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I. OBJECTIVES:

Male
Female
Total
BUSINESS MATHEMATICS
LECTURE NOTES WEEK 1

20
GRADE 12 (ABM)

QUARTER 1

At the end of the lesson, the students will be able to:

a. Perform fundamental operations on fractions and decimals.

b. Express fractions to decimals and percent forms and vice versa.
c. Illustrate how decimals and fractions can be written in terms of percent.

II. LESSON PROPER

Consider a survey on favourite lunch meals of one hundred male and female
students. The results were tabulated as follow:

Rice Meals
28
20
48
Pasta
8
12
Sandwiches

Students who prefer pasta: 20 out of 100 =

Number of male students: 48 out of 100 =

Number of female students: 52 out of 100 =

The numbers
48
,
20 23
,
100 100 100

Numerator
, and
52
100
10
13
23

Students who prefer sandwiches: 23 out of 100 =

Students who prefer biscuits: 9 out of 100 =

20
100

9
100

48
100
,

, and

52
100
.
100

23
100
Biscuits

, are called fractions.

2
5
2
7
9

Denominator
Total
48
52
100

From the table above, we can see that 48 out of 100 students prefer rice meals
pasta, 23 out of 100 prefer sandwiches, and 9 out of 100 prefer biscuits. On the other hand,
we can also see that, out of 100 students, there are 48 male and 52 female students. We
can conveniently write these numerical representations as follows:

Students who prefer rice meals: 48 out of 100 = =

48
,
When a whole quantity is divided into parts, these parts are called fractions. A fraction is written
a
if=n the form , where a and b are whole numbers but b cannot be zero. The number on top, a,
b
2
The fraction means the unit is divided into five parts and that two of the five parts are taken.
5
2
Moreover, also means 2 ÷5 .
5

Example 1

23
In a class of 40 students, 23 are girls. We can name the part of the class that are girls as .
40
There are two categories of fraction:

1. If the numerator is less than the denominator, it is called a proper fraction. It means that the
fraction names a number less than 1 unit.

2. If the numerator is greater than or equal to the denominator, it is called an improper fraction. It
means that the fraction names a number greater than or equal to 1 unit.

But an improper fraction can be transformed to a mixed number. A mixed number is the sum
of a whole number and a proper fraction. Simply divide the numerator by the denominator. If there is a
nonzero remainder, write the remainder over the denominator.

42
Example 2. Change to a mixed or whole number.
3

42
Solution: 42 ÷ 3=14 =14
3

53
Example 3. Change to a mixed or whole number.
4

53 1
Solution: 53 ÷ 4=13 with remainder 1 =13
4 4
To change a mixed number to an improper fraction, multiply the denominator by the whole
number and add the numerator. Write the sum over the denominator to form the improper fraction.

2
Example 4. Change 4 to an improper fraction.
3

2 14
Solution:4 ×3+2=14, 4 =
3 3
Also, if the denominator of a fraction is one, it is equal to the numerator.

3
Example 5. Change 2 to an improper fraction.
8

3 19
Solution: . 2 ×8+3=19 2 =
8 8

25 1
Example 6. Which of the following fractions is bigger, or 3 ?
8 8
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Solution:3 ×8+ 1=25 3

Solution:

2 5
3 ×1+2=51 =
3 3

1 5
2 ×2+1=5 2 =

Solution:
2 2

1 7
3 ×2+1=7 3 = .
2 2

1
Therefore, 2 is equal to
2
1 25

5
2
=
8 8
None of them is bigger because they are equal.

Example 7. Which among 1

.
2 1
3 2
1
2
5
, 2 , and 3 is equal to ?
2

Let us change the given mixedd fractions to improper fractions to see which is equal to

Example 8. Dexter saved ninety five 25-centavo coins for Pondo ng Pinoy. How much in pesos did
he save?

Solution:
95
4
3
=23 = ₱ 23.75.
4
Since four 25-centavo coins is ₱ 1.00 , then 95 ÷ 4=23 with remainder 3, and so

Example 9. A piece of wood measures 12 feet. If a carpenter needs to cut it to have 5 pieces of
wood, how long will each piece be in inches?

12 ×12=144 inches. To know how

Since there are 12 inches in one foot, 12 feet is

long will eah piece be, we have 144 ÷ 5=28 with remainder 4. Thus,

of each piece of wood.

144
5
4
=28 inches is the length
5

Example 10. A cake was served at the table. Danica ate 1 slice of cake, while Luigi ate 2 slices. If
there were initially 4 equal slices of cake, what fraction of the cake remained?

Solution: Since the total number of slices is 4, it would be denominator. Subtract the slices of
cake eaten by Danica and Luigi from the total number of slices, thus,

Therefore, the remaining part of the cake is

1
4
.
4− (2+1 )=4−3=1.

A required measurement which is the result of adding, subtracting, multiplying, or dividing

fractions is not always expressed as simple as possible. Measurements can be read with ease when
the fraction is given in lowest terms.
5
2
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3
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b.

c.

d.

e.

f.
A fraction can be simplified if the numerator and denominator can be divided by the same
number other than 1. When the numerator and the denominator have no other factor except 1 (that is,
cannot be divided by the same number other than 1), the fraction is already in lowest terms.

Example 11. Determine whether the given fractions are equivalent.

Solution:

a. =
a.

b.

c.
12 1
,
24 2

18 2
,
20 7

5 75
,
8 120

24 24 ÷ 12 2 2

Therefore,

18 18 ÷ 2 9 2

5
8
=
20 20 ÷ 2 10 7

Therefore,
12
24

18
20
and

20 20 ÷ 5 4 28 28 ÷ 7 4

Therefore,

35 35 ÷ 5 7 14
=

Therefore,
15
20

40

63
99
and

and

63 63÷ 9 7 24 24 ÷ 3 8
= = ; = =
99 99 ÷ 9 11 33 33 ÷3 11

and
1
2

= ; already in lowest terms.

2
and are not equivalent.
7

already in lowest terms;

Therefore,
5
8
and

15 15 ÷ 5 3 21 21÷ 7 3
= = ; = =
75
120

21
28

15

24
33
75
=
75 ÷ 15 5
=
120 120 ÷ 15 8

are equivalent.

are equivalent.

= ; already in lowest terms

40 40 ÷ 5 8 15

Therefore,
35 14
are not equivalent.
d.

e.

f.

are equivalent fractions.

are not equivalent.

15 21
,
20 28

35 14
,
40 15

63 24
,
99 33

Express each fraction in the pair in lowest terms. Once their lowest terms are equal, they are
equivalent.

12 12 ÷12 1 1
= ; already in lowest terms
Addition of Fractions

Add fractions only when they are like fractions. Like fractions have the same denominator.

Add the numerators and place the sum over the common denominator. Simplify the result
whenever necessary.

But if fractions are unlike, determine first the least common denominator (LCD). The LCD is
the least common denominator of the fractions.

Change each unlike fractions to an equivalent fraction with the LCD as a common
denominator. Add the resulting fractions as before.

Example 12. Find the following sum of fractions.

7 4 6 2
a. + d. +
15 15 7 5

9 2 1 7
b. + e. +
10 10 2 12

2 1 1 3
c. 3 + f. 3 +1
9 9 2 8

Solution:

7 4 11 6 2 30 14 44 9
a. + = d. + = + = =1
15 15 15 7 5 35 35 35 35

9 2 11 1 1 7 6 7 13 1
b. + = =1 e. + = + = =1
10 10 10 10 2 12 12 12 12 12

2 1 2+ 1 3 1 1 3 4 3 4+3 7
c. 3 + =2 =3 =3 f. 3 +1 =3 + 1 =4 =4
9 9 9 9 3 2 8 8 8 8 8
Example 13. Solve each of the following problem.

a. It took Juliana 6 hours on her first day, 5 hours the second day, and 3 hours the third day in typing
the term paper in Business Mathematics. How long did Juliana work, as a fraction of a 24-hour day?

5 2 1
b. Marie is to be given grams of a medication after breakfast, grams after lunch, and grams
7 7 7
before she goes to bed. How many grams of medication will she receive in a week?

Solution:

6 5 3 6 +5+3 14 7
a. + + = = = of a day
24 24 24 24 24 12

5 2 1 8 1 1 8
b. + + = =1 grams in a day, and in 1 week, 1 grams ×7 days ¿ ×7=8 grams in one
7 7 7 7 7 7 7
week.

Example 14.

1 1
Robert carries 5 kilograms of rice and 3 kilograms of fish. How many kilograms of item
4 3
did Robert carry in all?
 1 1 1 2 1+ 2 3
Solution: 5 +3 =5 + 3 =8 =8
4 3 4 4 2 4

3
Therefore, Robert carried 8 kilograms of item in all.
4
Subtraction of Fractions

In a similar manner, subtract fractions only when they are like fractions. Subtract the
numerators and place the different over the common denominators. Simplify the result whenever
necessary.

To subtract unlike fractions, find the LCD. Change each unlike fraction to an equivalent
fraction with the LCD as the common denominator. Subtract the resulting fractions as before.

Example 15 Find the difference of the following:

4 1 6
a. − d. 4−
5 5 7

11 7 7 1
b. − e. 6 −4
12 12 9 3

3 1 6
c. − f. 10−4
4 8 15
Solution:

4 1 1 3
a. − =4− =
5 5 5 5

11 7 7 4 4÷ 4 1
b. − =11− = = =
12 12 12 12 12 ÷ 4 3

3 1 6 1 6−1 5
c. − = − = =
4 8 8 8 8 8

6 7 6 7−6 1
d. 4− =3 − =3 =3
7 7 7 7 7

7 1 7 3 7−3 4
e. 6 −4 =6 −4 =2 =2
9 3 9 9 9 9

6 15 6 15−6 9 3
f. 10−4 =9 −4 =5 =5 =5
15 15 15 15 15 5
Example 16 Solve each of the following problem.

11 5
a. You have meter of a fabric. You need meter for a placement. Will you have enough
12 6
3
left for table napkins that will use meter?
4

7
b. Alvin cut four strips from a 4-inch piece of metal. Each strip has a width of inch. How
8
much metal was left after the cuts?

Solution:
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Example 17

measuring

Solution:

Example 18
5
4
a. Subtract

Compare

Since
1
12

1 9
5
6

Metal left: 4−3

from

3 9
and =
4 12

1 1

Mrs. De Mesa bought 6

We have 2

1
3
3
8
4
8
3
6 −4 =6 −4 =2
8
4

4−3
8
11 11 5 11−10 1

=2 .
, − =
12 12 6

1
8
1
3

+2 =2 + 2 =4
8 8 8

Then, we subtract it from 6

3

Therefore, Mrs. De Mesa used 2

Multiplication of Fractions
8
12
= meter
12

< , there will not be enough material for table napkins.

12 12

b. Total metal for the strips: 4 ×

= inch.
2 2

Cathy bought a ribbon that is 3

meters. How long is the other part?

1 5 13 5 8
3 − = − = =2meters
4 4 4 4 4
1
4

3
=4 .
8
7 7

1
8
1
= =3 inches
8 2 2

meters long. She needs to cut from it a piece

Therefore, the remaining part of the ribbon measures 2 meters.

menudo, and the rest for adobo. How many kilograms of meat did she use for adobo?

Solution: First, we add the kilograms of meat used for afritada and menudo.

1 1 2 1 2+1

to get the kilograms of meat used for adobo. We have

kg of meat for adobo.

1
kg of meat. She used 2 kg for afritada, 2 kg for
2 8

In multiplying fractions, multiply the numerators to find the numerator of the product. Multiply the
denominators too to find the denominator of the product. Then simplify the product if possible.

Example 19. Find the product of the following:

a.

b.
3 5
×
10 6

5 2
×
7 3
d.

e.
13 ×

3 6
2 ×
5 10
3
8
 4 2 5
c. ×5 f. 2 ×4
7 3 7
Solution:

3 5 15 15 ÷15 1
a. × = = =
10 6 60 60 ÷15 4

5 2 10
b. = =
7 3 21

4 4 5 20 6
c. ×5= × = =2
7 7 1 7 7

3 13 3 39 7
d. 13 × = × = =4
8 1 8 8 8

3 6 13 6 78 78 ÷ 2 39 14
e. 2 × = × = = = =1
5 10 5 10 50 50 ÷ 2 25 25

2 5 8 33 8 11 88 4
f. 2 ×4 = × = × = =12
3 7 3 7 1 7 7 7

3 1
Example 19 A cookie sheet is 12 inches long and 8 inches wide. What is the area of the
4 4
cookie sheet?

Solution: The area is length times width, that is,

3 1 51 33 51× 33 1683 3
12 × 8 = × = = =105 square inches.
4 4 4 4 4×4 16 16

3
Example 20 A piece of land, 7 hectares in area, is to be developed for a resort. According to the
8
1
plan, of the land is to be left as a wildlife preserve. How many hectares will this be?
4

1 3 1 59 59 27
Solution: ×7 = × = =1 hectares.
4 8 4 8 32 32

Example 21 There are 56 students in a class. Three-fourths of the students support the Philippine
1
Football team, of the remaining support the Philippine Rugby team, and the rest supports the
3
Philippine Basketball team. How many students support each team?

Solution: First, to find the number of students supporting the Philippine Football team, we have
3 56 3 168
56 × = × = =42.
4 1 4 4

Thus, 42 of the students supports the Philippine Football team.

To find the number of students supporting the Philippine Rugby team, we have to subtract first the
number of the Philippine Football team supporters from the total number of students. We have
56−42=14.This is the number of students who do not support the Football team.

1 14 1 14
So, 14 × = × = =7
3 1 3 2
Thus, there are 7 students who support the Philippine Rugby team.

Thus, there are 14−7=7 students who support the Philippine Basketball team.

Division of Fractions

In dividing the fractions, get the reciprocal (interchange the numerator and the denominator of the
divisor) and proceed to multiplication.

Example 22.

Find the quotient of the following:

7 3 1 7 9
a. ÷ b. 8÷3 c. ÷
8 4 4 8 10

1 4 1 3 2
d. 2 ÷ e. 9÷3 f. 4 ÷1
6 5 2 7 5
Solution:

7 3 7 4 7 1 7 1
a. ÷ = × = × = =1
8 4 8 3 2 3 6 6

1 13 4 32 6
b. 8 ÷ 3 =8 ÷ =8 × = =2
4 4 13 13 13

7 9 7 10 7 5 35
c. ÷ = × = × =
8 10 8 9 4 9 36

1 4 13 5 65 17
d. 2 ÷ = × = =2
6 5 6 4 24 24

1 9 7 9 2 18 4
e. 9 ÷ 3 = ÷ = × = =2
2 1 2 1 7 7 7

3 2 31 7 31 5 155 8
f. 4 ÷1 = ÷ = × = =3
7 5 7 5 7 7 49 49
Example 23

Solve each of the following problems.

1 1
a. Khen has 6 meters of cable wire. He needs 2 meters for the extension of his cable TV each
2 3
room of his house. If his wire enough for 3 rooms?

b. Teresa made 1 liter of lemon juice for her and her four friends. One of her friends wanted to drink
2
of it and the remaining part was equally shared by Teresa and her other friends. How many liters
5
would Teresa and each of her three other friends have?

Solution:

1 1 1
a. Since Khen needs 2 meters for each room, let us divide 6 by 2 .
3 2 3

1 1 13 7 13 3 39 11
6 ÷ 2 = ÷ = × = =2 .
2 3 2 3 2 7 14 14
Therefore, his cable wire is not enough for 3 rooms and can only cover for 2.

2 3
b. 1− = liters
5 5

3
Divide liters by 4.
5

3 4 3 1 3
÷ = × =
5 1 5 4 20

3
Therefore, Teresa and her three friends would have liters of lemon juice each.
20
Example 24

2 1
Enrique spends of his monthly salary, saves of the remainder, and share the rest equally to his
5 3
two sisters and a brother. If his monthly salary is ₱ 60,000 , how much does he give to his brother
every month?

Solution:

First, we have to subtract Enrique’s expenses from his salary. So,

2 60,000 2 120000 2
60,000 × = × = × =24,000.Thus, 60,000−24000=36000.
5 1 5 1 1

Next, we have to subtract his savings from the remaining ₱ 36,000. He saves
1 36000 1 36000
36,000 × = × = =12000. The amount 36000−12000=24000 is divided by 3 for
3 1 3 3
his three siblings: 24000 ÷ 3=8000. Therefore, Enrique gives ₱ 8,000 to his brother.

REFERENCES:

Leah M. Lundag, Brian Roy C, Lopez, and Kenneth Adrian P. Dagal, Business Mathematics (2016),
Vibal Group Inc.Araneta Avenue, Quezon City.
 BUSINESS MATHEMATICS
QUIZ NO. 1 WEEK 1

GRADE 12 (ABM)

Name: _______________________________ Score: ______

ACTIVITY 1

Change the following improper fractions into mixed numbers, and vice versa.

10 1
1. 6. 3
6 5

29 4
2. 7. 9
6 7

53 7
3. 8. 13
13 22

121 3
4. 9. 51
38 10

113 12
5. 10. 101
26 17

ACTIVITY 2

Determine whether the given pairs of fractions are equivalent.

28 3 2 10
1. , 4. ,
56 6 7 35

36 18 5 20
2. , 5. ,
106 53 7 28

20 16
3. ,
25 64
 ACTIVITY 3

A. Add. Write each answer in simplest form. (Show Your Solution!)

2 1
1. +
7 7

7 2
2. +
12 12

2 1
3. 2 +4
5 5

12 1
4. +
5 10

11 3
5. +
14 4

B. Subtract. Write each answer in simplest form.

1
1. 4−
5

7 1
2. −
9 5

3 1
3. 5 −2
5 3

1 3 5
4. 16 −10 −
1 8 4

1 12 2
5. 32 −10 −5
5 6 10

ACTIVITY 4

A. Find the product of the following fractions in simplest form.

3 15
1. ×
5 30

7 6
2. ×
9 49

2 16 1
3. × ×3
5 25 8

2 3 1
4. 3 × ×
3 22 4

22 11
5. 3 ×
40 22
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B. Find the quotient of the following fractions in simplest form.

1.

2.

3. 7

4.

5.
12 3

×
÷
25 20

64 16 1
÷ ×
7 21 4

3
7

81 9
÷
÷2

8 24

4 35
12
14

8
÷ ×

I. OBJECTIVES:

Solution:
7
7 128 35 120

Decimals & Percents

III. LESSON PROPER:

BUSINESS MATHEMATICS
LECTURE NOTES WEEK 2
GRADE 12 (ABM)

At the end of the lesson, the students will be able to:

a. Give real-life situations to illustrate fractions, decimals, and percent ;

b. Solve problems involving fractions, decimals, and percent.

II. CONTENT TOPICS:

Consider the following problem.

Gab got a summer job in a dessert kiosk. His first customer ordered for a sundae
fudge that costs ₱ 28.75 . The customer gave ₱ 30.00 .How much change should he give?
 If the sundae fudge costs ₱ 28.75 , it takes 28 pieces and three-fourths of ₱ 1.00 . Thus, the
change is ₱ 1.00 and one-fourth part of ₱ 1.00 or ₱ 0.25 .
30.00
−28.75
₱ 1.75
Therefore, Gab should give his customer a change of ₱ 1.25 .
25
In decimal notation, the fraction is written as 0.25. The position of the decimal point is
100
based on the power of 10 in the denominator of the fraction.
For example,
25 25
= 3 =0.025and3 25 =3.025
1000 10 1000

When a number is written in decimal notation, we call it a decimal number (or simply decimal).
Because out number system is based on decimal numeration (that is, base-10 numeral system),
converting a fraction into decimal follows the ordinary division of numbers, which we are used to.

Example 1
25
Convert into a decimal number.
100
Solution:
25
Interpret the fraction bar to mean “divided by”. This means that is the same as 25 divided by 100.
100
0.25

100 25.00
−20.00
5.00
−5.00
0
25
Therefore, is 0.25 in decimal form.
100
Example 2

3
Write 2 in decimal form.
4
Solution:

0.75

4 3.00
3 3× 25 75
−28.00or = = =0.75
4 4 ×25 100
5.00
−5.00
0

3 3
Therefore, 2 =2+ =2+0.75=2.75.
4 4
Example 3

Write 0.175 in fraction form.

Solution:

175 175 ÷25 7

0.175= = =
1000 1000 ÷25 40
Example 4

Solution:

a.

b.

R
E
T
N
P
C 2.35=2

2 decimal places

Example 5

1.1875=1

4.2=4
3

10
3 decimal places

answer in fraction form.

Solution:
a.
3
4 −1.1875
8

1875
10000

( 1042 + 103 )+ 144

3
35
100

=1
=2
35 ÷ 5
100 ÷ 5

2 zeros

1875 ÷625
10000 ÷625

4 −1.1875=4 −1 = − = − = =3
8

2 1
8

100
=1

3 35 19 70 19 51
16 8 16 16 16 16

=4 ; 4.25=4.25=4
25
=4
3 zeros

Convert 2.35 and 7.425 to fraction form in lowest terms.

7
=2 ;7.425=7
20

3
16

3
16

1
4
425
=
425 ÷ 25
1000 1000 ÷ 25

3 decimal places

b.

( 4.2+ 103 )+( 4.25− 34 )=(4 15 + 103 ) ÷ (4 14 − 34 )

( 215 + 103 )÷ 144

¿
45 4 9
× ¿
10 14 7
=7

3 zeros
17
40

Perform the indicated operations by converting each decimal to fraction first, and give the

( 4.2+ 103 )+( 4.25− 34 )

To find the percent of a number, convert the percent into a decimal number by moving the
decimal point two places to the left. Then multiply this decimal number to the given number.

Example 1

Solution:

30 %=0.30
Find 30 % of 390.
 0.30 ×390=117
To find what percent a number is of another number, write a fraction where the numerator is
part and the denominator is whole. Simplify the fraction if possible. Then convert the decimal to
percent.

Example 2 What percent of 50 is 20?

Solution :

20 2
= =0.40=40 %
50 5

Therefore, 20 is 40 %of 50.

Example 3 In a class of 40 students, 15% got a grade of A. How many students got an A?

Solution:

15% of 40=0.15 × 40=6 students got a grade of A.

Example 4 Of the 500 runners who attended the FUN RUN, 120 finished the 5-kilometer run.
What percent finished the run?

Solution:

120 120÷ 20 6
120 of 500= = = =0.24=24 %finished the 5-kilometer run.
500 500÷ 20 25

Example 5 The service charge in a bistro is 10% of the bill. If a customer’s bill is ₱ 785.25 , what
is the total amount to be paid?

Solution:

10 % of 785.25=₱ 78.525. The total amount is 785.25+78.525=863.775≈ ₱ 863.778.

Example 6 Senior citizens has a 20 % discount in food establishments. If Norma, A 72-year-old

woman, has a receipt that amounted to ₱ 645.80 , how much was the original bill?
Solution:

₱ 645.80 is 80 % of the total amount since it has a 20% discount.

Therefore, 645.80 ÷ 80 %=645.80 ÷0.80=₱ 807.25 is the original bill.

REFERENCES:

Leah M. Lundag, Brian Roy C, Lopez, and Kenneth Adrian P. Dagal, Business Mathematics (2016),
Vibal Group Inc.Araneta Avenue, Quezon City.

BUSINESS MATHEMATICS
QUIZ NO. 2 WEEK 2

GRADE 12 (ABM)

Name: _______________________________ Score: ______

ACTIVITY 1
A. Convert each fraction to decimal notation.

7 12
1. 6.
10 20

3 16
2. 4 7.
100 25

15 6
3. 8. 1
30 20

3 100
4. 9.
8 16

14 9
5. 10. 8
100 32

B. Perform each indicated operation by converting each decimal to fractions first, and give the
answer in fraction form.

1
1. 2 +4.5
2

7
2. 0.1+
10

3
3. 1.25−
4

1 1
4. − +1.75
2 4

3 9
(
5. 1.2+2
5
÷1)10

ACTIVITY 2

A. Read carefully the phrases/question and find the following:

1. 3% of 18 =

2. 25 % of 128 =

3. 3.5% of 355 =

4. 75% of 10 000 =

5. 24.9% of 456 =

6. What percent of 46 is 21? =

7. 7% is what percent of 75 ? =

8. What percent of 120 is 80? =

9. What percent of 75 is 180? =

10. 85 % is what percent of 5 500? =

 ACTIVITY 3

A. Problem Solving. Please show your solution inside the box.

1. The senior citizens enjoy 20% discount and another 12% discount after the 20% discount on the
medicines prescribed by their doctors. An insulin costs ₱ 1 200, and an elderly insists that she will
only pay ₱ 816. Is the elderly correct? If not, what should be the correct payment ?

2. A mocha latte sells at a regular price of ₱ 180. Because the coffee shop has an anniversary treat
today, they sell the latte for only ₱ 80. Find the percent decrease in the price.

BUSINESS MATHEMATICS
LECTURE NOTES WEEK 3
 GRADE 12 (ABM)

I. OBJECTIVES:

At the end of the lesson, the students will be able to:

a. Define and give examples of ratio and rate;

b. Express a ratio and rate as a fraction in simplest form (odds form and fractional form);
c. Simplify a ratio involving rational numbers or decimals;
d. Write ratios and rate illustrating real-life situations; and
e. Solve problems involving ratio and rate.

II. CONTENT TOPIC:

RATIO AND RATE

III. LESSON PROPER:

Nutritional information for a pack of oatmeal:

Serving Size: 35 (g) Serving per package: 11

Nutrients 35 g
Energy (kcal) 142
Protein (g) 3.5
Carbohydrates (g) 27.3
Dietary fiber (g) 1.8
Magnesium (mg) 27.3

The ratio of the amount of the following:

a. Protein to Carbohydrates – 3.5 : 27.3

b. Carbohydrates to Dietary fiber −27.3 :1.8
c. Protein to Serving Size −3.5 :35 →1 :10
d. Dietaryfiber to Energy −1.8 :142→ 9 :71

Ratio

A ratio is a comparison of two quantities by division.

The ratio of a tob can be written in two ways:

a. asa : b (odds notation), where the symbol “:” is read as “is to”; or

a
b. , b ≠ 0 (fractional notation
b

Ratio can be conceptualized in many different ways – usually expressed as a

fraction. That is why a fraction is often called a “rational number” because the word rational
also means “having to do with ratios”. Comparison is a widely used and important application
of ratio.

In the sports world, there are many situations where ratios are used. You may
mention basketball statistics, for example. The ratio of two numbers is a way of comparing
them. If we say that the ratio of two numbers is 3 is to 1, this means that the first number is
thrice a large as the second number. The ratio of the two numbers can be expressed as a
fraction, where the first number in the ratio is the numerator and the second number in the
ratio is the denominator.
 Note that we handle ratios the way we handle fractions. That is, when we say that the
5 1
ratio of 5 girls to 10 boys is the same as 1 to 2, we are actually saying the following: =
10 2
(reduced to lowest terms)

Problems involving fractions may be looked at as ratio problems as well. Hence, the terms
ratios and fractions are interchangeable, as given in the following examples.

Example 1

2
If there are 2 boys in a group of 8 students, we say that of the students are boys or the
8
ratio of boys to the number of students is 2 :8or 1 :4 .

Example 2

10
The ratio of 10 to 12 may be written as 10 :12 (odds notation) or (fractional notation).
12

Example 3

Simplify the following ratios to their simplest form.

1 3 1 3
a. : b. 1 : c. 0.09 : 0.12
3 4 3 4

Solution:

To simplify a ratio involving rational numbers, multiply each of the quantities by the LCM of
their denominators.

a. The LCM of 3 and 4 is 12; hence,

1 3 1 3
: →12
3 4 () ()
3
:12
4
→4:9

Alternative solution: (Reduce/simplify the way you would a complex fraction.)

1
1 3 3 1 4
: = = × or4 :9
3 4 3 3 3
4

1 3
b. The LCM of the denominators of 1 : is 12.
3 4

1 3 4 3 4 3
1 : → : →12
3 4 3 4 3
:12
4 () ()
→ 16 :9

Alternative Solution:

1 4
1
1 3 3 3 4 4 16
1 : = = = × = ∨16 :9
3 4 3 3 3 3 9
4 4
c. When a ratio is in decimal form, write its equivalent form without the decimals then reduce
the ratio as needed. The ratio 0.09 : 0.12may be cleared of decimals by multiplying both the
numerator and denominator by 100. That is,

0.09 0.09× 100 9 3

= = = ∨3 :4
0.12 0.12× 100 12 4

Alternative solution:

Convert to fraction so as to show which power of 10 is to be multiplied to the ratio:

9
0.09 100 9 3
= = = ∨3 :4
0.12 12 12 4
100

Example 4

In a class of 40 students, 16 are from the city and 24 are from the provinces. What fraction of
the students is from the provinces? What is the ratio of students from the provinces to those
from the city?

Solution:

24 3
The fraction of students from the provinces is given by or in lowest terms. That is, the
40 5
ratio of students from the provinces to the total number of students in the class is 3 :5. The
24
ratio of students from the provinces to those from the city is or 3 :2.
16

Example 5

In a class of 40 students, the ratio of passing grades to failing grades is 5 to 3. How many
failed the course?

Solution:

5
The ratio 5 to 3 (or 5 :3or ) indicates that for every 5 + 3 =8 students, there are 3 who
3
would fail. That is,

3 3
of the class failed or ( 40 )=15 students failed.
8 8

How do we use ratios in measurement? When comparing measurements, we use the same
unit of measurement in the numerator ass in the denominator. (In this case, a ratio has no
unit.)

Example 6

A chocolate cake requires an average of one hour of baking time while a cupcake requires
only 20 minutes of baking time. What is the ratio of baking time for chocolate cake to that for
the cupcake?
Express your answer in simplest form.

Solution:

The chocolate cake requires 1 hour or 60 minutes to bake. The cupcake requires 20 minutes
to bake. Therefore, the ratio of the baking time for the chocolate cake to that for the cupcake
is 60 :20. In simplest form, this is 3 :1. (Note that the final answer has no unit.)

Example 7

Write the ratio, 28 days to 8 weeks, as a fraction in lowest terms.

Solution:

4 weeks 1
Change 28 days to weeks: 7 days = 1 week, so 28 days = 4 weeks. Therefore, = .
8 weeks 2
The ratio of 28 days to 8 weeks is 1 :2.

One application of ratio is finding the size or value of different groups of quantities given the
ratio.

Example 8

A piece of string, 20 cm long, is divided into two pieces in the ratio 3 :2. What is the length of
each of the two pieces of string?

Solution:

Ratio = 3:2

Therefore, the Number of parts ¿ 3+2=5

20
Length of each part ¿ =4 cm
5

Length of the longer piece ¿ 4 cm3 parts=12 cm

Length of the shorter piece = 4 cm 2 parts = 8 cm

Alternative Solution:

The total number of equal parts ¿ 3+2=5.

3 3
The length of the longer piece ¿ of the length of the whole string ¿ ×20=12 cm.
5 5

2 2
The length of the shorter piece ¿ of the length of the whole string ¿ ×20=8 cm .
5 5

Aside from the examples above, we have the following problems where ratio is used to
illustrate real-life situations.

Example 9

a. We always use ratio in cooking: the ratio of eggs to flour; the ratio of salt to water;
the ratio of chicken to pork.
Solution:

Example 2.
A
R
E
T
b. When at the grocery store, I buy 5 bananas for 60 pesos. The ratio is written as
5:60 or 60:5 or 12:1.

c. At a grocery store, there was a sale of buy one take one free loaf bread at Php70.
That is, for every loaf of bread you buy, you get one free. The ratio is 1:1.

Consider the following:

To make a lemonade, Jean bought a lemon squash that is to be mixed with water.
For each lemon squash, she plans to mix it with 250ml of water. Express this as rate.

The “ratio” and “rate” explain the equivalence of one measurement or quantity from
the other. We say, the rate of 1 lemon squash in 250 ml water can be expressed as
1lemon
250 mL of water

What is RATE?
or 1:250.

Rate is a ratio that compares quantities of different units. A unit rate is a rate that has
a denominator of 1; that is, a rate for one unit of a given quantity.

In the above example, rate shows the comparison of quantities lemon squash units
and number of mL of water.

Example 1.
120 km
2hours

If you drive 120 km in 2 hours, then your rate can be expressed as the ratio of
kilometers to hours; that is

Your unit rate is

60 km
1hour
or 60km/hr. (This is your average rate.)

A car travels 120 km on 10 liters of gas. Give the ratio of kilometers to liters (the rate)
and express as a unit rate.

Solution:

The ratio of kilometers to liters is

kilometers/liter.

REFERENCES:
120 km
10liters
. The unit rate is 12
kilometers
liter

Mia P. Rey, Ph.D., Mark Adrian S. Asinas, Joy Cando-Asuncion, and et.al, Business
= 12

Mathematics (2016), 4th Floor, Commission on Higher Education, C.P. Garcia Ave., Diliman,
Quezon City
 BUSINESS MATHEMATICS
QUIZ NO. 3 WEEK 3

GRADE 12 (ABM)

Name: _______________________________ Score: ______

ACTIVITY 1 : CHECK FOR UNDERSTANDING.

A. Write each of the following ratios as fraction in simplest form.

1. 5 is to 25
2. 72 : 64
3. 250 to 1,000
4. 54 to 27
5. 81 is to 27

B. Express the following ratio as fraction, decimal, and percent.

1. 1:4 2. 2:5 3. 1:8

WITH A COLON FRACTION DECIMAL PERCENT

1. 1:4
2. 2:5
3. 1:8

ACTIVITY 2

1. A survey asked 130 students which between the subjects Accountancy and Marketing is
their preference. The result is given by the table below:

Response Solutions
Accountancy 70
Marketing 60
Total 130

Write each of the following ratios as a fraction in simplest form.

a. Students who prefer Accountancy to all students surveyed.

b. Students who prefer Marketing to students who prefer Accountancy.

2. A family of 5 people whose gross monthly income is Php 30,000 budgeted the following
amounts for their major monthly expenditures:

House Rent Php 8,000

Food Php 6,000
Electricity Php 2,000
Others Php 1,000

a. What is the ratio of the house rent to the food bill?

b. What is the ratio of the food bill to the gross monthly income of the family?

c. What is the ratio of the electricity bill to the food bill?

d. What is the ratio of the other expenses to the gross monthly income of the family?

3. Write each ratio as a fraction in simplest form.

a. In Metro Manila, 7 out of ten people live in rented homes.

b. In a village, 120 homes in 130 have cable TV connection.

c. In the Philippines, 35, 000, 000 out of 100,000,000 people are active in facebook.

d. In a college, there are 120 students on scholarship out of 500 students.

4. To make a 500g cake, 6 cups of flour, 3 cups of butter, and 1.5 cups of sugar are
needed. Write down the ratio of:

a. The amount of sugar to the amount of flour;

b. The amount of flour to the amount of butter to the amount of sugar.

ACTIVITY 3

Find each unit rate.

1. A car travels 600 kilometers in 12 hours.

2. A pump moves 100 liters in 8 minutes.

3. A group of students cleans 200 square meters of yard in 4 hours.

4. Children can eat 30 slices of pizza in 15 minutes.

From

If
a
b
and
R
O
I
T
P
N
5. Ms. Ledesma drives at 75 km per hour. How many hours does it take for her to drive
to her destination that is 450 km away?

I. OBJECTIVES:

c
d
BUSINESS MATHEMATICS
LECTURE NOTES WEEK 4
GRADE 12 (ABM)

At the end of the lesson, the students will be able to:

a. Use the fundamental property of proportions to show if two ratios form a proportion and solve
a proportion;
b. Recognize if a proportion is direct, is an inverse proportions, and partitive proportions; and
c. Solve problems involving direct proportions, inverse proportions, and partitive proportions.

II. LESSON PROPER:

A statement that two ratios are equal is called a proportion.

If

a c
a
b
c
d
a c
and are two equal ratios, then the statement = is called a proportion.
b d

= , a is the first term; b the second term; c the third term; and d the fourth term.
b d
The first and fourth terms are called the extremes. The second and third terms are called
the means.

, then ad=bc .Note that this is so because of the Multiplication Property of

Equality. That is, multiplying the whole equation by bd yields the result as shown below.

Other properties you may consider:

Adding 1 to both sides of

a c
b d

Example 1
b d
= is equivalent to = .
a c
a c
b d
a
b

a
b
c
∙ bd= ∙ bd gives ad=bc.
d

c
= , we get + 1= +1 which simplifies to
d
a+b c +d
b
=
d
.
 5 10
In the proportion = , name the four terms, the means, and the extremes.
6 12

Solution:

First term ¿ 5 Second term ¿ 6

Third term ¿ 10 Fourth Term ¿ 12

The means are 6 and 10; the extremes are 5 and 12.

Fundamental Property of Proportions

In any proportion, the product of the means is equal to the product of the extremes. That is,
the cross products of the terms are equal. In symbols,

a c
If = , then ad=bc.
b d

Sometime you will see the solution by just looking at the problem. It is still good to solve for
the solution by using the Fundamental Property of Proportions.

Example 2

7 14
We use the Fundamental Property of Proportions to verify that = .
8 16

Equating the cross products of the terms gives

7 ×16=8 ×14. That is, 112=112.

Example 3

8 18
Do the ratios and form a proportion? Explain.
10 22

Solution:

8 18 8 18
We compute for the cross products of and . If they are equal, then and form a
10 22 10 22
8 18
proportion. We have 8 ×22=176; while 10 ×18=180. Since 176 ≠ 180 , and do not
10 22
form a proportion.

Example 4

We also use the Fundamental Property of Proportions to find the missing term in a
proportion as shown below.

7 n
Given = . We set cross products equal: 8 n=7 ( 16 )∨n=14.
8 16

Example 5

n+4 n−2
Solve for n: = .
5 3

Solution:
The cross products are equated as shown below.

5 ( n−2 )=3(n+ 4)

5 n−10=3 n+12

2 n=22

n=11

Proportions can be used to solve a variety of word problems. The following examples show
some of these word problems. In each case, we will translate the word problem into a
proportion, and then solve the proportion using the fundamental property of proportions.

Example 6

Eight tea bags are needed to make 5 liters of iced tea. How many tea bags are needed to
make 15 liters of iced tea?

Solution:

Let t represent the number of tea bags. The problem translates to the following proportion:

t 8
=
15 5

Note that both ratios in the proportion compare the same quantities; that is, both ratios
compare number of tea bags to liters of iced tea. In words, the proportion says “t tea bags to
15 liters of iced tea as 8 tea bags to 5 liters of iced tea”.

Using the fundamental property of proportions, we obtain the following:

t 8
= →5 ( t )=15 ( 8 ) t=24 tea bags
15 5

Example 7

A manufacturer knows that during an average production run, out of 1,000 items produced
by a certain machine, 25 will be defective. If the machine produces 2,030 items, how many
can be expected to be defective?

Solution:

We let x represent the number of defective items and solve the following proportion:

x 25
=
2,030 1000

Example 8

If 1 out of 6 people buy a particular branded item, how many people can be expected to buy
this item in a community of 6,000 people?

Solution:
 p
Let p=¿ the number of people buying the branded item. The ratio defines the number
6000
of people p out of 6,000 buying the branded item. This ratio is equal to 1to6 . These two
ratios are equal; that is, they form a proportion as given below.

P 1
=
6000 6

Solving for p, we get p=1000 . So, 1000 people can be expected to buy the particular
branded item.

How do we recognize whether a given proportion problem involves a direct proportion, an

inverse proportion, or a partitive proportion? The definitions below determine the type of
proportion(variation) :

Types of proportion (variation):

1. Direct proportion

Two variables, say x and y , varying such that as x increases, y also decreases
x y
proportionally; that is, the ratio is always the same. The same holds true with the ratio .
y x

2. Indirect / Inverse

Two variables, say x and y , varying such that as x increases, y decreases, or as x

decreases, y increases proportionally; that is, the product of x and y is always the same.

3. Partitive proportion

A whole is divided into more than two parts.

Example 9

Two boxes of chocolates cost Php180. How much do 7 boxes of chocolate cost?

Solution:

The more the boxes, the higher cost; that is, both quantities are increasing. We have a direct
no . of boxes no . of box no . of box
proportion. The ratio is always the same. That is, = .
cost cost cost
Substituting the given values, we have

2 7 180× 7
= cost= =P 630
180 cost 2

Example 10

Forty liters of water is transferred into 3 containers in the ratio 1:3:4. How much water is in
each container?

Solution:

The ratio 1:3:4 indicates 1+3+ 4=8 portions. 40 liters will be divided into 8 portions; that is,
40
=5 liters (L) per portion.
8

Container 1 (1 portion)¿ 1× 5 L ¿ 5L in it.

 Container 2 (3 portions) ¿ 3 ×5 L ¿ 15L in it.

Container 3 (4 portions) ¿ 4 ×5L ¿ 20L in it.

Example 11

If Trina works 20 hours, she earns Php600. How much does she earn if she works 30 hours?

Solution:

This is a direct proportion problem; that is, the more hours Trina works, the more she earns.
Let x represent Trina’s earnings for working 30 hours. The ratio is the always the same. That
is,

20 hours 30 hours 30 hours ×600 pesos

= → x= =900
600 pesos x pesos 20 hours ( pesos)

Example 12

If nine men take 15 days to assemble 18 machines, how many days will it take 20 men to
assemble 60 machines?

Solution:

This problem is a combination of direct and indirect relations. To deal with this problem, ask
yourself how the variable M (men) varies with respect to D (days); that is, will more men
require more days or will more men require less days to do the job? Will more men produce
more machines or more men produce less machines? In this case, more men produce more
machines. Hence, M and C are directly related. The equation equivalent of this problem is
given below.

M 1 D1 M 2 D 2
=
C1 C2

The subscript 1 indicates the first situation in the problem while the subscript 2 indicates the
second situation. Substituting the values, we have

9(15) 20 D 2
= → D 2=22and one half days.
18 60

REFERENCES:

Rey, M. R, Ph.D., et.al. (2016). Teaching Guide for Senior High School Business
Mathematics (2016), 4th Floor, Commission on Higher Education, C.P. Garcia Ave.,
Diliman, Quezon City.
 BUSINESS MATHEMATICS
QUIZ NO. 4 WEEK 4

GRADE 12 (ABM)

Name: _______________________________ Score: ______

ACTIVITY 1

Solve each of the following problems. (3 points each)

1. Jessa buys three bananas for Php 25.00. How much does she have to pay for a dozen of
these bananas?

Solution:

2. A typist can finish 4 pages in 6 minutes. How long will it take him to finish 18 pages?

Solution:

3. A menu which serves 5 people requires 3 cups of flour. How many cups of flour are
needed for the menu to serve 20 people?

Solution:

4. To finish a certain job in 8 days, 6 workers are needed. If it is required to finish the same
job in 2 days advance, how many workers have to work?

Solution:

5. A supply of food lasts for a week for 20 families. How long would the supply last if 3 more
families have to be supplied?

Solution:

6. A decreased person stated in his testament that his 30 – hectare land be divided among
his three children using 1:2:3 partition, the oldest getting the biggest share. How much did
the second child reserve?

Solution:

1
7. The ratio of cups of water to cups of sugar in a menu is 3:1: . If this is just for one
2
serving, how much of each is needed for a menu that makes 5 servings?

Solution:
 ACTIVITY 2

Explain why the following shows an inverse relationship. (2 points each)

1. Time and speed

2. Number of workers and days
3. Volume and Pressure
 BUSINESS MATHEMATICS
LECTURE NOTES WEEK 5
GRADE 12 (ABM)

I. OBJECTIVES:

At the end of the lesson, the students will be able to:

a. Define, differentiate, and explain the reasons for using the mark-on, mark-down
and mark-up;
b. Compute for the mark-up, mark-down, and mark-on of given commodities or
services based on stated conditions.
c. Recommend solutions to enable a business enterprise to survive in a constantly
changing market environment.

II. LESSON PROPER:

Buying and Selling

Introduction:

Business engaged in merchandising generates profits through their buying and selling
activities. The amount of profit depends on many factors, one of which is the pricing of
goods or items.

Business may opt to determine the cost price, operating cost, and profit per unit of
commodity before computing the selling price per unit. Alternatively, the total cost price
added to the total operating expense and the total profit expected may just be divided by
the number of items being sold.

COST PRICE:

 the price that a company or store has to pay for the goods it is going to sell.
 The price that has to be spent to produce goods or services before any profit is
added.
 This usually computed on a per unit basis.

OPERATING COST:

 The price (per unit) incurred relative to the production and sale of a commodity.

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.
To compute for the Selling Price:

SELLING PRICE = COST PRICE + OPERATING COST + PROFIT

S=C+ E+ P
or
S=C+ MU

where, S = Selling Price

C = Cost Price

E = Operating Expenses

P = Profit

MARK – UP

 The difference between the selling price and the cost price sometimes referred to
as MARGIN or GROSS PROFIT

To compute for the MARK – UP:

MARK – UP = SELLING PRICE – COST PRICE

MU =S−C

Where,

MU = MARK – UP

S = Selling Price

C = Cost Price

Or

MARK – UP = OPERATING EXPENSES + PROFITS

MU =E+ P

Profit accounts is for the cost price and operating cost incurred by the business owner, while
mark – up is only accounts for the cost of raw materials necessary to produce the item
being produced for sale.

Example:

1. Aling Ana would like to sell little trinkets she purchased from Divisoria for Php 12 each. If
the operating cost is set at 25% of the cost and she would like to have a 15% profit on the
cost of each item,

a. Determine the mark – up price for each trinket.

b. HelpAling Ana determine the selling price for each trinket.

Solution:
 a. MU =E+ P

¿ 0.25 ×12+0.15 ×12

¿ 3+1.90 → Php 4.80

b. S=C+ MU

¿ 12+4.80 → Php 16.80

2. A jacket which costs Php 1,350 is being sold at Php 2,025. What is the rate of mark – up
based on cost?

Solution:

2025−1350
Rate of Mark – up = =0.50
1350

MU
Mark – up based on its cost: MUC %= × 100 %
C

¿ 0.50 ×100 % → 50 %

The jacket has a 50% mark – up based on its cost.

3. Julia buys a notebook with a cost of Php 45. The rate of mark – up based on cost is
25%. Find the selling price and the mark – up.

Solution:

MU =0.25 × 45→ Php11.25

S=45+11.25 → Php56.25

The selling price of Julia’s notebook is Php 56.25 which includes a mark – up of
Php 11.25.

4. Peter decides to impose a mark – up of Php 5 on each pen he sells to his classmates and
friends. This represents a 20% mark – up based on the selling price. Find the cost and the
selling price of the pens Peter sells.

Solution:

MU =0.20 × S

5 0.20 S 5
5=0.20 S → = → S= =Php 25
0.20 0.20 0.2

The selling price of each pen Peter sells is Php 25.

C=S−MU →C=25−5=Php 20

Peter’s pens had a cost price of Php 20 each.

MARK - ON
Some businesses will want to take advantage of his peak season and thus, increase the
prices already pegged for their commodities. This is what we call the MARK – ON.

MARK – ON = PEAK SELLING PRICE – REGULAR SELLING PRICE

MO=PS−S → PS=Peak Selling Price , and S=Regular Selling Price

Reasons why mark – on becomes an option for a business owner:

 A calamity has hit the source of a raw material or commodity therefore affecting
its supply.
 Seasonal demands (Christmas Items, Valentines, etc.)
 Special occasion is being celebrated (commemorative, death anniversary, etc.)

Examples:

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 Php 10 per kilo. If the cost of galunggong is Php 90 per kilo with a 35%
mark – up, what is its new selling price with the additional increase of Php 10? By how much
is the rate of mark – up based on cost increased by adding Php 10 to the regular selling
price of the galunggong?

Solution:

MU =0.35 × S → 0.35× 90=Php 31.50

Selling Price before increase:

S=C+ MU → 90+31.50=Php121.50

Selling Price after increase:

PS=S+ MO→ 121.50+10 → Php 131.50

Combined Rate of Mar – up and Mark – on:

31.50+ 10
¿ =0.4611=46.11 %
90

The mark – up is increased by 11.11% by the additional mark – on of Php 10

imposed by ManangCrising.

2. Find the regular selling price and the cost price of memorabilia items being sold for Php
500 if the mark – up is set at a rate of 25% of the cost price with an approved 15% mark –
on rate based on the cost price included because of a special event.

Solution:

PS=C+ MU + MO

500=C+0.25 C+ 0.15C

500=1.40C → C=Php 357.14

The cost price of the memorabilia item is Php357.14 .

MU =0.25 C →=0.25 ( 357.14 ) → Php89.29

S=C+ MU →=357.14+89.29 →=Php 446.43

The regular selling price of the memorabilia item is Php 446.43.

MARK – DOWN

 The difference between the REGULAR SELLING PRICE and the SALE PRICE.
 Formula:
MARK – DOWN = SELLING PRICE – SALE PRICE
MD=S−LP

where, MD = Mark Down, S = Selling Price, SP = Sale Price

Mark – downs commonly happen when the mall decides to sell their items at cut down
prices to clear their warehouse collection. For instance, some items which usually sold for
Php 150 are sold at 50% off during mall sales and so the mark – down price is set at Php
75.

Reasons why a mark – down is sometimes thought of as an option for a business owner:

 The item is a perishable item and it is best to dispose of it sooner than simply throw
it away.
 The item has become dirty or worn out, or possibly out of style.
 Competition forces the marking down of an item

Remember that rates of mark – downs are always computed based on the selling price.

Note that it is possible that instead of making the business owner earn a positive profit,
selling an item on sale sometimes gives rise to a negative profit. In this case, the profit is
said to be a LOSS.

When an item is given a selling price where the profit ends up being zero, this is said to be
the BREAK – EVEN PRICE. In this case, the selling price is simply equal to the total of the
cost price and the operating expenses:

Break – even Price = Cost Price + Operating Cost

BEP = C + E

where, BEP = Break – even Price, C = Cost Price, E = Operating Expenses

Examples:

1. Carlo was able to buy a pair of shoes regularly priced at Php 3,500 for only Php 2,100.

a. What was the amount of the mark – down?

b. What was the rate of the mark – down?

Solution:

a. MD=S−SP →=3500−2100→ Php1,400

 MD 1400
b. MD %= × 100 % → × 100 % → 40 %
S 3500

The amount of the mark – down is Php 1,400 which is equivalent to a 40% mark –
down.

2. 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.

a. What was the amount of the mark – down?

b. What was the rate of the mark – down?

Solution:

a. 100 %−55 %=45 % (the sale price is 45% of the selling price)

SP=0.45 × S →=0.45× 8500 → Php 3,825

The sale price of the board game is Php 3, 825.

b. C TOTAL=C+ E

¿ 3450+0.14 × 8500 → Php 4,640

P=SP−CTOTAL

¿ 3825−4640=−Ph p 815(loss)

The loss made on the sale was Php 815.

REFERENCE:

Rey, M. R, Ph.D., et.al. (2016). Teaching Guide for Senior High School Business
Mathematics (2016), 4th Floor, Commission on Higher Education, C.P. Garcia Ave.,
Diliman, Quezon City.
 BUSINESS MATHEMATICS
QUIZ NO. 5 WEEK 5

GRADE 12 (ABM)

Name: _______________________________ Score: ______

ACTIVITY! Problem Solving.

Instructions: Solve the following problems. Show your solution!

Criteria:
Correct Solutions: 3 Points
Correct Answers: 2 Points
5 Points

1. A top costs Mang Mario Php 280 and he decides to mark it up by 30% of the selling
price. Find the selling price and mark – up for the said top.

Solution:

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 Php 15,000 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?

Solution:
3. 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?

Solution:

4. A sari-sari store sells a soft drink case at 360. The store’s overhead expenses are 40% of
cost and the owner wants a profit that is 25% of the cost.

a. How much is the cost of one case soft drinks?

b. What is the highest rate of markdown so that the store will break even?
c. Find the rate of discount that can be offered without acquiring an absolute loss
(that is, failure to get back the cost of the commodity).

Solutions:
 BUSINESS MATHEMATICS
LECTURE NOTES WEEK 6
GRADE 12 (ABM)

I. OBJECTIVES:

At the end of the lesson, the students will be able to:

a. Explain what a single trade discount;

b. Solve problems involving prices and discounts; and
c. Understand why a cash discount makes sense.

II. LESSON PROPER:

Trade Discount:

The supplier usually recommends the suggested retail price of an item. However, because
there is a line of other people who are involved in bringing an item to the hands of the
consumer, these middlemen expect their own share of profit also. Hence, the supplier
normally gives them a special discount to grant them a small room for profit. This discount is
referred to as trade discount.

A trade discount is the amount by which the retail price of a product is reduced by
the manufacturer when it is sold to the reseller or customer. Trade discount problems are
percentage-related problems.

Let us first talk about single trade discounts:

1. When you go to the market and buy meat from a regular vendor or “suki” (as we say in
Filipino), you are sometimes given an incentive or loyalty discount.

2. When you buy an item which a vendor is willing to give out on instalment, you may be
able to convince him/her to give you a cash discount if you are willing to pay the full amount
in cash.

3. During Christmas season and you shop for gifts for your friends and family, we convince
sellers to give us a discount if we buy a stated minimum number of items. This is called a
volume discount.

To compute for the TRADE DISCOUNT:

TRADE DISCOUNT = TRADE DISCOUNT RATE × SELLING PRICE

Example:

1. My regular beef supplier gives me a 5% discount on my meat purchases every week. If

the price of the beef brisket this week is Php375 per kilo and I am planning to buy 1.5 kilos,
how much trade discount will I receive from this purchase?

Solution:
 Total Selling Price ¿ 1.5 ×375 →=Php 562.50

Trade Discount ¿ 0.05 ×562.50 →=Php 28.13

I will get a total trade discount of Php 28.13 for my 1.5 kg of beef brisket this week.

2. My mother admired a pair of earrings that her friend was offering for Php 24,000,
payable in 6 months. She bargained to be given a discount and her friend agreed to give her
12% if she pays in cash. How much will my mother have to pay for the pair of earrings?

Solution:

Trade discount ¿ 0.12 ×24,000 → Php 2,8 80

Discounted Price ¿ 24,000−2,880→ Php21 , 120

My mother should pay her friend Php 21, 120 in cash to avail of the discount.

Equivalent Solution:

Discounted Price ¿ 0.88 ×24,000 → Php 21 ,120

3. A supplier can cover its cost and earn a reasonable profit if an item is sold at Php86.75.
If he is willing to grant a maximum of 30% discount, how much should the selling price of
this item be?

Solution:

100 %−30 %=70 %(the sale price for the item must be 70% of its original selling price.)

86.75
Original Selling Price ¿ → Php 123.93
0.7

The original selling price of the item must be at least Php 123.93.

TRADE DISCOUNT SERIES

There are times when a supplier also designs discounts to encourage specific
behaviour from its clients. For instance, a supplier may want to give its distributor a discount
of 20/10/5. This notation represents a trade discount series. To interpret, the supplier
may, in addition to the 20% discount it gives the distributors, slash another 10% from the
resulting discounted price if the distributor purchases a set minimum volume of items and
another additional 5% if the purchase is paid in cash. Is this equivalent to a 25% single
trade discount?

Let us discover together.

If a popular shoe brand promotes this discount of 20/10/5 for a minimum volume of 250
pairs of shoes. Assuming that the unit selling price of the shoes if Php 2,500, compute the
trade discount per pair of shoes that a distributor avails of under this scheme.

First Trade Discount ¿ 0.20 ×2,500 →=Php 500

Initial Discounted Price ¿ 2,500−500→ Php2,000

Or

Initial Discounted Price ¿(1−0.20)× 2,500=Php 2,000

Second Trade Discount ¿ 0.10 ×2,000 →=Php 200

Second Discounted Price ¿ 2,000−200→=Php1,800

Or

Second Discounted Price ¿ ( 1−0.10 ) × 2,000→=Php 1,800

Last Trade Discount ¿ 0.05 ×1,800 →=Php 90

Total Trade Discount ¿ 500+200+90 → Php790

The distributor price ¿ ( 1−0.05 ) × (1−0.10 ) × ( 1−0.20 ) × 2,500

¿ 0.95 ×0.90 × 0.80× 2,500

¿ 0.684 × 2,500→=Php1,710for each pair of shoes.

Total discount ¿ 2,500−1,710→=Php 790

Is this the same as a 35% single trade discount?

Trade discount ¿ 0.35 ×2,500 →=Php 875

Note that the total trade discount availed of by the distributor did not amount to this much,
but lower. A trade discount series of 20/10/5 is not equivalent to a 35% single trade
discount!

To compute the equivalent single trade discount of 20/10/5,

790
Single Trade discount Rate Equivalent ¿ =0.316=31.6 %
2,500

The trade discount series 20/10/5 is only equivalent to a single trade discount of 31.6%, not
35%.

Alternative Solution:

Single Trade Discount Rate Equivalent

¿ 1−(1−0.05) ×(1−0.10)×(1−0.20)

¿ 1−0.95 × 0.90× 0.80 →=1−0.684=0.316=31.6 %

REFERENCE:

Rey, M. R, Ph.D., et.al. (2016). Teaching Guide for Senior High School Business
Mathematics (2016), 4th Floor, Commission on Higher Education, C.P. Garcia Ave.,
Diliman, Quezon City.
 BUSINESS MATHEMATICS
QUIZ NO. 6 WEEK 6

GRADE 12 (ABM)

Name: _______________________________ Score: ______

ACTIVITY 1: YOU COMPLETE ME!

I. Complete the table below.

ORIGINAL PRICE TRADE DISCOUNT DISCOUNT RATE DISCOUNTED PRICE

₱ 6, 500 ₱ 1, 200

₱ 500 10%

₱ 2, 100 ₱ 5, 600

₱ 27, 800 35 %

ACTIVITY 2: PROBLEM SOLVING

II. Read the situation below and solve the following problems.

1. For Christmas, Paul gave each of his 34 classmates a shirt with unique design for
their class remembrance. He found a supplier who gives 8% discount for a minimum
of 25 shirts purchased. The total cost of the shirts Paul purchased amounted to
₱ 3, 910. How much was the unit selling price of the shirts? (5 points)
2. A manufacturer sells kayaks to dealers for Php 94, 500 with discounts 40/10/5.
(15 points)
a. Determine the net price of a kayak.
b. How much is the total trade discount?
c. What is the equivalent single trade discount for this transaction?
 BUSINESS MATHEMATICS
LECTURE NOTES WEEK 7
GRADE 12 (ABM)

I. OBJECTIVES:

At the end of the lesson, the students will be able to:

a. Solve for the profit given the cost and net sales, and
b. Determine if profit of loss is achieved in a given transaction.

II. CONTENT TOPIC:

PROFIT & LOSS

II. LESSON PROPER

Introduction

Stock profit is the profit incurred when selling commodities more than the purchased
price and broker’s commission and stock loss is the lost amount incurred when selling the
commodities less than the purchased price and the broker’s commission.

Consider the problem:

Rodrigo is engaged in a buy-and-sell business of perfumes. He bought 10 boxes of

perfumes. Each box costs Php 12, 000 and contains a dozen of perfume bottles. He is
planning to sell one perfume bottle at Php 1, 500. What is his expected profit on the 10
boxes of perfume?

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 dozen of perfume bottles and the cost of those 10 boxes gives the profit.

Given: 10 boxes of perfumes containing a dozen of bottles

120 bottles bought by Rodrigo
Cost of each box = Php 12, 000
Selling price of each perfume = Php 1, 500
Solution:
To solve the problem, we compute first the cost of 10 x 12 = 120 bottles.
Since each box costs Php 12, 000 and Rodrigo bought 10 boxes,
Cost = 12, 000 (10) = Php 120, 000

Rodrigo can expect that the net sales he will get upon selling 10 boxes consisting of 120
bottles is,
Net sales = 1, 500 (120) = Php 180, 000

Thus, he has

Profit = Net Sales – Cost

= 180, 000 – 120, 000

= Php 60, 000

The difference between what the merchant invests into business and what he receives in return is
called profit. To compute for 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 the case when Nest Sales is equal to Cost, we call such as BREAK- EVEN.

Example 1

A watch store owner decided to offer a 20% discount for a particular brand of watch
which sells at Php 35, 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 Php 22, 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 = 35, 000 – 22, 000

= Php 13, 000

Profit for selling 5 watches = 13, 000 (5) = Php 65, 000

With 20 % discount,

New Selling Price = 35, 000 – 0.2 (35, 000) = Php 28, 000

Profit per watch = 28, 000 – 22, 000 = Php 6, 000

Profit for 12 watches = 6, 000 (12) = Php 72, 000

Increase in daily profit = 72, 000 – 65, 000 = Php 7, 000

Sometimes, a businessman experiences loss because of mismanagement, unfavourable

market conditions, change in trends for fashionable goods, poor economic situation, unsold
perishable goods, release of new and advanced models for appliance and electronic
gadgets , and a lot more. The example below describe such condition.

Example 2

Annie bought one dozen of smartphones for ₱ 200, 000 with a discount of 5%. Half
dozen were sold at a price of ₱ 18, 000 per unit. However, a new model of smartphone
became available in the market, so she sold the remaining half dozen at ₱ 12, 000 each unit.
What was her profit or loss?

Solution:
Cost of 12 dozens of smartphones

200, 000 – 0.05 (200, 000) = ₱ 190, 000

Net Sales:

For 6 smartphones at a price of ₱ 18, 000/pcs = ₱ 108, 000

For 6 smartphones at a price of ₱ 12, 000/pcs = ₱ 72, 000

Total Net Sales = ₱ 180, 000

Loss = Cost – Net Sales = 190, 000 – 180, 000 = ₱ 10, 000

REFERENCE:

Rey, M. R, Ph.D., et.al. (2016). Teaching Guide for Senior High School Business
Mathematics (2016), 4th Floor, Commission on Higher Education, C.P. Garcia Ave.,
Diliman, Quezon City.
 BUSINESS MATHEMATICS
QUIZ NO. 7 WEEK 7

GRADE 12 (ABM)

Name: _______________________________ Score: ______

ACTIVITY 1:

A. Determine whether the following statement shows a profit of loss situation. Write
P for profit and L for loss.

____1. Ben bought a pen at ₱ 10 each and sold it for ₱ 12.

____2. Martha bought a scientific calculator at ₱ 2, 000. When a new and upgraded model
was released after 2 months, she sells her scientific calculator for ₱ 1, 200 to buy the new
one.

____3. A banana cue vendor gains ₱ 100 for selling it at ₱10 per stick.

____4. The cost of 10 pieces personalized calendar is ₱ 850 and it was sold for ₱ 150 each.

____5. Joy bought a 16 gb memory card at ₱ 600 and decided to sell it to her sister for
₱650.

ACTIVITY 2:

B. Solve each of the following problems.

1. Johny bought two digital cameras at ₱ 15, 490 each. He sold one of the cameras to his
friend at ₱ 13, 500, while the other one was sold to his neighbour at ₱ 16, 200. How
much is Johny’s profit or loss?

2. Michelle went to baguio and bought 20 jars of strawberry jam for ₱ 3, 500 with 15%
discount. When she got back to Manila, she sold 10 of the jams for a total of ₱ 1, 800
and the rest at ₱ 185 each. How much profit did Michelle gain?
 BUSINESS MATHEMATICS
LECTURE NOTES WEEK 8
GRADE 12 (ABM)

I. OBJECTIVES:

At the end of the lesson, the students will be able to:

a. Compute loan interest;

b. Differentiate ordinary interest and exact interest;
c. Convert interest rate per year to equivalent monthly rate and vice versa; and
d. Calculate interest from monthly instalment payments.

II. LESSON PROPER:

INTEREST

Consider the problem.

October of last year, Carl borrowed an amount of ₱200, 000 from PQR Cooperative
at an interest rate of 2% to finance his house renovation. How much is the interest if his due
date is October of next year?

Most business and people acquire assets without paying its full costs at the time of
purchase. The seller may then charge the buyer for this privilege. The amount of charge for
such privilege is called interest. In the loan made by Carl, we compute for loan interest as
follows:

Given: P = ₱200, 000 ; R = 2% ; T = 1 year

Solution:
I = PRT
= 200, 000 (0.02)(1)
= ₱ 4, 000

The amount of money ₱ 200, 000 which was borrowed from the cooperative is called
principal, P, and the interest charged , I = ₱ 4, 000 is the percent of the principal. The period
of time where the lender or creditor will charge the interest starting from loan date up to loan
repayment date is called loan term or interest period, T, which is 1 year in the problem and
the quoted percent is the rate 2%, which is R.

Interest is the percent of the amount of credit extended. In loans, it may be treated as an
expense on the part of the borrower or debtor and may be viewed as an income on the part of the
lender or creditor. Short-term and long-term credits or transactions are commonly offered by banks or
any credit companies. Short-credits are credits good for one day or up to one year, while long term
credits are those for longer than one year.

To compute the simple interest, we use I = PRT

Suppose the term of the loan is stated as a certain number of days, we may divide the
number of days by 365 or 360. When the divisor is 360, we are applying ordinary interest,
which is still used by many businesses. The banks and other credit unions use the exact
interest, in which 365 is used as a divisor.
 Lenders charge interest on the amount of money that borrower owes, which is the
principal. The loan most of the time requires to be paid in regular monthly payments. It may
or may not be equal every month. When the borrower pays all of the interest for a particular
month and also pays a portion of the principal, the amount of the principal that has not yet
been paid is called unpaid balance.

Example 1

Compute for the interest on a credit purchase of ₱ 30, 000 at 8% for 10 and 15 months.

Solution:

Interest for 10 months: Interest for 15 months:

I = PRT I = PRT

10 15
= 30, 000(0.08)( ¿ = 30, 000 (0.08)( ¿
12 12

= ₱ 2, 000 = ₱ 3, 000

Example 2

Francis wants to know which credit company offer lower interest at the same interest
rate of 9% if he plans to borrow a quick cash of ₱ 30, 000 for 90 days. Company A uses the
ordinary interest method to compute for the interest while, Company B applies exact interest
method. Which company will he choose? What is the difference between the interests
offered by the two companies?

Solution:

In ordinary interest, In exact interest,

I = PRT I = PRT

90 90
= 30, 000(0.09)( ¿ = 30, 000 (0.09)( ¿
360 365

= ₱ 675 = ₱ 665.75

In the previous example, the advantage of 365-day year offered by Company B that
is more realistic and financially better for the borrower since the interests are smaller under
the same interest rates. He would save an amount of 675 – 665.75 = ₱ 9.25 if he borrowed
the money from Company B instead of borrowing it from Company A.

Example 3

Convert each rate.

a. 15% per year to the equivalent monthly rate.

b. 1.5% per month to the equivalent annual rate.

Solution:

a. Divide the annual rate by 12 to obtain : 15 ÷ 12 = 1.25% monthly

 b. Multiply the monthly rate by 12 to get : 15 x 12 = 18% annually

Many people use credit card to purchase goods and services for them to attain quick
possession or immediate service, but delay the payment. In credit cards, an interest charge
or finance charge is normally offered. The finance charges on the unpaid balance each
month is the general concept of charging for credit purchases.

Example 4

Elena wants to use her credit card to buy ₱ 10, 000 worth of items payable in 10
months at 15% per year on an annual and monthly basis.

The interest on an annual basis is computed as follows:

10
I = PRT = 10, 000 (0.15)( ¿=¿₱ 1, 250
12

On a monthly basis, the interest may be computed as,

R = 15 (annually) ÷ 12 = 1.25% monthly

I = PRT = 10, 000 (0.0125)(10) = ₱ 1, 250

Note that single payment simple interest which is a direct method of computing interest on
loans over a short period of time is applied.

Example 5

Last month, Philip borrowed ₱ 20,000 at 10% interest rate. He repaid the loan in
three monthly payments. If he wanted to pay ₱ 6, 750 the following 2 months and pay the
remaining balance on the third month, compute the ordinary interest (with 360-day year)
using unpaid-balance method.

Solution:

Illustrated in the next example is a common practice in borrowing business. Here, the
objective is to compute for simple interest on unpaid balance.

To compute for the interest using unpaid-balance method, we follow the following steps:

Step 1: Determine the values of P, R and T.

Step 2: Calculate the interest payment for the month.

Step 3: Subtract the interest payment from the total monthly payment to compute for the
principal payment.

Step 4: Subtract the principal payment from the previous unpaid balance to get the new
unpaid balance.

Step 5: Repeat steps 1 to 4 until the last month. To compute for the total payment for the last
month, add the interest due to the unpaid balance.

First Month Computations:

 30
I = PRT = 20, 000 (.10)( ¿ = ₱164.38
360

Amount paid on principal: 6, 750 – 164.38 = ₱ 6, 585.62

From the loan of ₱ 20, 000, the new unpaid balance is now,

20, 000 – 6, 585.62 = ₱ 13, 414.38

Second Month Computations:

This time the new principal is given by P = 13, 414.38, the rate is still R = 10% and T = 1
month = 30 days.

30
I = PRT = 13, 414.380 (.10)( ¿ = ₱ 110.26
360

This time, the amount paid on principal is,

6, 750 – 110.26 = 6, 639.74

13, 414.38 – 6,639.74 = ₱ 54.87

Philip has to pay 6, 675.74 + 54.87 = ₱ 6, 730.51

Thus, the amount paid on the principal is now, ₱ 6, 730.61.

In credit sale, the customer may pay the purchase price and credit charges in
monthly payments called instalments. It may be computed just once on the principal or it
may be computed monthly on the unpaid balance.

REFERENCE:

Lopez, B. C., Lundag, L. M., Dagal, K. P. (2016). Business Math. Vibal Group Inc.: Araneta
Avenue, Quezon City.
 BUSINESS MATHEMATICS
QUIZ NO. 8 WEEK 8

GRADE 12 (ABM)

Name: _______________________________ Score: ______

ACTIVITY 1:

I. Complete the table using the basic interest formula.

A. Ordinary Interest Method

PRINCIPAL RATE TIME INTEREST

1 ₱ 6, 000 6% 60 DAYS

2 ₱ 1, 500 90 DAYS ₱ 30

3 ₱ 8, 620 15% 1 MONTH

4 ₱ 1, 600 135 DAYS ₱ 42

5 ₱ 7, 200 10% ₱ 540

B. Exact Interest Method

PRINCIPAL RATE TIME INTEREST

1 ₱ 810 7.5% ₱ 14. 98

2 6% 105 DAYS ₱ 25.3

3 ₱ 11, 400 5% 1 MONTH

4 ₱ 875 120 DAYS ₱ 17. 26

5 ₱ 2, 400 7% ₱ 23. 01

II. Problem Solving.

1. Anica bought perfume using credit card at a price of ₱ 2, 400 payable in four months
at 15%. The principal is also repaid equally each month with four payments of ₱ 600
each. Compute for the total interest using the unpaid-balance method. To summarize
what she has to pay, complete the table below.

UNPAID MONTHLY PRINCIPAL TOTAL NEW

MONTH
BALANCE INTEREST PAYMENT PAYMENT BALANCE
1
2
 3
4
TOTAL