PRENZA NATIONAL HIGH SCHOOL MARKUP (Halaga na Itinaas)

Prenza I, Marilao, Bulacan - the difference between the selling price and the cost price.
SENIOR HIGH SCHOOL DEPARTMEN
Business Mathematics Formula:
DIFFERENTIATING MARKUP, MARKDOWN Markup amount = Selling Price – Cost price
AND MARK-ON or
Markup amount = Markup % x Cost Price

TERMS TO REMEMBER
Ex:
 COST PRICE 1. A stuff toy which cost PHP 860.00 is being sold at PHP 1,200.00. Determine the
- the original price of an item. Markup.
- the price that has to be spent to produce goods or services Sol’n :
before any profit is added.
 OPERATING COST Cost Price = PHP 860.00
- ongoing expenses incurred from the normal day-to-day of Selling Price = PHP 1,200.00
running a business. Markup = ?
- the price (per unit) incurred relative to the production and sale
of a commodity. Ex. Rent, salaries of manpower and other Markup amount = Selling Price – Cost price
incidental expenses. Markup amount = PHP 1,200 - PHP 860.00
 SELLING PRICE
- The amount at which the product or service is to be sold per MU = PHP 340.00
unit.
Therefore, the markup amount of the stuff toy is
: to compute the Selling Price PHP 340.00

S = C + E + P 2. Mr Adrian Alcantara purchased a set of drawing materials and sells it to his

brother at PHP 950.00 with the Markup of PHP 250.00. What is the Original cost of
Where: S = selling price the drawing materials?
C = cost price Sol’n :
E = operating expenses
P = profit Cost Price = ?
Selling Price = PHP 950.00
 PROFIT Markup = PHP 250.00
- money earned after the cost price and the operating costs are
accounted for after the sale of a commodity. Cost Price = Selling Price – Markup
 BREAK-EVEN (BALIK PUHUNAN) C = PHP 950 – PHP 250
- point wherein the income of the business equals the
expenditures, “no profit nor loss”. C = PHP 700
 COST OF GOODS SOLD
- the sum of all direct costs associated with making a product like Therefore, the original cost of the drawing materials is
raw material or labor. PHP 700.00
Formula:
COGS = (Beginning Inventory + Purchases) – Ending Inventory 3. How much must be the selling price of a Laptop with a cost price of PHP
30,295.00 if the desired Markup percentage is 16%?
 GROSS Sol’n :
- refers to the whole of something Cost price = PHP 30,295
 NET Markup % = 16%
- refers to a part of a whole following some sort of deduction. Selling Price = ?
 Formula : ( find first the Markup Amount ) MARK-ON
- increase of the price of the product usually during special
Markup amount = Markup % x Cost Price occasions and peak seasons.
MU = (0.16) (30,295) - Temporary markup on a certain product due to demand.
-
MU = PHP 4,847.20 Formula:
Mark-on amount = New Selling Price – Original Selling price
Formula : ( find the value of Selling Price using the value of Or
Markup ) Mark-on amount = Mark-on % x Original Selling price
Selling Price = Markup + Cost Price
S = PHP 4,847.20 + PHP 30,295
Ex:
S = PHP 35,142.20 1. Mr. Cameron Macaso purchased a box of ham for PHP 500.00 and put a
markup of PHP 150.00. As the Christmas Eve comes, the demand for ham
Therefore, the selling price of the Laptop is increased giving him the opportunity to raise the price to PHP 860.00 per box.
PHP 35,142.20 What is the Mark-on?
Sol’n :
4. A BTS Light stick which costs PHP 1,730 is being sold at PHP 2,125. What is the Cost price ( C ) = PHP 500.00
rate of mark-up based on cost? Markup ( MU ) = PHP 150.00
Sol’n : Original Selling Price = C + MU
Cost Price = PHP 1,730 ( OSP ) = 500 + 150
Selling Price = PHP 2,125 = PHP 600.00
Markup % = ? New Selling Price ( NSP ) = PHP 860.00
Formula: Mark-on ( MO ) = ?
Markup amount = Selling Price – Cost price
MU = PHP 2,125 - PHP 1,730 Formula :
MU = PHP 395 Mark-on amount = New Selling Price – Original Selling price
MO = PHP 860 - PHP 600
; to get the Markup rate, divide the computed Markup price by the Cost
price then multiply by 100%. MO = PHP 260.00
Formula:
𝑴𝒂𝒓𝒌𝒖𝒑 𝒂𝒎𝒐𝒖𝒏𝒕 Therefore, the mark-on of every box of ham is
Markup % = 100% ( 𝑪𝒐𝒔𝒕 𝒑𝒓𝒊𝒄𝒆
) PHP 260.00

2. Electric Fan in the appliances store is currently being sold for PHP 750.00.
𝑃𝐻𝑃 395 Because it’s summer the demand for electric fan increased. So the store decided to
Markup % = 100% (𝑃𝐻𝑃 1,730) apply a mark-on percentage of 22%. Find the new selling price.
Sol’n :
MU % = (100%) ( 0.23) Original Selling Price = PHP 750.00
Mark-on % = 22%
MU % = 23 %
Formula: ( find first the Mark-on amount )
Therefore, The BTS Light stick was marked up by 23% based on
the cost price. Mark-on amount = Mark-on % x Original Selling price
MO = (0.22) (PHP 750)
MO = PHP 165.00
MARKUP PERCENTAGE/RATE
- is a percentage of the cost price that the company wanted to Formula: ( find the value of Selling Price using the value
add to determine the selling price of the product. of Markup )
 Therefore, the selling price of each rose during All Saint’s Day at
Mark-on amount = New Selling Price – Original Selling price this flower shop is PHP 86.25
PHP 165 = NSP - PHP 750
165 + 750 = NSP  Addition Property of Equality MARKDOWN (Halaga na Ibinaba)
- Define as a reduction in the selling price of the product.
PHP 915.00 = NSP It happens when:
the mall decides to sell their items at cut down prices to clear their
Therefore, the new selling price of the electric fan is warehouse collection.
PHP 915.00 the item is a perishable item and it is best to dispose of it
sooner than simply throw it away.
3. St. Paul Flower Shop imposes a 25% mark-up on flowers delivered to them for the item has become dirty or worn out, or possibly out of style
sale. During All Saint’s Day, an additional mark-on of 15% of the regular selling competition forces the marking down of an item to drive competitors out
price is added. Determine the unit price of 200 roses worth PHP 12,000 delivered of business.
to St. Paul 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? Formula:
Sol’n: Markdown amount = Original Selling Price – New Selling price
: identify first the unit price of the rose. or
𝑇𝑜𝑡𝑎𝑙 𝑝𝑟𝑖𝑐𝑒 Markdown amount = Markdown % x Original Selling price
Unit Price =
𝑁𝑜. 𝑜𝑓 𝐼𝑡𝑒𝑚𝑠
Ex:
12,000
UP = 1. A jacket was originally sold at PHP 450.00. Due to lack of demand of the
200 product, Aling Ernalyn a store owner decided to reduce the selling price to PHP
375.00 to reach the break-even point. What is the Markdown?
UP = PHP 60.00  or original price Sol’n:
Original Price = PHP 450.00
: identify the Markup amount. New Price = PHP 375.00
MU = MU% x UP Markdown = ?

MU = (0.25) (60) Formula:

MU = PHP 15.00 Markdown amount = Original Selling Price – New Selling price
MD = PHP 450.00 - PHP 375.00
: identify the selling price.
SP = MU + UP MD = PHP 75.00

SP = PHP 15.00 + PHP 60.00 2. During the MidYear Sale, a brand of Television is regularly priced at PHP 14,600
SP = PHP 75.00 was sold at 45% discount.
a. What was the amount of the mark-down?
: Since the flowers are “in demand” during All Saint’s Day, a 15% b. How much is the sale price?
Mark-on is going to be applied. So we’re going to get the 15% of the selling price of Sol’n:
PHP 75.00 a. Original Price = PHP 14,600
; identify the Mark-on Markdown % = 45%
Mark-on amount = Mark-on % x Original Selling price Markdown = ?
MO = (0.15) (PHP 75.00) Markdown amount = Markdown % x Original Selling price
MO = PHP 11.25 MD = (0.45) (PHP 14,600)

; lastly, compute for selling price per unit during peak season. MD = PHP 6,570.00\
Selling Price = Mark-on + Original Selling Price
SP = PHP 11.25 + PHP 75.00 b. Original Price = PHP 14,600
SP = PHP 86.25 Markdown = PHP 6,570
 New Price (sale price) = ? 3. What is the markdown rate of those who do not have a loyalty card?
Markdown amount = Original Selling Price – New Selling price a. 5% b. 10% c. 12% d. 15%
6,570 = 14,600 - NP 4. How much is the markdown of loyal customers?
6,570 – 14,600 = - NP a. 2,250 b. 3,150 c. 5,400 d. 6,000
- 8030 = - NP  divide both side by (-1) to 5. How much is the markdown of those who do not have a loyalty card?
cancel negative sign a. 2,250 b. 3,150 c. 5,400 d. 6,000
6. If Juan’s mother have a loyalty card what is the sale price?
NP = PHP 8030.00 a. 39,600 b. 42,750 c. 45,000 d. 47,000
7. If Juan’s mother does not have a loyalty card what is the sale price?
a. 39,600 b. 42,750 c. 45,000 d. 47,000
Quiz 8. How much is the difference on savings of those who have a loyalty card from
Test I those who do not?
A. Directions: Identify whether the statement is a Markup (MU), Markdown (MD) or a. 2,250 b. 3,150 c. 5,400 d. 6,000
Mark-on (MO). Underline your answer. Juan’s mother is doing “pasabuy” to get an additional
1. It accounts for the cost of raw materials necessary to produce the item being income, she imposes 8% markup rate for the total price of the items. Their
produced for sale. neighbor asked her to “pasabuy” the laptop.
2. It can be considered during occasions like All Saint’s day when the demand for 9. How much is the markup?
flowers is expected to be high. a. 2,400 b. 2,759 c. 2,999 d. 3,168
3. It can be option for business owners when there is a calamity 10.How much will her neighbour pay her if she will sell the laptop with
4. It can be applied when there is a strong business competition. the loyalty card discount?
5. Difference between the selling price and the cost price. a. 42,000 b. 42,359 c. 42,599 d.42,768

B. Direction: Find the values of the missing variables which are defined below: B. Direction: Read and analyze each situation. Answer what is being asked.
S is the selling price ; P is the profit 1. During a holiday sale, a rice cooker was sold for P575. This price was obtained
C is the cost price ; MU is the markup when a 35% discount was applied on the original price. What was the original
E is the operating expenses price?
2. A bookstore decides to sell a book at a price that is 22% higher than its original
1.S = 300 3. MU = 5600 5. E = 1.6% of 65 cost of P150. How much is the markup?
E = 50 C = 3000 P = 12 3. A computer software retailer charges a markup rate of 35%. Find the selling
C = 150 MU% = ? MU= ? price of a computer game that the retailer acquired for P1,750.
P=? 4. A bicycle spare parts shop pays its supplier P450 for a bicycle wheel, and then
sells it to a biker for P545. What is the markup rate?
2. S = 850 4. MU = 33 5. A movie ticket that originally costs P350 is marked 15% off.
C = 560 C = 95 a) How much is the discount?
MU = ? S=? b) How much is the selling price?

Test II
A. Direction: Read and analyze the situation. Answer what is being asked.
The blended learning is implemented to prevent the learners from going to have a
face-to-face interaction with their teachers and classmates in a bid to avoid getting
or spreading the Covid-19 disease. In order to do so, most parents knew that they Prepared by: Sir Paul
needed a gadget like laptop so their children will be able to have an easy access to
their learning materials. With this situation, Juan’s mother went to a shop to
purchase a laptop. Luckily, there was a sale. From PHP 45,000 a discount of 12%
is being offered to those who have a loyalty card, otherwise 5% is the discount.
1. How much is the selling price?
a. 39,600 b. 42,750 c. 45,000 d. 47,000
2. What is the markdown rate of the loyal customers?
a. 5% b. 10% c. 12% d. 15%