11

Business Mathematics
Quarter 1
MELCS 11&12
Profit and Loss

Learner’s Packet
 Business Mathematics

Schools Division Office Management Team: Rosemarie C. Blando, August F.

Jamora, Merle B. Lopez, Marilou P. Apostol

Business Mathematics
Quarter 1
Learner’s Material
First Edition, 2020

Published by: Department of Education SDO - Rizal

Schools Division Superintendent: Cherrylou D. Repia
Assistant Regional Director: Ruth L. Fuentes
 WEEK

What I need to know?

This module was designed and made for the learners to demonstrate an understanding of key
6
concepts in buying and selling.

After going through this module, you are expected to:

1. Differentiate profit from loss.

2. Illustrate how profit is obtained and how to avoid loss in a given transaction.

What’s In?
Due to covid19 pandemic, economic situations are affected. All the major industries
of the world are devastating. Companies and business are taking major hits and expecting
revenue to take significant falls due to direct impact of the outbreak. Despite of the situation,
companies are struggling to adjust their business strategies to bounce back, survive and to
reach its main goal to gain wealth and maximize profit.
Profit and loss also known as Income Statement and one of the most essential
financial statements in buying and selling type of business. The ability to generate profit is
crucial to the survival of the business. It is about more than just making money but also the
ability to use surplus funds to invest and grow business.

What’s New? PICTURE ANALYSIS!

https://pluspng.com/profit-and-loss-png-2463.html

How will you describe or interpret the picture?

What does this profit-loss-risk mean?

Trivia!

The most Successful Businesses in the Philippines that Will Inspire You
 by ROEL MANARANG Source: https://tycoon.ph/successful-businesses-philippines/

“We know that there’s no shortcut to a business success without determination and hard
work. Most of the successful business owners have experienced the worst cases
scenarios that could happen on a business. Some entrepreneurs came from rags to riches
and their stories somehow inspire other entrepreneurs to do business.”

SM
This company owned by Henry Sy is one of the biggest companies in
our country. This is a retail center where various brands of clothes,
footwear, bags, accessories, toys, gadgets, and other types of
products can be found.

The owner of this company has a very inspiring story, considering that he was born
to a poor family in China. Many entrepreneurs were inspired by this man and, until
now, most entrepreneurs know him.

His family originally had a sari-sari store, but it was burnt down and was looted in the
midst of chaos before the war ends. Henry Sy stayed in the country to start a new
business while his father headed back to China. He didn’t lost hope despite the pain
and hardship brought by the war.

Thus, the story of Henry Sy could inspire us to pursue and reach our dreams.
Successful business starts from small and as stated, “there’s no shortcut to a business
success without determination and hard work.”
Consider the following problem:

Example Problem no.1

Rodrigo is engaged in a buy-and-sell

business of perfumes. He bought 10 boxes of
perfumes. Each box costs Php12,000 and contains a
dozen of perfume bottles. He is planning to sell one
perfume bottle at Php1,500. What is his expected
profit on 10 boxes of perfumes?

The ultimate goal of any business whether a

retail or wholesale is to earn a profit. Getting
the difference between the amount of money
earned from selling 10 boxes containing a
https://englishhelponline.me/ dozen of perfume bottles and the cost of these
2011/06/13/the-difference-between-
10 boxes gives the profit.
words-cologne-and- perfume/
Solution:
Given of 10 boxes of perfumes contain a dozen
of bottles
120 bottles bought by Rodrigo
Cost of each box = Php12,000
Selling Price of each perfume = Php1,500

To solve the problem, compute first the cost of 10 x 12 = 120 bottles.

Since each box costs Php12,000 and Rodrigo bought 10 boxes, we get
Cost =Php12,000(10) = Php 12,000.

Rodrigo can expect that the net sales he will get upon selling 10 boxes consisting of 120 bottles is
Net Sales = P1,500 (120) = Php 180,000.

Thus, he has
Profit = Net Sales – Cost
= Php180,000 – Php120,000
Profit = Php 60,000

Example Problem no.2

Anna bought one dozen smartphones for Php200,000

SALE
with a discount of 5%. She sold half dozen at a price of Php18,000 per unit. However, a
new model of smartphone became available in the market, so she sold the remaining half
dozen at Php 12,000 each unit. What was her profit or loss?
Solution:
Cost of 12 dozens of smartphones
 Php200,000 – 0.05 (200,000) = Php 190,000
Net Sales:
 For 6 smartphones at a price of Php18,000 per piece
Php18,000 (6) = Php 108,000
 For remaining phones at a price of Php12,000 per piece
Php12,000 (6) = Php 72,000
Total Net Sales = Php 108,000 + 72,000 = Php 180,000
Since Net Sales is less than Cost, it is a loss.
Loss = Cost – Net Sales
= Php190,000 – 180,000
= Php 10,000

Example Problem no.3

A watch store owner decided to offer a 20% discount for a particular

brand of watch that sells at Php35,000. By doing so, his average sales
increased from 5 watches to 12 watches a day. If he bought one
watch at a price of Php22,000 from the supplier, by how much was
the daily profit increased or decreased by offering such discount on
the watch?
Solution:
We compute for the daily profit before and after the discount was offered.
Without the discount,
Profit per watch = Php 35,000 – 22,000
=Php 13,000
Profit for selling 5 watches = 13,000 (5)
= Php65,000
With 20% discount,
New Selling price = Php35,000 – 0.2 (35,000) = Php28,000
 Profit per watch = 28,000 – 22,000 = Php6,000
Profit for 12 watches = 6000 (12) = Php72,000
Increase in daily profit = 72,000 – 65,000 = Php7,000

Example Problem no.4

Jay-R bought two digital cameras at Php15,490 each. He sold one

of the cameras to his friend at Php13,500, while the other one was
sold to his neighbour at Php16,200. How much is Jay-R’s profit or
loss?

Solution:
Cost of 2 digital cameras = (15,490)(2) = Php 30,980
Net Sales = 13,500 + 16,200 = Php29,700
Since, the cost is greater than the net sales then it is a loss.
Loss = Cost – Net Sales
= 30,980 – 29700
Loss = Php 1,280

What is it?

The difference between what a merchant invests into business and what he receives in
return is called profit. To compute profit, we use

Profit = Net Sales – Cost

Where Net Sales is the amount of money received from selling goods, and Cost is the
amount paid for the goods.

However, there are cases in which the Net Sales of goods is less than its cost, such
difference is called loss. We can express loss mathematically as
 Loss = Cost – Net Sales

In this case when Net Sales is equal to Cost, we call such situation as break -even.

Profit/Loss = Net Sales - Cost

When Nets Sales is greater than Cost the difference is Profit

And when the Net Sales is less than Cost the difference is Loss.

What’s More?

Activity 1: Do this!

Determine whether the statement shows a profit or loss situation.

Write P for Profit and L for Loss.

1. Ben bought a pen at Php10 and sold it for Php12
2. Martha bought a scientific calculator at Php2,000. When a new and upgraded model
was released after two months, she sold her scientific calculator for Php1,200 to buy a
new one.
3. A banana cue vendor gains Php100 for selling it at Php10 per stick.
4. The cost of 10 pieces personalized calendar is Php850. It was sold for Php150 each
5. Joy bought a 16GB memory card at Php600 and decided to sell it to her sister for
Php650.
6. Phil Andrew bought cellphone at Php9,000 and additional accessories of the gadget
for Php500 and sold it for Php 9,200.
7. Patrick bought helmet at Php 3,500 with a delivery charge of Php 300 in an online
shop and sold it in his friend at Php 4,000.
8. The cost of 4 sets bed sheets, pillowcase and blanket is P1320. It was sold for P350
per set.
9. Puto -pao sold by 11 pieces per tub at Php100 with a cost of Php 10 each.
10. Andrei bought bicycle at Php6,200 and sold it to his classmate at P7000.
Activity 2: Try this!

Evaluate the following given the following values:

1. The price of pair of socks is Php 200. How much is the cost of 8 pairs of socks?
2. The Revenue R (in pesos) of a chocolate company is given by R = 30x, where x is the
number of chocolate boxes. How much is the revenue if there are 25 boxes of chocolate?
3. The fixed cost of an industry is Php5,000 which is independent on the number of units.
How much is the fixed cost of 900 units?
4. If the cost of producing x units of a product is given by C = 10x, what is the cost of
producing 5 units?
5. The annual earning (in million pesos) of a calculator manufacturer is given by P = 50x -
10, how much is the profit of selling 5 calculators?
6. The selling price of sand per cubic meter is Php75, how much is the price of the sand that
has a height, width and length of 2, 2 and 3 meter?
7. The selling price of salted eggs in a tray is Php330. How much is the price per piece of an
egg, if a tray has 30 salted eggs?
8. If a ream of bond paper is 500 pcs, how much is the price of each sheet if one ream cost
is P330?
9. If the cost of one box of milk that weighs 1,450grams is Php800. How much is the cost of
3 boxes?
10. The price of diesel oil per liter is Php45. If Samantha consumed 5 liters in her travel and
needs 3 liters to fill the tank of her car, how much does she need to pay for the diesel?

Activity 3
Michelle went to Baguio and bought 20 jars of strawberry jam for Php 3,500 with
15% discount. When she got back to Manila, she sold 10 of the jars for a total of
Php 1,800, and the rest at Php 185 each.
Answer the following questions:
1. How much is the cost of jars of strawberry jam?
2. How much is the Net Sales of the first 10 jars of strawberry jam?
3. How much is the Net Sales of the remaining 10 jars?
4. How much is the Total Net sales of the 20 jars?
5. How much is the profit or Loss did Michelle get?
 Show your solutions

What I have learned?

Activity 4: Think of this!

A. After learning concepts of this module, explain briefly the following questions:

1. What is the difference between profit and loss?

2. How is profit obtained in a given situations?

3. How to avoid loss in a given situations?

B. List down at least 5 skills you have learned in this module and explain its usefulness to
real-life situations.
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What I can do?

Solve the following problems. Show your solutions.

1. Greg bought a laptop for Php28,000 and spent Php2,500 on its spares.
He later sold it for Php25,000. How much is Greg’s loss?
2. Alden went to Bicol and bought 25 packs of pili nuts for Php875 with 10%
discount. When he got back to Manila, he sold 15 packs for Php675, and the rest at
Php40 each. How much profit did Alden gain?
3. Arman sold a watch to his friend at a loss of 5%. If his friend paid Php650 for it, find
the original cost of the watch.
4. A mobile phone was sold for Php4,500. Find the cost price of the mobile phone if the
profit is 20%.
 5. A shopkeeper buys digital camera at P5,400 each. Due to price fall in the market, he
was forced to sell them at a loss of 15%. Find the selling price of each digital camera.
6. Alfred buys an old scooter for Php14,700 and spends Php1,800 on its repairs. If he
sells the scooters for Php 15,000, what is his percent gain or percent loss?
7. Find the percent gain or percent loss when a car bought for Php925,000 is sold for
Php850,000.
8. Adrian bought 50 dozen of pencils at Php60 a dozen. Out of these, 20 pencils were
broken. He sold the remaining pencils at Php 7 each. Find the percent gain or percent
loss.
9. Martin bought 18 chairs at Php350 each. He sold 12 of them at Php 450 each, and the
remaining chairs at Php 300 each. Calculate his percent gain or percent loss.
10. A dealer losses Php 5,000 when he sells a furniture at a loss of 10%. How much is the
selling price of the furniture?

Assessment:

A. True or False. Write the word True if the given statement is correct and False if not.

1. The ultimate goal of any business whether a retail or wholesale is to earn a profit.

2. The amount of money received from selling goods is Net Sales.

3. The amount paid for the goods is expenses.

4. Break-even is a situation wherein the Net sales is equal to Cost.

5. The difference of Net Sales and Cost is a profit.

6. The difference of Cost and Net Sales is Loss.

7. If the Cost is greater than Net Sales then the result is profit.

8. If the Net Sales is less than Cost then the result is profit.

9. Profit and Loss statement is also known as Income Statement.

10. When the Net Sales of goods is less than its cost, such difference is called loss.

B. MULTIPLE CHOICE. Read each item carefully and answer the following questions:

1. A financial gain, especially the difference between the amount earned and the amount
spent in buying, operating, or producing something.
A. Cost C. Profit
B. Expenses D. Sales

2. The exchange of a commodity for money; the action of selling something.

A. Cost C. Profit
B. Expenses D. Sales

3. An amount that has to be paid or spent to buy or obtain something.

A. Cost C. Profit
B. Expenses D. Sales

4. The difference of Net Sales and Cost, when the Net Sales is less than its Cost.
A. Break-even C. Profit
B. Loss D. Salary

5. Nathaniel bought an aircon for Php35,000 and spent Php1,500 on its installation. He
later sold it for Php37,000. How much is Nathaniel’s profit or loss?
A. Break-even of Php500 C. Gain of Php500
B. Loss of Php500 D. Profit of Php500

For items 6-8. Pedro went to Daraetan and bought 5 sacks of cassava for Php600 with 10%
discount. When he got back to Tanay town proper, he sold 2 sacks for Php350 and the rest
at Php120 each.

6. How much is the cost per sack of cassava?

A. Php108 C. Php540
B. Php 120 D. Php600

7. How much is the Total Sales of cassava?

A. Php 700 C. Php732
B. Php710 D. Php 820

8. How much profit did Pedro gain?

A. Php110 C. Php192
B. Php 170 D. Php260

9. Malou sold a bracelet to her friend at a loss of 5%. If his friend paid Php800 for it. What is
the original cost of the bracelet?
A. Php760 C. Php805
B. Php 800 D. Php840

10. A mobile phone was sold for Php13,500. Find the cost price of the mobile phone if the
profit is 20%.
A. Php2,700 C. Php12,960
B. Php10,800 D. Php16,200

In all toil there is profit, but mere talk tends only to poverty.
Proverbs 14:23
Reflections:

Write in your journal your own learning, realization and commitments by completing the
phrase:

My journey through this lesson enabled me to learn:

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_____________________________________________________________________
_____________________________________________________________________

It made me realize that:

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
It resolved that:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

I therefore commit to:

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

References:

Business Math by Vibal Group, Inc and Brian Roy C. Lopez, Leah C. Martin-Lundag, and Keneth Adrain P. Dagal ,
2016

https://managementevents.com/news/the-impact-of-covid-19-on-businesses/
Answer Key: 3. A
4. B
5. C OR B
Activity 1
6. A
1. P
7. B
2. L
8. B
3. P
9. D
4. P
10. B
5. P
6. L
7. P
8. P
9. L
10. P

Activity 2
1. 200 (8) – Php1,600
2. R = 30(25) = Php750
3. C = Php 5,000
4. C= 10(5) =Php 50
5. P = 50 (5) -10 = Php240 million
6. Php 900
7. Php 11
8. Php 0.66
9. Php 2400
10. Php 135

Activity 3
1. Php2,975
2. Php1,800
3. Pho1,850
4. Php 3.650
5. Profit of Php675

Activity 4 Think of this!

A. Answers may vary
B. Answers may vary

Assessment:
A. True or False
1. True
2. True
3. False
4. True
5. True
6. True
7. False
8. False
9. True
10. True

Assessment
B. Multiple Choice
1. C
2. D