Bus. Math 11 Week 2 Module 5
Bus. Math 11 Week 2 Module 5
Business
Mathematics
Quarter 1 – Module 5:
Mark-up, Mark-on and
Mark-down
Business Math – Grade 11
Self-Learning Module (SLM)
Quarter 1 – Module 5: Mark-up, Mark-on and Mark-down
First Edition, 2020
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Business
Mathematics
Quarter 1 – Module 5:
Mark-up, Mark-on and
Mark-down
Introductory Message
For the facilitator:
This module was collaboratively designed, developed and reviewed by educators both
from public and private institutions to assist you, the teacher or facilitator in helping
the learners meet the standards set by the K to 12 Curriculum while overcoming
their personal, social, and economic constraints in schooling.
This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration their
needs and circumstances.
In addition to the material in the main text, you will also see this box in the body of
the module:
As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to manage
their own learning. Furthermore, you are expected to encourage and assist the
learners as they do the tasks included in the module.
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Welcome to the Business Mathematics – Grade 11 Self-Learning Module (SLM) on
Mark-up, Mark-on and Mark-down!
The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a learner
is capable and empowered to successfully achieve the relevant competencies and
skills at your own pace and time. Your academic success lies in your own hands!
This module was designed to provide you with fun and meaningful opportunities for
guided and independent learning at your own pace and time. You will be enabled to
process the contents of the learning resource while being an active learner.
What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in the module.
What I Know This part includes an activity that aims to check what
you already know about the lesson to take. If you get all the answers
correct (100%), you may decide to skip this module.
What’s In This is a brief drill or review to help you link the current lesson
with the previous one.
What’s New In this portion, the new lesson will be introduced to you in
various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.
What I Can Do This section provides an activity which will help you
transfer your new knowledge or skill into real life situations or concerns.
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Answer Key This contains answers to all activities in the
module.
1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.
We hope that through this material, you will experience meaningful learning and
gain deep understanding of the relevant competencies. You can do it!
This module was designed and written with you in mind. It is here to help you
master the topic on mark-on, mark-down and mark-up. The scope of this module
permits it to be used in many different learning situations. The language used
recognizes the diverse vocabulary level of students. The lessons are arranged to follow
the standard sequence of the course. But the order in which you read them can be
changed to correspond with the textbook you are now using.
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In this module, you will be able to:
differentiate mark-on, mark-down and mark-up; and
ABM_BM11BS-Ig-1
obtain mark-on, mark-down and mark-up given the price of a product.
What I Know
Before we begin this lesson, let us find out how much you already know on this
module. After taking and checking this short test, take note of the items that you
were not able to answer correctly and look for the right answer as you go through
this module.
1. Which of the following refers to the sum of all the operating expenses and
profit?
a. mark-on
b. margin
c. mark-up
d. mark-down
2. A product originaly costs ₱50 and is now sold at ₱100. How many percent is
the profit?
a. 25%
b. 50%
c. 75%
d. 100%
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d. selling price
4. What do we call the additional increase in the price of a product during peak
season?
a. mark-on
b. mark-up
c. margin
d. mark-down
6. Which of the following mathematical equations can we use to solve for the
mark-on?
a. MO = MU + S
b. MO = S – MU
c. MO = NP – S
d. MO = S – NP
7. Traders often lower their prices to get rid of “poor-sale” products. What do
we call this price reduction?
a. mark-on
b. margin
c. mark-up
d. mark-down
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10. Which of the following statements is true?
a. Mark-on is the reduction of price on a product.
b. Mark-down is the decrease of price on a product.
c. Mark-up is the increase of price on peak seasons.
d. Mark-up results to a negative profit in the business.
11. Micah has a milktea shop that sells milktea for ₱85 for the regular-sized cup.
However, she is not earning enough to cover the expenses and thus results
to zero profit. What should she impose on her product to address this
problem and since Milktea Festival is coming? Why?
a. Mark-on, she can increase the price anytime she wants.
b. Mark-on, she can take advantage of the Festival to earn more.
c. Mark-down, she can decrease the price and it will all be sold out.
d. Mark-down, she can sell more if her products are affordable.
13. What is the selling price of a t-shirt that costs ₱120 with a mark-up rate of
50%?
a. ₱150.00
b. ₱125.00
c. ₱160.00
d. ₱180.00
14. Bev brought a bracelet for only ₱48 which was regularly priced at ₱60. What
is the mark-down rate of the bracelet?
a. 12%
b. 20%
c. 48%
d. 52%
15. On All Soul’s Day, Tris sells candles for ₱35 per pack. But on a regular day,
she sells them at ₱20 per pack. How much is the mark-on she imposed?
a. ₱10.00
b. ₱15.00
c. ₱35.00
d. ₱55.00
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Lesson
Mark-up, Mark-on and
5 Mark-down
Hello there, business enthusiasts! Setting price on a product is also one of the
most exhausting tasks in starting a business since you have to consider a lot of
things. However, throughout this module, not only you will learn how but you will
also have fun setting the price right.
What’s In
We have learned that base refers to the number that represents a whole or
100%. It is usually preceded by the word “of”. Rate refers to that number which
represents a percent of another number. It can be expressed as decimal, fraction and
percent. Portion refers to that number that represents part of a whole. It is usually
preceded by the word “is”.
When we compute for the portion, we use the formula P = BR. To be able to
easily memorize the formula, we use the illustration shown below.
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Example:
B = 40
Given:
P = 12
P
Formula: R=
B
P
R=
B
Solution: R=
R = 0.3 x 100%
R = 30%
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R = 70% = 0.70
Given:
P = 28
P
Formula: B=
R
P
B=
R
28
Solution:
B=
0.70
B = 40
R = 60% = 0.60
Given:
B = 320
Formula: P = BR
P = (320)(60)
Solution:
P = 180
C. Analyzing the following problems carefully and solving for what is asked.
1. On her 18th birthday, Sara received ₱5,000 from her Ninang Nena.
She used 12% of the money to buy books she needed in school. How
much did she spend?
B = ₱5,000
Given: R = 12% = 0.12 Formula: P = BR
P = (₱5,000)(0.12)
Solution:
P = ₱600
P = 462 P
Given: R = 35% = 0.35 Formula: B =
R
10
P
B=
R
462
Solution:
B=
0.35
B = 1, 320
3. Deemps earned ₱8,000 from her online selling. She made sure that
₱2,500 will be saved for her projects in school. How many percent of
her earnings did she save?
P = ₱2,500 P
Given: B = ₱8,000 Formula: R = B
P
R= B
₱2,500
Solution: R =
₱8,000
R = 0.3125 X 100%
R = 31.25%
Deemps was able to save 31.25% of her earnings
Conclusion:
from online selling.
What’s New
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Throughout the module, you will be doing fun activities that will challenge and
enhance your knowledge and skills in buying and selling. Let’s begin!
After answering the activity, you will realize that there are certain situations
where your income may increase or decrease. These instances will depend upon
certain events such as high or low demand for a product, items are perishable and it
needs to be disposed, competition against other stores of the same product, and even
peak seasons like Christmas.
What is It
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Let us try to understand some of the terms which we will encounter throughout
the module.
Cost Price is the price that a company or store has to pay for the goods it is going to
sell or the price that has to be spent to produce goods or services before any
profit is added. Baking ingredients for cookies and raw materials in creating
bracelets are some examples that comprise the cost price.
Operating Cost is the price spent relative to the production and sale of commodity.
For example, the operating cost in selling cookies would be the fare in buying
the ingredients, the rent for the store, the packaging, and the bills.
Profit is the money earned after the cost price and the operating costs accounted for
after the sale of a commodity. It is the difference between the selling price and
the sum of all the total costs (cost price and operating cost).
Selling Price is the price in which the commodity or good is sold per unit. To compute
for the selling price, we use
𝑺=𝑪+𝑬+𝑷
In order for you to come up with a selling price, you have to account all the
other expenses and the profit you want to gain. If the selling price is too high, the
customers may not be able to afford it. On the other hand, if the selling price is too
low, the company may not gain profit.
Now let us discover and understand deeper the key concepts of buying and
selling.
I. Mark – up
It is the difference between the selling price (S) and the cost price (C), and is
sometimes referred to as the margin or gross profit. It can also be defined as the sum
of all expenses (E) and profit (P).
𝑀𝑈 = 𝐸 + 𝑃
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(ii) Mark – up = Selling Price - Cost
𝑀𝑈 = 𝑆 – 𝐶
Sara would like to resell bags she bought from an online shop which costs ₱100
each. If the operating expenses was 12% of the cost and she wanted to have a profit
that is 18% of the cost:
Cost = ₱100
Given: Expenses = 12% of ₱100
Profit = 18% of ₱100
MU = E+P
MU = (12% x ₱100) + (18% x ₱100)
Solution: MU = ₱12 + ₱18
MU = ₱ 30
Cost = ₱100
Given: Expenses = 12% of ₱100
Profit = 18% of ₱100
S = C + MU
Solution: S = ₱100 + ₱30
S = ₱130
When we want to compute for the rate of mark-up, we can either base the rate
on the cost or on the selling price.
A. Mark-up Rate Based on Cost
Mark-up is based on cost if the cost is taken as the base to express the
mark-up in terms of percent. The formula for the rate of mark-up based on cost,
denoted by 𝑀𝐶, is given by:
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Note:
MC = Mark-up
Cost Multiply the answer by
100% since it will be
MC = MU expressed as a percent.
C
Using what you have learned in the previous modules, we can illustrate
this as:
1. A jacket that costs ₱2,150 is being sold at ₱3,150. What is the rate of markup
based on cost?
Cost = ₱2,150
Given:
Selling Price = ₱3,150
2. Jim decided to resell gym shorts which costs ₱350 at an online store. He
wanted to have a 15% mark-up based on cost. Solve for the mark-up and the
selling price.
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Cost = ₱350
Given:
MC = 15% = 0.15
MU
Since MC= C . We have,
MU = MC x C
MU = 0.15 x ₱350
Solution: MU = ₱52.50
Mark-up is based on selling price if the selling price is taken as the base
to express the mark-up in terms of percent. This is also called as the margin or
gross margin which is sales minus the cost of goods sold. The formula for the
rate of mark-up based on selling price, denoted by 𝑀𝑆, is given by:
Mark-up Note:
MS =
Selling Price Multiply the answer by
100% since it will be
MU expressed as a percent.
MS =
S
Using what you have learned in the previous modules, we can illustrate
this as:
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1. A fruit blender that costs ₱750 is being sold at ₱900. What is the rate of mark-
up based on selling price?
Cost = ₱750
Given:
Selling Price = ₱900
MU = S – C
MU = ₱900 – ₱750
MU = ₱150
2. Shylla’s drawing costs ₱450 and she decided to sell it with 30% mark-up based
on the selling price. Solve for the mark-up and the selling price.
Cost = ₱450
Given:
MS = 30% = 0.30
MU
Since MS = S. We have,
MU = MS x S
MU = 30% x ₱450
MU =₱135
Solution:
The mark-up based on the selling price for the
drawing is ₱135.
S = C + MU
S = ₱450 + ₱135
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S = ₱585
II. Mark – on
In order to compute for the mark – on, we are going to use the formula below:
𝑀𝑂 = 𝑁𝑃 – 𝑆
1. Alucard is selling banana cue at the price of ₱12 per stick on a regular day.
However, because of the recent storm, the supply of banana becomes limited.
Due to a higher demand and limited supply, Alucard decided to sell his banana
cue at ₱18. How much was the mark – on imposed?
MO = NP – S
Solution: MO = ₱18 – ₱12
MO = ₱6
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2. Aling Pacing is selling roses at her stall. Because Valentine’s season is coming,
there is a higher demand for this kind of flower. She decided to increase her
price by ₱15. If the cost of a bouquet of roses is ₱120 with a 20% mark – up,
what is the selling price of the roses? How much would be the new selling price
with the mark – on ₱15?
Mark-on = ₱15
Given: Cost = ₱120
Mark-up Rate = 20% = 0.20
(i) First, let us solve for the mark -up.
MU = 20% x ₱120
MU = 0.20 x ₱120
MU = ₱24
Solution:
Then, we will solve for the selling price of the
roses.
S = C + MU
S = ₱120 + ₱24
S = ₱144
The selling price of the roses will be ₱144.
In order to compute for the mark – down and the mark – down rate, we are
going to use the following formula:
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Mark – down = Original Price – Selling
Price Note:
MD
MD = OP
1. Mr. Dap was able to buy a cellphone at ₱11,500 which was originally sold at
the price of ₱13,700. How much was the mark – down of the cellphone?
Compute for the mark – down rate.
OP = ₱13,700
Given:
S = ₱11,500
MD = OP – S
MD = ₱13,700 – ₱11,500 MD
= ₱2,200
Solution:
MD = MDOP
₱2,200
MD =₱13,700
MD = 0.1606 x 100%
MD = 16.06%
The mark – down rate of the price of the
Conclusion: cellphone is 16.06%.
2. Carol wanted all her perfume products be sold out and decided to lower her
price to a 15% mark – down from the original price of ₱220. How much is her
mark – down? What will be her selling price?
MD = 15% = 0.15
Given:
OP = ₱220
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MD
Since MD= OP. We have,
MD= MD x OP
MD=15% x ₱220
MD= ₱33
Since MD = OP – S,
We have,
S = OP – MD
S = ₱220 – ₱33
S = ₱187
The selling price of the perfume now will be
Conclusion:
₱187.
What’s More
Now, to allow you to understand deeper the lessons that we have discussed in
this module, let us have the following activities.
Direction: Complete the table by solving for the cost, selling price, mark-up, markup
based on cost or mark-up based on selling price using the given data.
1. ₱365 ₱300
2. ₱600 ₱120
3. ₱120 ₱100
5. ₱315 52%
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Direction: Complete the table by solving for the original price, selling price,
markdown, or mark-down rate using the given data.
Original Price Selling Price Mark-down Mark-down Rate
1. ₱320 ₱280
2. ₱300 20%
3. ₱644 ₱84
4. ₱800 ₱320
5. ₱625 ₱575
Direction: Using the given data, complete the table by identifying the product
commonly sold and the season or event when the product is sold. Also,
solve for the selling price, new selling price or mark-on.
Selling New Selling
Product Season/ Event Mark-on
Price Price
1. Bouquet of
₱275 ₱125
roses
Opening of
2. Classes
₱50 ₱35
4. Candles ₱15 ₱5
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What I Have Learned
4. How does mark-up, mark-down and mark-on differ from each other?
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
What I Can Do
Let us power up our learning by applying it to our real-life situations. Solve the
following problems using the concepts that you have learned in this module.
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Activity 6: Apply the Mark
Direction: Solve the following real-life problems. Show your solutions and write your
answer in the box provided.
1. Jenny is selling her guitar for ₱3,120 at The Bazaar. When she bought her guitar,
its cost was ₱2,750.
2. Tita Len’s Grocery Store sells fruit cocktail for ₱210 per 1kg can. However, Tita
Nel’s Grocery Store sells the same fruit cocktail for ₱172 per 1kg can.
3. Fiona inherited a flower shop from her grandmother this January. Her
grandmother sells roses which costs ₱300/dozen upon delivery from the Rose
Farm with a 20% mark-up based on cost.
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b. Valentine’s season is coming and
Fiona knew that buyers will choose
to buy roses. She decided to
increase the price with another
₱120 mark-on from the selling
price. How much will be her new
selling price?
4. A sports center sells a badminton racket at a mark-up of 30% of the selling price.
The selling price on a specific brand is ₱450.
Assessment
Now, let us test what you have learned from the very start of our lesson.
Direction: Read carefully and answer the questions below. Encircle the letter of the
correct answer.
1. Which of the following results when we subtract mark-up from all the
operating expenses?
a. profit
b. loss
c. mark-on
d. mark-down
2. A product originaly costs ₱50 and is now sold with 50% increase. How much
is the selling price?
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a. ₱25
b. ₱50
c. ₱75
d. ₱100
5. Bagyong Tiktok has ruined some of Aling Nena’s coconut plantation which is
the only seller of coconut in their barrio. What can the sellers of buko halohalo
impose on their product?
a. margin
b. mark-up
c. mark-on
d. mark-down
6. Which of the following mathematical equations can we use to solve for the
new selling price when there is a mark-on?
a. NP = MO + S
b. NP = S – MU
c. NP = MO – S
d. NP = S – MO
7. Sellers lower their prices when they want to sell out old stock of products.
What do we call this price reduction?
a. mark-down
b. mark-on
c. mark-up
d. margin
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c. The item is perishable and it needs to be disposed
d. Competition against other sellers of the same product
9. Len’s cookies cost ₱12 each however, she sold each of her cookies for ₱10.
What did she incur?
a. profit
b. cost
c. selling price
d. loss
13. What is the selling price of a cap that costs ₱100 with a mark-up rate of
75%??
a. ₱125.00
b. ₱150.00
c. ₱175.00
d. ₱180.00
14. Since classes will be conducted online, Dims bought a cellphone worth
₱14,500. Her classmate, Richard, bought the same cellphone at the same
store last month but it cost him ₱18,800. How much is the mark-down of the
cellphone?
a. ₱4,300.00
b. ₱3,400.00
c. ₱4,500.00
d. ₱5,400.00
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15. On Valentine’s Day, Four sells roses for ₱180/bouquet. But on a regular day,
he sells them at ₱120/bouquet. How much is the mark-on he imposed?
a. ₱35.00
b. ₱50.00
c. ₱60.00
d. ₱75.00
Additional Activities
Job well done! Now, let us empower your knowledge and put into practice what
you have learned and making your dream come true.
Direction: Answer the questions that deal with applying what you have learned
in this module in your dream business. Assume that you are ready
for a big break in your business career as you start to build your
own company.
can.
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3. Advertise your product using a hashtag. ______________________________
9. On what peak season or event do you think your product will reach its
10. If you are to increase your selling price, by how much will it be?
_____________________________________________________________________
11. What are the reasons that you will impose mark-down on your product?
_____________________________________________________________________
12. By how much will you impose a mark-down? By how many percent will
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References
Business Mathematics Textbook, pp. 96-101
Teaching Guide for Senior High School Business Mathematics, pp.72-79
DISCLAIMER
This Self-learning Module (SLM) was developed by DepEd SOCCSKSARGEN
with the primary objective of preparing for and addressing the new normal.
Contents of this module were based on DepEd’s Most Essential Learning
Competencies (MELC). This is a supplementary material to be used by all
learners of Region XII in all public schools beginning SY 2020-2021. The
process of LR development was observed in the production of this module.
This is version 1.0. We highly encourage feedback, comments, and
recommendations.
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Regional Center, Brgy. Carpenter Hill, City of Koronadal
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