11

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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Development Team of the Module

Writer: Sara Mae Butaslac

Editor: Joecel Rubinos, Chery Lou F. Bacongco
Reviewers: Zaida N. Abiera, Floramae A. Dullano
Illustrator: Sara Mae Butaslac
Layout Artist: Sherwin P. Uy
Cover Art Designer: Ian Caesar E. Frondoza
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Gilbert B. Barrera – Chief, CLMD
Arturo D. Tingson Jr. – REPS, LRMS
Peter Van C. Ang-ug – REPS, ADM
Jade T. Palomar – REPS, Mathematics
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E-mail Address: [email protected]
 11

Business
Mathematics
Quarter 1 – Module 5:
Mark-up, Mark-on and
Mark-down
Introductory Message
For the facilitator:

Welcome to the Business Mathematics for Grade 11 Self-Learning Module (SLM) on

Mark-up, Mark-on and Mark-down!

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:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guid ing the learners.

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.

For the learner:

2
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.

This module has the following parts and corresponding icons:

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 is It This section provides a brief discussion of the lesson. This

aims to help you discover and understand new concepts and skills.

What’s More This comprises activities for independent practice to

solidify your understanding and skills of the topic. You may check the
answers to the exercises using the Answer Key at the end of the module.

What I Have Learned This includes questions or

blank sentence/paragraph to be filled in to process what you
learned from the lesson.

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.

Assessment This is a task which aims to evaluate your level of mastery

in achieving the learning competency.

Additional Activities In this portion, another activity will be given to

you to enrich your knowledge or skill of
the lesson learned. This also tends retention of
learned concepts.

3
 Answer Key This contains answers to all activities in the
module.

At the end of this module you will also find:

References This is a list of all sources used in

developing this module.

The following are some reminders in using this 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!

What I Need to Know

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.

4
 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.

Specifically, you are expected to:

1. define mark-up, mark-on and mark-down;
2. differentiate mark-up, mark-on and mark-down; and
3. solve problems involving 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.

Direction: Encircle the letter of the correct answer.

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%

3. What is the sum of the mark-up and the cost price?

a. cost
b. loss
c. profit

5
 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

5. When should you NOT impose mark-on on your product?

a. During Christmas Holiday
b. When a calamity has recently hit the area
c. When you need to sold out all your products
d. When there is a limited supply for raw materials

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

8. Which among the following situations does NOT encourage businessmen to

impose mark-down on their products?
a. Seasonal demands
b. Poor-sales of a product
c. The item is perishable and it needs to be disposed
d. Competition against other sellers of the same product

9. What do we call a mark-down on a product that sometimes results to a

negative profit?
a. cost
b. loss
c. profit
d. selling price

6
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.

12. Which of the following statements is ALWAYS true?

a. Mark-on should be large enough to earn bigger.
b. Mark-down should be large enough to gain profit.
c. Mark-up should be equal to the sum of all the expenses.
d. Mark-up should be sizable enough to cover the expenses.

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

7
 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

In the previous modules, you have learned how to simplify fractions by

performing the fundamental operations, to solve problems with its practical
applications and to express fractions and decimals to percent and vice-versa. Now,
let us review your knowledge in computing the base, rate and portion.

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.

8
Example:

Let’s have the

following examples!

A. Identifying the base, rate and portion.

Given Problem Base Rate Portion

1. 50% of 400 is 200. 400 50% 200

2. 50 is 20% of 250. 250 20% 50

3. 23% of ₱365.00 is ₱83.95 ₱365.00 23% ₱83.95

B. Identifying the given and solving for the unknown.

1. 12 is what part of 40?

B = 40
Given:
P = 12
P
Formula: R=
B
P
R=
B

Solution: R=
R = 0.3 x 100%
R = 30%

2. 28 is 70% of what number?

9
 R = 70% = 0.70
Given:
P = 28
P
Formula: B=
R
P
B=
R
28
Solution:
B=
0.70
B = 40

3. 60% of 320 is what number?

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

Sara spent ₱600 for her books which is 35% of

Conclusion:
₱5,000.

2. There are 462 boys currently enrolled in Grade 11 in a certain school.

This represents 35% of the total population of the Grade 11 students.
How many Grade 11 students are enrolled in this school?

P = 462 P
Given: R = 35% = 0.35 Formula: B =
R

10
 P
B=
R
462
Solution:
B=
0.35
B = 1, 320

Conclusion: There are 1,320 students currently enrolled.

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

11
 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!

Activity 1. Income Up, Income Down

Direction: Analyze if the following situations illustrate an increase or decrease in

income. If the problem illustrates an increase in income, draw a heart in
the column with a happy face. If the problem illustrates a decrease in
income, draw a heart in the column with a sad face. After identifying,
write the amount of increase or decrease. The first number is done for you.

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

12
 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

SELLING PRICE = Cost Price + Operating Expenses + Profit

𝑺=𝑪+𝑬+𝑷

Where, S = Selling Price

C = Cost Price
E = Operating Expenses
P = Profit

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).

(i) Mark – up = Operating Expenses + Profit

𝑀𝑈 = 𝐸 + 𝑃

13
 (ii) Mark – up = Selling Price - Cost

𝑀𝑈 = 𝑆 – 𝐶

Study the following examples!

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:

1) How much should be her mark – up?

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

Conclusion: The mark – up price is ₱30 for each bag.

2) How much is the selling price?

Cost = ₱100
Given: Expenses = 12% of ₱100
Profit = 18% of ₱100

S = C + MU
Solution: S = ₱100 + ₱30
S = ₱130

Conclusion: Sara should sell the bag at ₱130 each.

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:

14
 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:

Study the following examples!

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

First, let us solve for the mark-up.

MU = S – C
MU = ₱3,150 – ₱2,150
MU = ₱1,000

Now, let us solve for rate of mark-up based on cost.

Solution: MU
M C= C
₱1,000
M C=
₱2,150
MC= 0.4651 x 100%
MC=46.51%

The jacket has a 46.51% mark-up based on

Conclusion:
cost.

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.

15
 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

The mark-up for the gym shorts is ₱52.50.

S = C + MU
S = ₱350 + ₱52.50
S = ₱402.50

The selling price of the gym shorts is ₱402.50

Conclusion:
which includes the mark-up of ₱52.50.

B. Mark-up Based on Selling Price

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:

Study the following examples!

16
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

First, let us solve for the mark-up.

MU = S – C
MU = ₱900 – ₱750
MU = ₱150

Now, let us solve for rate of mark-up based on cost.

Solution:
MU
MS=
S
₱150
MS=
₱900
MS= 0.1667 x 100%
MS=16.67%

The fruit blender has a 16.67% mark-up based

Conclusion:
on selling price.

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

17
 S = ₱585

The selling price of the drawing is ₱585 which

Conclusion:
includes the mark-up of ₱135.

II. Mark – on

At peak seasons such as Christmas Holidays and Valentine’s Day, some

businesses take advantage of these times by increasing the prices that are already
charged on their products. At some instances, a calamity that has recently hit an
area can also affect the price increase of some commodity as the supplies become
limited. This price increase is what we call mark – on.

In order to compute for the mark – on, we are going to use the formula below:

Mark – on = New Selling Price – Selling Price

𝑀𝑂 = 𝑁𝑃 – 𝑆

Study the following examples!

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?

Selling Price = ₱12

Given:
New Selling Price = ₱18

MO = NP – S
Solution: MO = ₱18 – ₱12
MO = ₱6

The mark – on of the banana cue amounts to ₱6.

Conclusion:

18
 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.

(ii) Since MO = NP – S, we have

NP = S + MO
NP = ₱144 + ₱15
NP = ₱159
Aling Pacing will sell the roses for ₱159 as its
Conclusion:
new selling price.

III. Mark – down

Sometimes, to be able to stand against competitors in the market, sellers tend

to lower the prices of their goods. For example, you decided to lower the price of your
cookie from ₱10 (original price) to ₱8 (selling price), the ₱2 reduction in the selling
price is called the mark -down. However, imposing mark – down may result to zero
profit.

A mark – down may either be temporarily or permanently. A temporary mark

– down is a reduction in the selling price of an item to encourage consumers to
increase their demand on a particular product. On the other hand, a permanent
mark – down is implemented by companies to remove a “poor-sale” product from
their inventory. In general, the purpose of markdown is either to generate sales or to
clear inventory.

In order to compute for the mark – down and the mark – down rate, we are
going to use the following formula:

19
 Mark – down = Original Price – Selling
Price Note:

𝑀𝐷 = 𝑂𝑃 – 𝑆 Multiply the answer by

100% since it will be
expressed as a percent.
Mark - down
Mark-down Rate =
Original Price

MD
MD = OP

Study the following examples!

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

The mark – down of the cellphone is ₱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

20
 MD
Since MD= OP. We have,

MD= MD x OP
MD=15% x ₱220
MD= ₱33

Solution: The mark-down amount of the perfume

products will be ₱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.

Activity 2: Mark Me Up!

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.

Cost Selling Price Mark-up MC MS

1. ₱365 ₱300

2. ₱600 ₱120

3. ₱120 ₱100

4. ₱162 ₱135 20%

5. ₱315 52%

Activity 3. Do Let Me Down!

21
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

Activity 4. Peak Me Up!

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

3. New Year ₱120 ₱155

4. Candles ₱15 ₱5

5. Toga ₱100 ₱138

22
 What I Have Learned

Activity 5. Tell Me How

Direction: Answer the following problems briefly and concisely.

1. How can you obtain the mark-up?

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

2. How can you obtain the mark-down?

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

3. How can you obtain the mark-on?

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

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.

a. How much is the mark-up

charged by Jenny?

b. What is the rate of mark-up based

on cost?

c. What is the mark-up based on the

selling price?

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.

a. How much is the difference

between the price of the two fruit
cocktails?

b. If Tita Len wants to have the same

price with Tita Nel’s, what should
be the mark-down rate of her
price?

c. Tita Nel wants her fruit cockatil to

be sold-out and decided to sell it
with a 5% lower price. What will be
her new selling price?

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.

a. How much is the selling price of a

dozen of roses ?

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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.

a. How much is the mark-up of the

badminton racket?

b. How much is the cost of the

badminton racket?

c. What is the rate of mark-up

based on cost?

d. If the store decided to lower the

price by 12%, what will be its
new selling price?

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

3. If Base is to Cost, then Principal is to what?

a. mark-up
b. mark-on
c. expenses
d. selling price
4. What do we call the additional increase in the price of a product during
holidays?
a. mark-on
b. mark-up
c. margin
d. selling price

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

8. Which among the following encourages retailers to impose mark-on in their

products?
a. Seasonal demands
b. Poor-sales of a product

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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

10. Which of the following statements is FALSE?

a. Mark-down is the decrease of price on a product.
b. Mark-up results to a positive profit in the business.
c. Mark-up is the decrease on the selling price of a product.
d. Mark-on is the increase of price on a product during peak season.
11. Shylla has a burger shop that sells burger for ₱55. How can she cover up her
expenses if she’s not earning enough and Tuna Festival is coming?
a. She can increase the price anytime she wants.
b. She can take advantage of the festival to earn more.
c. She should decrease the price and it will all be sold out.
d. She can sell more if her products are affordable.

12. Which of the following statements is NOT true?

a. Mark-on should be enough to earn profit.
b. Mark-down should be large enough to gain profit.
c. Mark-up should be sizable enough to cover the expenses.
d. Mark-up should be greater than the sum of all the expenses.

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.

Activity 7: The Tycoon in Me

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.

1. Name of your company: ______________________________________________

2. Draw in the box a prototype of your product. Make it as colorful as you

can.

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3. Advertise your product using a hashtag. ______________________________

4. How much is the cost of each product? _______________________________

5. How much is your mark-up for each product? ________________________

6. How much is your selling price for each product? _____________________

7. What is the mark-up rate based on your cost? ________________________

8. What is the mark-up rate based on your selling price? ________________

9. On what peak season or event do you think your product will reach its

highest demand? ____________________________________________________

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

it be from your selling price?

_____________________________________________________________________

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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.

For inquiries or feedback, please write or call:

Department of Education – SOCCSKSARGEN

Learning Resource Management System (LRMS)

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Regional Center, Brgy. Carpenter Hill, City of Koronadal

Telefax No.: (083) 2288825/ (083) 2281893

Email Address: [email protected]

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