Senior High School

Business
Mathematics
Quarter 1 – Module 5:
Mark-on, Mark-up, and Markdown

Writer:
PATRICIA ANN M. QUIAMBAO
Special Science Teacher I - San Juan High School (Mexico)
Editors:
JANE P. VALENCIA, Ed.D. – EPS – Mathematics (CHAIRMAN)
CHARIZEL T. ARCILLA – SPST-I Malino National High School
JHOANNA S. MANALOTO – T-II San Juan High School (Mexico)
 What I Need to Know

This will give you an idea of the skills or competencies you are expected to learn in the
module.

After going through this module, you are expected to:

• differentiate mark – on, mark – up, and markdown; and
• obtain mark – on, mark – up, and markdown given price of a product.

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.

Direction: Choose the letter of the correct answer. Write the letter that corresponds to your
answer on a separate sheet of paper. Show your solution. If some items are new to you,
choose the best answer based on your perception.

1. The original price of a pair of shoes is ₱ 2,560.00 and there is a mark down of 10%
because the shop is having a 3-day sale. How much will the shoes cost?
a. ₱ 256.00
b. ₱ 512.00
c. ₱ 2,048.00
d. ₱ 2,304.00

2. The cost of a T-shirt from the manufacturer is ₱450.00. If Jane wants a 30% mark-up,
how much will her selling price be?
a. ₱ 558.00
b. ₱ 585.00
c. ₱ 630.00
d. ₱ 645.00

3. Which of the following refers to the amount added to cost to arrive at the original
selling price?
a. Mark-on
b. Markdown
c. Mark-up
d. Mark-up cancellation

4. A retailer bought a computer game for ₱1,250.00. How much is the mark-up if the
mark-up rate is 40%?
a. ₱1,750.00
b. ₱ 1,500.00
c. ₱ 750.00
d. ₱ 500.00

5. Which of the following refers to the amount of sales minus the cost of goods sold?
a. Selling price
b. Original selling price
c. Gross margin
d. Cost

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 6. A student assistant bought an item for ₱ 520.00 but later decided to sell it at ₱
550.00. What is the % mark-up?
a. 0.0545%
b. 0.545%
c. 5.45%
d. 54.545%

7. An item costs ₱ 1,450.00. Assume an original selling price of ₱ 1,750.00. The selling
price was raised to ₱ 1,850.00. It was later on tagged to sell at ₱1,650.00. How much
is the mark-up cancellation?
a. ₱ 100.00
b. ₱ 200.00
c. ₱ 300.00
d. ₱ 400.00

8. Refer to the given on question 7. How much is the additional markup?

a. ₱ 100.00
b. ₱ 200.00
c. ₱ 300.00
d. ₱ 400.00

9. Which of the following refers to the purchase price of a product?

a. Cost
b. Markdown
c. Margin
d. Selling price

10. Which of the following refers to the reduction in the original selling price?
a. Cost
b. Markdown
c. Mark-on
d. Margin

For numbers 11 – 15, complete the table below. Write your answer on a separate sheet of
paper. Choose your answer from the box.

a. 94.44% b. ₱ 170.00 c. ₱ 546.25

d. 14.054% e. ₱ 71.25

Original Selling Price New Selling Price Markdown Markdown Rate

₱ 350.00 ₱ 180.00 11. ______________ 12. ______________
₱ 844.00 ₱ 740.00 ₱ 104.00 13. ______________
14. ______________ ₱ 475.00 15. ______________ 15%

3
 Lesson
Mark–on, Markdown, and
1 Mark–up

As you go through this lesson, think of these following questions: What does it mean to
mark-up a product? Why do traders add a mark-up to their products? When do traders decide
to reduce the prices of their products and why do they do that?

What’s In

Figuring out when you are making a profit is key to business success. A business
enthusiast should know important financial concepts to run his/her business. He/she
should also have an understanding of how inflation or deflation of prices can affect his/her
business as well as the customers. These terms or concepts that he/she should know are
what we call mark-on, mark-up, and markdown.

Let’s have a short review about your previous lessons by completing the table below.
Use a different sheet of paper for your solution and answer.

Fraction Decimal Percent Ratio

1 1. 20% 2.
5

3. 0.03 3% 4.

17 5. 6. 17:25
25

39 0.78 7. 8.
50

9. 10. 92% 23:25

4
 What’s New

Donuts for Sale!!!

The SSG officers of San Juan High School decided

to participate in their foundation day by selling donuts.
They agreed to order 100 donuts per day that cost ₱20.00
each. The group wanted an initial mark-up of 20% on the
first day of the event. (a) How much is the selling
price?

Since the sale was successful, they put an

additional mark-up of ₱ 6.00 for each donut on the
second day of the event. The new selling price is ₱30.00.

In the morning of the third day, the students who are buying the product are fewer
than the usual. They came up with a plan of markup cancellation. The donuts are now
tagged to sell at ₱ 26.00 each. (b) How much is the mark-up cancellation?

Before the event ends, they were given extra time to sell the remaining 30 donuts. To
immediately sell them out, they reduced the selling price from ₱ 26.00 to ₱ 18.00. The ₱ 8.00
reduction is termed as markdown.

What do you think of the group’s strategy in buying and selling? Do you think they were able
to gain profit from the event? Why or why not?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________

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 What is It

Cost
- refers to the price by which a product or an item was bought. In the example above, the
cost of a donut is ₱ 20.00.

Initial mark-up or mark-on

- refers to the amount added to cost to obtain the original selling price. If the SSG
officers wants to add a 20% mark-on to the item, then, the item will be sold for ₱ 24.00.
Cost………………………………… ... ₱ 20.00
Initial Mark-up or Mark – on….… + ₱ 4.00 → (20% of ₱ 20.00)
Original selling price …………….….. ₱ 24.00

Additional mark-up
- refers to the amount added to the original selling price to arrive at a new selling price.
In our example above, the SSG officers decided to increase the selling price by ₱ 6.00
which is the additional mark-up.
Original selling price………….. ₱ 24.00
Additional mark-up…………… + ₱ 6.00
New selling price ……………….. ₱ 30.00

NOTE: In our module, let’s refer to both mark-on/initial mark–up and additional
mark-up as “mark-up” only.

Mark-up cancellation
- refers to the decrease in the new selling price that does not reduce below the original
selling price. The SSG officers observed that in the morning of the third day, the new
selling price is not appealing to the customers anymore. That is why they decided to
decrease its price to ₱ 26.00.
New selling price……………..….. ₱ 30.00
Mark-up cancellation………… – ₱ 4.00
is still above the
Reduced selling price …….…….. ₱ 26.00 → original selling price
Original selling price ……………. ₱ 24.00

Markdown
- refers to the reduction in the original selling price. Traders usually do this to sell out the
remaining products or items that were not sold in a specific period of time. Just like what
happened on the example given above, since there were 30 remaining donuts, the officers
reduced the price below the original selling price from ₱ 24.00 to ₱ 18.00.
Markdown = Original selling price – New reduced selling price

= ₱ 24.00 – ₱ 18.00
= ₱ 6.00
NOTE: Original selling price is similar to Old selling price when we are talking about
markdown.

6
 The markdown rate is usually expressed as a percent of the new reduced selling price.
Let’s use the example above.

Old selling price ………………………. ₱ 24.00

New reduced selling price……………. ₱ 18.00

Markdown……………………………….. ₱ 6.00
Markdown
Markdown rate = x 100
New Reduced Selling Price
(% of new reduced
selling price) 6.00
= x 100
18.00
1
= x 100
3

= 0.3333 x 100
Markdown rate based on the
= 33.33 % →
new reduced selling price

NOTE: The markdown rate can also be expressed as a percent of the old selling price.
If that is the case, you may want to use the formula below:
Markdown
Markdown rate = x 100
Old Selling Price

What’s More

Activity 1. Warm up.

Answer the following questions. Write your solution and answer on a separate sheet of paper.
1. If a ballpen sells for ₱ 20.00 and has a mark-up of ₱ 3.25, how much is the cost of the
item?

2. A watch costs ₱ 1,200.00. The original selling price is ₱ 1,450.00. The selling price was
raised to ₱ 1,600.00. After a year, it was tagged to sell at ₱ 1,300.00.
a. How much is the mark-on?
b. How much is the additional mark-up?
c. How much is the markdown?

3. A laptop is on sale at 30% off. The original price is ₱ 16,800.00. How much is the new
price?

Activity 2. Get going!

Answer the following. Write your solution and answer on a separate sheet of paper.
1. Find the amount of markdown and markdown rate based on new SP:
a. Original SP = ₱ 510.00 New SP = ₱ 430.00
b. Original SP = ₱ 1,630.00 New SP = ₱ 1,020.00

2. Compute for the New SP and markdown rate based on old SP:
a. Original SP = ₱ 380.00 markdown = ₱ 50.00
b. Original SP = ₱ 2,780.00 markdown = ₱ 350.00
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 3. Compute for the Original SP and new SP:
a. Markdown = ₱ 270.00 markdown based on New SP = 15%
b. Markdown = ₱ 180.00 markdown based on Old SP = 9%

Activity 3. Be Challenged!
Answer the following questions. Write your solution and answer on a separate sheet of paper.
1. A business owner used an initial mark-up of 25%. Find the original selling price of a
pair of shoes that costs ₱ 2,785.00.

2. Annie sold her old smartphone for ₱ 12,500.00 at 10% markdown rate based on the
new selling price. Find the markdown and the original cost of the smartphone.

3. Aiden bought an item that costs ₱ 1,700.00. He decided to sell it with 55% mark-up.
How much is the selling price?

4. Miya wants to buy a dress with a selling price of ₱ 1,500.00. When she goes to the
store the second time, she found that the dress was tagged to sell at ₱ 950.00 only.
How much is the markdown?

5. Mina’s boss asks her to price a refrigerator that costs ₱ 18,695.00. She knows her
boss wants an initial mark-up of 35% on the cost. How much is the selling price?

What I Have Learned

For the lesson summary, answer the following questions based on the discussion. Write your
answer on a separate sheet of paper.
1. What is cost?

2. What is the other term used for mark-on?

3. Differentiate mark-on and mark-up.

4. Differentiate mark-up cancellation and markdown.

What I Can Do

Odette is planning to buy a computer tablet. She went to two different stores that sell
the same model of tablet. Both tablets are on sale, but they have different selling price and
markdown rates. Help Odette decide which store she can save more.

Store A The tablet is 25% off of the regular price. If Odette buys the tablet
today, she will receive an additional 5% off of the discounted price.
The regular price is ₱ 15,990.00.

Store B The tablet is 20% off of the regular price. If Odette buys the tablet
today, she will receive an additional 4% off of the discounted price.
The regular price is ₱ 15,000.00.

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 1. How much money will Odette save if she buys from Store A? Store B?
2. What are the sales price of the tablet for both stores?
3. What is the difference of the discounted price of the two stores?
4. Which store has the better offer for the selling price of the tablet?

Assessment

Directions: Multiple Choice. Choose the letter of the best answer. Write the chosen letter on
a separate sheet of paper.

1. An electric fan, originally priced at ₱ 995.00, is marked 25% off. What is the sale
price?
a. ₱ 248.75
b. ₱ 284.75
c. ₱ 710.25
d. ₱ 746.25
2. Phoebe wants to add a 10% mark-on on the item that costs her ₱870.00. How much
will her selling price be?
a. ₱ 87.00
b. ₱ 783.00
c. ₱ 957.00
d. ₱ 8,700.00

3. A bicycle retailer used an initial mark-up rate of 35%. Find the original selling price of
a bicycle that costs the retailer ₱ 5,495.00.
a. ₱ 1,923.25
b. ₱ 3,571.75
c. ₱ 7,418.25
d. ₱ 9,341.50

4. Rachel is a retailer of e-bikes. She used an initial mark-up of 45% on all her items.
After sometime, she decided to put an additional mark-up ₱ 985.00. How much is the
selling price of an e-bike that costs her ₱19,500.00?
a. ₱ 29,260.00
b. ₱ 28,275.00
c. ₱ 27,290.00
d. ₱ 8,775.00

5. Refer to question number 4, how much is the mark-on of the e-bike?

a. ₱ 7,790.00
b. ₱ 8,775.00
c. ₱ 9,760.00
d. ₱ 9,830.00

6. If a phone is sold for ₱ 13,990.00 and has a mark-up of ₱ 750.75, how much is the
cost of the phone?
a. ₱ 14,740.75
b. ₱ 14,470.75
c. ₱ 13,329.25
d. ₱ 13,239.25

7. Monica and Ross bought an item that is marked ₱ 350.00 off. If the new selling price is
₱ 1,245.00, what is markdown rate based on the new selling price?
a. 29.11%
b. 28.11%
c. 21.94%
d. 20.94%

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 8. Chandler wants to buy a laptop and the price was ₱ 25,985.00. When he goes back to
the store, he found that the item was marked down by 15%. What is the new price?
a. ₱ 22,087.25
b. ₱ 20,287.25
c. ₱ 3,897.75
d. ₱ 3,798.75

9. Gunther has an old scooter. He wants to sell it for 45% off the current price, which is
₱ 33,700.00. How much money would he receive in exchange for the scooter if he were
able to sell it at that rate?
a. ₱ 48,865.00
b. ₱ 23,835.00
c. ₱ 18,535.00
d. ₱ 15,165.00

10. Janice makes donuts for ₱ 30.00 each. If she wants a 60% mark-up on the cost, how
much is the price of each donut?
a. ₱ 18.00
b. ₱ 19.50
c. ₱ 48.00
d. ₱ 49.50

For items 11 – 13, refer to the problem below.

Frank is a retailer of TV. One item costs ₱ 22,235.00. He decided to put a mark-on of ₱
1,875.00. After a month he noticed that the product is not selling well. As a result, he
decided to reduce the price by ₱ 750.00.

11. How much is the new selling price of the item?

a. ₱ 21,485.00
b. ₱ 23,360.00
c. ₱ 24,110.00
d. ₱ 24,860.00

12. What is the exact term for ₱ 750.00?

a. Markdown
b. Mark-on
c. Mark-up
d. Mark-up cancellation

13. What is the original selling price?

a. ₱ 21,485.00
b. ₱ 23,360.00
c. ₱ 24,110.00
d. ₱ 24,860.00

14. A computer package costs ₱ 11,099.00. The trader has a 7% mark-on. How much
would you pay to own the package?
a. ₱ 11,875.93
b. ₱ 11,975.93
c. ₱ 12,875.93
d. ₱ 12,975.93

15. Ben adds 140% markup to a pair of shoes. If it originally costs ₱ 1,575.00, how much
would a customer pay for the item?
a. ₱ 1,795.50
b. ₱ 2,205.00
c. ₱ 3,780.00
d. ₱ 4,650.00

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 Additional Activities

Activity 1.
Solve what is missing from letters A-E. Then, shade the letter that resembles to the given.
Solution and answer must be written on a separate sheet of paper.

1. Given: ₱ 1,500.00

A
A B
A C
A
●Cost: ₱980.00
●Old SP: ₱4,000.00 ●Original SP: ₱1,950.00
●Mark-on: 30% of cost
●Markdown rate based ●Mark-on: 30%
●Mark-up: ₱250.00
on Old SP: 37.5% ●Cost: _________
●Mark-up cancellation:
●Markdown: ______
₱50.00
●Selling price:______

D
A E
A

●Markdown: 300.00
●Cost: ₱1,300.00
●Markdown rate based
●Mark-on: 20%
on New SP: 20%
●Original SP: _______
●New SP: _______

2. Given: ₱ 1,000.00

A
A B
A C
A

●Original SP: ₱1,125.00 ●Cost: ₱800.00 ●Markdown rate based

●Markdown: ₱125.00 ●Mark-on: 20% on New SP: 47.6%
●New SP: ________ ●Original SP: _______ ●New SP: ₱2,500.00
●Markdown: __________

D
A E
A

●Markdown: ₱275.00 ●Mark-on rate: 12.5%

●Markdown rate based ●Cost: ₱8,000.00
on Original SP: 27.5% ●Mark-on: _______
●Original SP: _________

11
 3. Given: ₱ 500.00

A
A B
A C
A

●Original SP: ₱750.00 ●Markdown: ₱250.00 ●Markdown rate based

●Markdown: 150.00 ●Markdown rate based on Original SP: 8%
●New SP: _______ on New SP: 42% ●Original SP: ₱6,250.00
●New SP: ________ ●Markdown: ________

D
A E
A

●Cost: ₱380.00
●Cost: ₱3,125.00
●Mark-on: ₱50.00
●Mark-on rate: 16%
●Original SP: ₱430.00
●Mark-on: ________
●New SP: ₱460.00
Mark-up: _______

Activity 2.

Direction: Complete the table below. Write your solution and answer on a separate sheet of
paper. (Note: Markdown rate is based on the New Selling Price for this activity.)

Original SP New SP Markdown Markdown Rate

₱ 350.00 ₱ 270.00 1. ________________ 2. ________________

3. ________________ ₱ 700.00 4. ________________ 15%

₱ 2,375.00 5. ________________ ₱ 750.00 6. ________________

7. ________________ ₱ 1,340.00 ₱ 180.00 8. ________________

9. ________________ 10. ______________ ₱ 500.00 25%

12
Activity 3.
Solve the following to find out the missing. Choose your answer from the given choices by
writing ♪ or ♫. Write your solution and answer on a separate sheet of paper.

1.
♥Cost: ₱ 480.00 ♪ T-shirt
♥Initial mark-up: 10% ₱ 578.00
♥Additional mark-up:
₱ 50.00 ♫ Pants
♥Selling price: _______ ₱ 528.00

2.
♥Initial mark-up: ♪ Bag
375.00 ₱ 3,495.00
♥Original SP:
3,870.00 ♫ Shoes
♥Cost: _________ ₱ 4,245.00

3.
♥Cost: ₱19,300.00
♥Original SP: ♪ Laptop
₱25,090.00 ₱22,990.00
♥Mark-up
♫Cellphone
cancellation:₱2,500.00 ₱22,590.00
♥New SP: _________

4.
♪ Table Set
♥Cost: ₱ 9,998.00 ₱11,497.70
♥Mark-on: 15%
♥Selling price: _______ ♫ Aircon
₱11,999.50

5.
♥Cost: ₱ 1,211.00 ♪ Stove
♥Mark-on: 40% ₱ 2,340.50
♥Mark-up: ₱ 750.00 ♫ Oven
♥New SP: ________ ₱ 2,445.40

13
 14
I. What I Know ACTIVITY 3. 1. ACTIVITY 2.
1) D, 2) B, 3) A, 4) C, 5) C, 1) ₱3481.25, 2) ₱1250, 2. 1) ₱80
6) A, 7) A, 8) A, 9) A, 10) ₱13750, 3) ₱2635, 4) ₱550 3. 2) 29.63%
B, 11) B, 12) A, 13) D, 14) 5) ₱25238.25 4. 3) ₱805
C, 15) E 5. 4) ₱105
IV. What I Can Do 6. 5) ₱162
1) A = ₱4597.125, B = 7. 6) 46.15%
II. What’s In 8. 7) ₱1520
3 ₱3480, 2) A = ₱11392.875
1) 0.20, 2) 1:5, 3) 100
, 4) 9. 8) 13.43%
B = ₱11520, 3) ₱127.125,
3:100, 5) 0.68, 6) 68%, 7) 9) ₱2500
23
4) Store A 10) ₱2000
78%, 8) 39:50, 9) , 10)
25
0.92, 11) ₱3384, 12) 13%, V. Assessment ACTIVITY 3.
13) ₱2548, 14)70%, 15) 1) D, 2) C, 3) C, 4) A, 5) B, 1) ♪
₱4127 6) D, 7) B, 8) A, 9) C, 10) 2) ♪
C, 11) B, 12) D, 13) C, 14) 3) ♫
III. What’s More A, 15) C 4) ♪
ACTIVITY 1. 5) ♫
1) ₱16.75, 2) a. ₱250, b. VI. Additional
₱150, c. ₱150, 3) ₱11760
ACTIVITY 2. Activities
1) a. ₱80, 18.60%; b. ACTIVITY 1.
₱610, 59.80%; 2) a. ₱330, 1) B, C, E
13.16%; b. ₱2430, 2) A, D, E
12.59%; 3) a. ₱2070, 3) C, D
₱1800; b. ₱2000, ₱1820
Answer Key
 Development Team of the Module

Writer: PATRICIA ANN M. QUIAMBAO – SPST-I San Juan High School (Mexico)
Editor: JANE P. VALENCIA, Ed.D. – EPS – Mathematics
Reviewer: JANE P. VALENCIA, Ed.D. – EPS – Mathematics
CHARIZEL T. ARCILLA – SPST-I Malino National High School
JHOANNA S. MANALOTO – T-II San Juan High School (Mexico)
Illustrator: PATRICIA ANN M. QUIAMBAO – SPST-I San Juan High School (Mexico)
Layout Artist: PATRICIA ANN M. QUIAMBAO – SPST-I San Juan High School (Mexico)
Language Reviewer:

Management Team

ZENIA G. MOSTOLES, Ed.D., CESO V, Schools Division Superintendent

LEONARDO C. CANLAS, Ed.D., CESE. Asst. Schools Division Superintendent
ROWENA T. QUIAMBAO, CESE, Asst. Schools Division Superintendent
CELIA R. LACNALALE, Ph.D., CID Chief
JANE P. VALENCIA, Ed.D., Education Program Supervisor, Mathematics
JUNE E. CUNANAN, Education Program Supervisor/ Language Editor
RUBY M. JIMENEZ, Ph.D., Education Program Supervisor, LRMDS