SHS

Business Mathematics
Quarter 1,Week 8-Module 14
Solve Problems Involving Buying
and Selling of Products -
ABM_BM11BS-Ij-9

1
Business Mathematics – SHS
Quarter 1, Week 8-Module 14: Solve Problems Involving Buying and Selling of
Products

Republic Act 8293, section 176 states that: No copyright shall subsist in any work of
the Government of the Philippines. However, prior approval of the government agency or office
wherein the work is created shall be necessary for exploitation of such work for profit. Such
agency or office may, among other things, impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this book are owned by their respective copyright holders. Every
effort has been exerted to locate and seek permission to use these materials from their
respective copyright owners. The publisher and authors do not represent nor claim ownership
over them.

Regional Director: Gilbert T. Sadsad

Assistant Regional Director: Jessie L. Amin

Development Team of the Module

Writer: MARIA ASUNCION T. BRIZUELA, ABM Teacher ,Tabaco NHS
Editors: NERISSA A. MORTEGA, HT III, San Lorenzo NHS
JULMA B. CARGULLO, MT, TNHS
HILDA J. CARLET, MT, TNHS
Language Editors: CHERRY BASILLA, TNHS
DESIREE CANICULA, TNHS
Reviewers: DIOLETA B. BORAIS, EPS, Tabaco City
JINKY VILLAREAL, EPS, Iriga City
JONJON MONTER, Principal, Sagrada HS, Iriga City
LOYD BOTOR, EPS, RO V
Layout Artist: ROWENA B. BENOYO, San Lorenzo NHS

2
 Business Mathematics – SHS
Quarter 1, Week 8-Module 14
Solve Problems Involving Buying and Selling of Products

I. Introduction

This is an application of your previous lessons designed to

enhance your analytical as well as problem solving skills. In this
module, you will be analyzing and solving various problems
involving the buying and selling of products.

II. Objective:
At the end of this module, you should be able to
• solve problems involving buying and selling of products.

3
III. Vocabulary
• Cost Price – the price that a company or store has to pay for the
goods it is going to sell. It is also the price that has to
be spent to produce goods or services before any profit is
added. It is computed on a per unit basis.
• Selling Price – the price at which the commodity is sold per unit.
• Profit –money earned after the cost price and the operating costs are
accounted for after the sale of a commodity.
• Mark-Up–the difference between the selling price and the cost. Price
sometimes referred to as MARGIN or GROSS PROFIT.
• Mark-Down–the difference between the regular selling price and the
sale price.

IV. Pre-Test:

Test your understanding!

1. Aling Maria would like to sell hair accessories she purchased from
the factory for P10.00 each. If the operating cost is set at 30% of the
cost and she would like to have a 20% profit on the cost of each
item.
a. Determine the mark-up price for each hair accessory.
b. Help Aling Maria determine the selling price for each hair
accessory.

V. Learning Activities:
Lesson 1
Solving Problems Involving Buying and Selling of Products

Let’s begin!

Learning Situation 1:

Janine buys a girl’s cologne for P35. The rate of mark-up based
on cost is 25%. Find the selling price and the mark-up.

Solution:
MU = 0.25 x 35
= P8.75
S = 35 + 8.75
= P43.75
The selling price of a girl’s cologne is P43.75 which includes a mark-up of
P8.75.

4
 Learning Situation 2:
Find the cost and mark-up of one ream of white long bond paper
being sold forP125 with a 20% mark-up based on selling price.

Solution:
MU = 0.20 x S C = S – MU
= 0.20 x 125 = 125 – 25.00
=P25.00 = P100.00

The cost price of one ream of white long bond paper is P100.00
and the mark-up is P25.00.

Let’s have one more

example.

Learning Situation 3:

Mang Gorio, a meat vendor in Barangay San Isidro supplies meat not
only in his barangay but also in neighboring barangays. He decides to
increase the price of meat by P5 per kilo. If the cost of pork is P180 per kilo
with a 25% mark-up, what is its new selling price with the additional increase
of P5? By how much is the rate of mark-up based on cost increased by adding
P5 to the regular selling price of the pork?

Solution:
MU = 0.25 x 180
= P45.00
Selling price before the increase:
S = C + MU
= 180 + 45.00
= P225.00
Selling price after increase:
PS = P225.00 + P5.00
= P230.00
Combined Rate of Mark-up and Mark-on
= 45 + 5 = 0.2777 = 27.78%
180
27.78% - 25% = 2.78%

The mark-up is increased by 2.78% by the additional mark-on of

P5.00 by Mang Gorio.

5
VI.Practice Exercises

Practice Task 1:

A polo costs Mr.Moreno P150 and he decides to mark it up by

20% of the selling price. Find the selling price and mark-up for
the said polo.

Practice Task 2:

During a Grand Sale, a Nike sneakers regularly priced at

P5,000 was sold at 55% discount. The cost of the Nike
sneaker is P3, 540 and expenses are 12%of the regular selling
price.
a. How much is the selling price of Nike sneaker?
b. What was the amount of the mark-down?
c. What was the rate of mark-down?

Practice Task 3:

Hanz was able to buy a piece of G-watch regularly priced at

P5,600 for onlyP2,500.
a. What was the amount of the markdown?
b. What was the rate of the mark-down?

6
 Post- Test

1. Naga Supermart paid P12,000 for a set of dishes. Expenses are 10%
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?

VIII. Assignment
1. Appliance Store brings a mark-up of P3,450 in
selling TV sets. If its items are sold at a mark-up
of 40% of the selling price,
a. What is the regular selling price of the TV
set?
b. What was the cost of the TV set?
c. What is the rate of mark-up based on cost
for the TV set?
d. If overhead expenses are at 27% of the cost,
what is the break-even price of the TV set?
e. If the TV set is sold at P7,500, how much
profit or loss is incurred by the Appliance
Store?

7
Key to Correction
Pre-Test
a. MU = E + P
= 0.30 x 10 + 0.20 x 10
=3+2
= P5.00
The mark-up price for each hair accessory is P5.00.
b. S = C + MU
= 10 + P5.00
= P15.00
Aling Maria should sell each hair accessory at P15.00.
Practice Task 1
100% - 20% = 80% (Cost of polo is 80% of the selling price.)
C = 0.80S
150 = 0.80S
S = 150/.80
= P187.50
Mr. Moreno sells the polo at P187.50.
MU = S – C
MU = 187.50 – 150
MU = P37.50
The mark-up on the polo is P37.50

Practice Task 2
a. 100% - 55% = 45% (the sale price is 45% of the selling price.)
SP = 0.45 x S
= 0.45 x 5,000
= P2,250
The sale price of the Nike sneaker is P2,250

b. CTOTAL = C + E
= 3,540 + 0.12 x 5,000
= P4,140

P = SP – CTOTAL
= 2,250 – 4,140
= P1,890 (loss)
The loss made on the sale was P1,890.

C. Markdown rate = 1,890/ 2,250

= 84%

8
Practice Task 3
MD = S – SP
= 5,600 – 2,500
= P3,100

MD% = MD x 100%
S
= 3,100 x 100%
5,600
= 55%
The amount of mark-down is P3,100 which is equivalent to a
55% mark-down.

Post- Test
a. S = C + E + P
S = C + 0.10xS + 0.15xS
S – 0.10xS – 0.15xS = 12,000
0.75xS = 12,000
S= 12,000 = P16,000.00
0.75
The regular selling price of the set of dishes is P16,000.00.

b. 100% - 30% = 70% (The sale price is 70% of the selling price.)
SP = 0.70 x S
= 0.70 x P16,000.00
= P11,200.00.
The sale price of the set of dishes was P11,200.00.

c. CTotal = C + E
= 12,000 + 0.10 x P16,000.00
= P13,600.00
P = SP – Ctotal
= 11,200.00 - 13,600.00
= -P2,400.00 (Loss)
The Naga Mall incurred a loss of P2,400.00 in the sale of the set of
dishes.

9
 Assignment

1. A. Selling Price (100%) = 8,625.00

Cost (60%) = 5,175.00
Mark-up (40%) = 3,450.00

B. Cost = 8,625.00 (3,450.00/ 40%)

= 8,625.00 x 60%
= 5,175.00
C. Mark-up based on Cost = 3,450.00/5,175.00
= 66.67%
D. Overhead = 5,175.00 (27%)
= 1397.25

TC = R
5,175 + 1397.25 = R
Break-even Price = 6,572.25

E. Selling Price (100%) = 7,500.00

Cost (60% ) = 4,500.00
Profit (40%) = 3,000.00

References:
All contents of this module are credited to the rightful owners.
• Business Math Textbook (Government Property)Copyright @ 2016 by Vibal
Group, Inc and Brian Roy C. Lopez, Leah C. Martin-Lundag, and Keneth
Adrian Dagal. Pages 72-77
• The Commission on Higher Education in collaboration with the Philippine
Normal University Teaching Guide for Senior High School K12 Business
Mathematics pages 67 -99

10