, and public
relations.
6. Total Revenue – is the total receipts a seller can obtain from selling goods or services to
buyers.
7. Total Cost - is an economic measure that sums all-expense paid such as fixed cost,
variable cost and overhead expenses.
What I Can Do?
Use separate sheet to answer the problems below.
1. Tessie sells jewelry. She had a piece that costs her ₱ 12,800.00, which she sold
for ₱ 16,000.00. The only expense for her washer transportation totaling to ₱ 560.00. How
much profit did she earned?
2. Jaime bought a digital camera for ₱ 18,000.00 and spent ₱ 800.00 on its spares.
He later sold it for ₱ 22,300.00. How much is Jaime’s profit?
3. Find the profit or loss as percent; when house and lot is bought for ₱ 1,200,000.00
and sold for ₱ 900,000.00.
Assessment
Solve the following Problems. Show your solution in separate sheet.

1. A local bookstore earned a total of P7,510.00 for the day. If the expenses incurred for
today reached P6,125.00, determine the bookstore’s profit/loss.
2. Mark was able to generate revenue of P1,650.00 from his car wash business today. If
his profit was P530.00, how much was the expense he incurred for the day?
3. A manufacturing company had a total revenue of P21,640.00 for the month of July. The
expenses that the company incurred for the said month can be seen below.
Costs of Goods Sold : P5,641.00

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Operating Costs : 6,712.00
Depreciation Costs : 1,245.00
Taxes : 2,412.00
Did the company earn profit or incur a loss? How much is its profit/ loss?
4. A local souvenir shop sells two kinds of shirts. The first shirt sells for P250.00, while
the second shirt sells for P200.00. If the unit cost of the shirts is P195.00 and P142.00,
respectively, and the shop has a fixed cost of P4,500.00, determine the profit/loss if 51 of
the first shirt and 47 of the second shirt are sold.
5. Bea has the option to join a bazaar where she could sell bags. To create one bag, she
has to spend P412.00 for the materials, and she will sell one for P450.00. The bazaar has
participation and rental fees of P4,750.00. She can make 120 bags in time for the bazaar,
and she believes that she can sell them all. Should she participate in this bazaar?
Solve each problem below. Show your solution in separate sheet.
1. Carmen does buy and sell. She bought a perfume for ₱450.00. She sold it for
₱600.00. If she was able to sell 50 pieces of perfume, how much profit did she earn?
2. A television set purchased for ₱5,400.00 was resold for ₱4,800.00. How much
was the profit/loss in the transaction?
3. Ester has a small store. Lat month, she purchased merchandized costing
₱75,000.00 for which she paid freight of ₱7,500. She sold 60% of the merchandized
for ₱68, 000.00 after spending for various expenses totaling ₱13,000.00. She also
paid ₱2,000.00 for the interest money she borrowed for her store.
a. How much gross profit did she make?
b. What was her net profit?
4. A retail store sells shoes for P2,500.00 per pair. For the month of August, it was able to
sell 125 pairs of shoes. The expenses the store incurred for the said month can be seen
below.

Taxes : 15,000.00
Did the store earn profit or incur a loss? How much is its profit/loss?
5. The total cost and the total revenue (in thousands of pesos) for the production
and sale of x laptops are given, respectively, by
C ( x) = 15x + 600
R (x) = 150x − 3x 2, 0 ≤ x ≤ 60.
a. Find the profit function P( x).
b. For what value(s) of x will the sale of laptops lead to a profit?
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6. The unit cost of producing one box of chocolates is P150.00, while its unit price is
P200.00. There is a fixed cost of P7,500.00 that includes utilities and rent expenses.
a. How many boxes of chocolates should be sold to have a profit of P3,200.00?
b. If 137 boxes of chocolates are sold, how much is the profit earned/loss incurred?
7. You are given the following data for the Summit Marketing Co. as of January 31,
2020.
Sales ₱ 127,500
Purchases (Merchandise) ₱ 57,000
Freight In ₱ 5,000
Taxes and Licenses ₱ 900
Communication expense ₱ 300
Heat, Light and Water ₱ 1,240
Store supplies expense ₱ 1,180
Office Supplies expense ₱ 730
Miscellaneous expense ₱ 2,090
a. How much is the cost sales?

b. How much is the gross profit?
c. How much is the net profit/loss?
References

https://www.invoiceberry.com
https://study.com
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LC CODE:
CONTENT:
Buying and
WEEK 7 and
Selling
ABM_BM11BS-Ii-7
What I need to know

What’s In?
soft drink.
What’s New?
the business.
What is It
Sample Problems:
is given by:
= 5,650 – 3,125
Profit = ₱2, 525
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= 420 – 357
Profit = ₱63

month?
Solution:
= ₱45, 540.00
Therefore:
Profit = 45,450 – (33,396 + 4,000 + 2,300)

Profit = ₱5, 844
profit, if any?
Solution:
Revenue = ₱7, 124.00
Total Costs = ₱5, 145.00 + ₱2, 100.00
= ₱7, 245.00.
Solution:
Revenue = ₱7, 124.00
Total Costs = ₱5, 145.00 + ₱2, 100.00
= ₱7, 245.00.
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= ₱7, 245 - ₱7, 124
Loss = ₱121.00
Solution:
Cost = ₱412 X 130 = ₱53, 560.00
= ₱58,560.00 - ₱58, 500.00
Solution:
Revenue > Cost

250n > 120n + ₱7,410
250n – 120n > ₱7,410
130n > ₱7,410
130 130
What’s More?

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relations.
buyers.
What I Can Do?
and sold for ₱ 900,000.00.
Assessment


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Taxes : 2,412.00
11. Bea has the option to join a bazaar where she could sell bags. To create one bag,
she has to spend P412.00 for the materials, and she will sell one for P450.00. The bazaar
has participation and rental fees of P4,750.00. She can make 120 bags in time for the
bazaar, and she believes that she can sell them all. Should she participate in this bazaar?
below.

Taxes : 15,000.00
C ( x) = 15x + 600
R (x) = 150x − 3x 2, 0 ≤ x ≤ 60.
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b. How many boxes of chocolates should be sold to have a profit of P3,200.00?
2020.
Sales ₱ 127,500

References

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LC CODE:
CONTENT:
Buying and
WEEK 7 and
Selling
ABM_BM11BS-Ii-7
What I need to know

What’s In?
soft drink.
What’s New?
the business.
What is It
Sample Problems:
is given by:
= 5,650 – 3,125
Profit = ₱2, 525
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= 420 – 357
Profit = ₱63

month?
Solution:
= ₱45, 540.00
Therefore:
Profit = 45,450 – (33,396 + 4,000 + 2,300)

Profit = ₱5, 844
profit, if any?
Solution:
Revenue = ₱7, 124.00
Total Costs = ₱5, 145.00 + ₱2, 100.00
= ₱7, 245.00.
Solution:
Revenue = ₱7, 124.00
Total Costs = ₱5, 145.00 + ₱2, 100.00
= ₱7, 245.00.
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= ₱7, 245 - ₱7, 124
Loss = ₱121.00
Solution:
Cost = ₱412 X 130 = ₱53, 560.00
= ₱58,560.00 - ₱58, 500.00
Solution:
Revenue > Cost

250n > 120n + ₱7,410
250n – 120n > ₱7,410
130n > ₱7,410
130 130
What’s More?

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relations.
buyers.
What I Can Do?
and sold for ₱ 900,000.00.
Assessment


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Taxes : 2,412.00
17. Bea has the option to join a bazaar where she could sell bags. To create one bag,
she has to spend P412.00 for the materials, and she will sell one for P450.00. The bazaar
has participation and rental fees of P4,750.00. She can make 120 bags in time for the
bazaar, and she believes that she can sell them all. Should she participate in this bazaar?
below.

Taxes : 15,000.00
C ( x) = 15x + 600
R (x) = 150x − 3x 2, 0 ≤ x ≤ 60.
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c. How many boxes of chocolates should be sold to have a profit of P3,200.00?
2020.
Sales ₱ 127,500

References

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Lesson : Mark-on, Mark-down and Mark-up

What I need to know

Expected Learning Outcome/s:

Write the following ratios in simplest form:

“Mark Brothers (Mark-on, Mark-down and Mark-up)”

What I Have Learned?

1. If they’re going to sell Dedication Cake

b. Based on selling price

What I Can Do?

Nipas Jr., M. S. etal (2016). OLFU Business MATH

What I need to know

At the end of this material, you should be able to:

a. cost per crate of the bananas; and

Solution: Solving for the Markup rate:

4. A home appliance retailer bought 10 electric fans at ₱ 1,050.00 each. He sold

(b) Margin = Selling Price – Cost

5. Based on the above example, find the percentage margin?

Percentage Margin = Margin ÷ Selling Price

Percentage Margin = 25%

(a) Solve for Discount Price

Net Price = Complement Rate X List Price

List Price Discount Discount Price Net Price

Solving for the Trade discount price.

Solve the following problems:

What I Have Learned?

1. List Price – is the manufacturer’s suggested retail price for a product.

The following are the formulas used.

4. Markup based on Selling Price

Discount Price = Rate of discount X List Price

Net Price = List Price – Discount Price

(b) Complement Method

6. Equivalent Single Trade Discounts Rate –

What I Can Do?

Show your solution in a separate sheet.

Solve the ff: Write your solution in a separate sheet.

Lopez, Norma. 2016. Business Mathematics. Rex Bookstore

What I need to know

This material enables the student to be more aware on how business or an

Unit profit = Unit price – Unit costs

Profit = 45,450 – (33,396 + 4,000 + 2,300)

5. Determine the loss incurred by the sari - sari store.

Revenue > Cost

Show your solution in separate sheet.

What I Can Do?

Use separate sheet to answer the problems below.

Solve the following Problems. Show your solution in separate sheet.

Costs of Goods Sold : P5,641.00

Solve each problem below. Show your solution in separate sheet.

Costs of Goods Sold : P165,000.00

a. How much is the cost sales?

Lopez, Norma. 2016. Business Mathematics. Rex Bookstore

What I need to know

This material enables the student to be more aware on how business or an

Unit profit = Unit price – Unit costs

Profit = 45,450 – (33,396 + 4,000 + 2,300)

5. Determine the loss incurred by the sari - sari store.

Revenue > Cost

Show your solution in separate sheet.

What I Can Do?