11

Business
Mathematics
Quarter 1 – Week 7:
Profit and Loss
Introductory Message
For the facilitator:

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

Concepts of Buying and Selling!

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 guiding 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:

Welcome to the Grade 11 Business Mathematics Self-Learning Module (SLM) on Profit and
Loss

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:

This will give you an idea of the skills or

competencies you are expected to learn in the
module.

This part includes an activity that aims to check

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may decide to skip this module.

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

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

This section provides an activity which will

help you transfer your new knowledge or skill
into real life situations or concerns.

This is a task which aims to evaluate your level

of mastery in achieving the learning
competency into real life situations or concerns.

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 concerns.

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!
This module will help the learners to understand the basic knowledge about profit and loss
that we can use every day not only in school but also in daily life. For example, for a store
owner, if the value of selling price is more than the cost price of a commodity, then it’s a
profit and if the cost price is more than the selling price, it becomes a loss. Here, in this
module, we will stir up profit as well as loss concepts along with tricks to solve problems
based on it.

This module is covers only one lesson:

1. Profit and Loss

After going through this module, you are expected to:

1. Differentiate profit from loss (ABM_BM11BS-li-6), and
2. Illustrate how profit is obtained and how to avoid loss in a given transaction
(ABM_BM11BS-li-7).

Choose the letter of the best answer. Write the chosen letter on a separate sheet of paper.

1. Suppose a shopkeeper has bought 1 kg of apples for Php100. And sold it for
Php120/kg. How much is the profit he got?
A. Php 20
B. Php 120
C. Php 100
D. Php 2

2. A reseller paid Php3, 500 for 10 packs of beauty product. She sold each for Php330.
How much she lost?
A. Php3, 200
B. Php200
C. Php20
D. Php500

3. A man buys an electric fan for Php1000 and sells it at a loss of 15%. What is the
selling price of an electric fan?
A. Php1850
B. Php150
 C. Php1015
D. Php850
4. For the number 2 problem, calculate how much he lost.
A. Php850
B. Php15
C. Php150
D. Php1000

5. If a pen cost Php50 and sold it at the same price. Is there a gain?
A. Yes
B. No
C. Break-even
D. None of the above

Lesson Profit and Loss

For a shop owner, if the value of selling price is more than the cost price of a commodity,
then it’s a profit and if the cost price is more than the selling price, it becomes a loss. Here, in
this activity, let's help the storekeeper decide if he has grown or reduced his earning.
Stock No. Cost Price (Php) Selling Price (Php) Profit (Php) Loss (Php)
1 5, 000 6, 000
2 12, 000 10, 000
3 1, 800 2, 400
4 5, 400 7, 200
5 9, 100 8, 000
6 6, 200 6, 000
7 3, 300 4, 000
8 1, 100 1, 900
9 2, 300 2, 500
10 28, 000 25, 500

After doing the above activity let’s try to answer the questions below.
1. How do you find the activity?
___________________________________________________________________________
__________________________________________________________________________.
2. Were you able to find the difference between profit and loss?
___________________________________________________________________________
__________________________________________________________________________.
3. What mathematical concept/s did you use to find the unknown?
___________________________________________________________________________
__________________________________________________________________________.
4. What realization did you have with this activity?
___________________________________________________________________________
__________________________________________________________________________.

Profit and loss are used not only in mathematics but also in other fields of education like
economics and in business world to determine the price of a commodity in the market and to
understand how profitable a business is. Every product has a cost price and selling price.
Based on the values of these prices, we can calculate the profit gained or the loss of money
for a particular product. The important terms covered here are selling price, cost of goods, net
sales, gross profit, etc.

Study the illustrative examples below.

Illustrative Example 1

Harry is engaged in a buy-and-sell business of perfumes. He bought ten boxes of perfumes.

Each box cost Php12, 000 and contains a dozen of perfume bottles. He is planning to sell one
perfume bottle at Php1, 500. What is his expected profit for the ten boxes of perfumes?

The ultimate goal of any business whether a retail or wholesale is to earn 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 ten boxes gives the profit.

Given: 10 boxes of perfumes containing a dozen of bottles

120 bottles bought by Harry
Php12, 000 = cost of each box
Php1, 500 = Selling Price of each perfume

Required Profit
To solve the problem, we compute first the cost of (10) (12) = 120 bottles.
Since each box cost Php12, 000 and Harry bought 10 boxes
Cost = 12, 000 (10) = Php120, 000

Harry can expect that the net sales he will get upon selling ten boxes consisting of 120 bottles
is:
Net Sales = 1,500(120) = Php180, 000

Thus, he has
Gross Profit = Net Sales – Cost of Goods Sold
= 180, 000 – 120, 000
= Php60, 000

The difference between what a merchant invests into business and what he receives in return is
called profit. To compute for profit, we use
Gross Profit = Net Sales – Cost of Goods Sold
where Net Sales is the amount of money received from selling goods and the Cost of Goods Sold 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 of Goods Sold – Net Sales
In the case when Net Sales is equal to the Cost of Goods Sold, we call such situation as break-
even.
Illustrative Example 2

A jewelry store owner decided to offer a 20% discount for a particular brand of jewelry
which sells at Php35, 000. By doing so, his average sales increased from 5 jewelries to 12
jewelries a day. If he bought one jewelry at a price of Php22, 000 from the supplier, by how
much was the daily profit increased or decreased upon offering such discount on the jewelry?

Solution:

We compute for the daily profit before and after the discount was offered.
Without the discount,
Gross Profit = 35, 000 – 22, 000
= Php13, 000
Gross Profit for selling 5 jewelries = 13, 000 (5) = Php65, 000

With 20% discount,

New Selling Price = 35, 000 – 0.2(35, 000) = Php28, 000
Gross Profit per jewelry = 28, 000 – 22, 000 = Php6, 000
Gross Profit for 12 jewelries = 6, 000 (12) = Php72, 000

Increase in daily profit = 72, 000 – 65, 000 = Php7, 000

Sometimes, a businessman experiences loss because of mismanagement, unfavorable market

conditions, change in trends for fashionable goods, release of new and advanced models for
appliance and electronic gadgets, and a lot more.

Illustrative Example 3

Kyla bought a dozen of netbooks for Php200, 000 with a discount of 5%. Half dozen was
sold at a price of Php18, 000 per unit. However, a new model of netbook became available in
the market, so he sold the remaining half dozen at Php12, 000 each unit. What was her profit
or loss?

Solution:

Cost of a dozen netbook = 200, 00 – 0.5(200, 000) = Php190, 000

Net Sales:
For 6 netbooks at Php18, 000 = 18, 000 (6) = Php108, 000
For 6 netbooks at Php12, 000 = 12, 000 (6) = Php72, 000
Total Net Sales = P180, 000

Since the cost is greater than the total net sales, therefore Kyla experienced loss.
Loss = Cost – Net Sales = 190, 000 – 180, 000 = Php10, 000
Now you already learned about profits and loss, let us try to answer the exercises below.
1. Zia bought two tablets at Php15, 490 each. She sold one of the tablets to her sister at
Php13, 500, while the other one was sold to her friend at Php16, 200. How much is
Zia’s profit or loss?

2. Ana went to Baguio and bought 20 jars of strawberry jam for Php3, 500 with 15%
discount. When she goes back to Laguna, she sold 10 of the jams for a total of Php1,
800 and the rest at Php185 each. How much profit or loss did Ana get?

The difference between what a merchant invests into business and what he receives in return
is called profit.
To compute for profit, we use Gross Profit = Net Sales – Cost of Goods Sold.
There are cases in which the Net Sales of goods is less than its cost, such difference is called
loss.
To compute for the loss, we use Loss = Cost of Goods Sold – Net Sales

1. If you were a businessman, what would you do to avoid loss?

2. Formulate at least 3 real-life problems involving profit and loss and then solve.
 A. Determine whether the following statement shows profit or loss situation. Write P for
profit and L for loss.
_____ 1. Anjo bought a marker at Php30 each and sold it for Php32.
_____ 2. Mary bought a scientific calculator at Php2, 000. When a new and upgraded model
was released after a year, she sold her scientific calculator for Php1, 000 to buy the new one.
_____ 3. A barbeque vendor gains Php700 for selling it at Php15 each.
_____ 4. The cost of 10 personalized mugs is Php2, 500.It was sold for Php180 each.
_____ 5. Jane bought a perfume at Php650 and decided to sell it to her sister for Php670.
B. Solve each of the following problems.
1. Raj purchased a bike for Php75, 000 and he sold it for Php55 000. Is it the condition
of profit or loss? Find How much profit or loss incurred by him.
2. John bought a laptop for Php28, 000. He later sold it for Php25, 000. How much is
John’s profit or loss?
3. Eva went to Quezon Province and bought 25 boxes of tikoy for Php2, 500 with 10%
discount. When she got back to Laguna, she sold 15 boxes for Php1, 650 and the rest
for Php110. How much profit did she earn?
4. A businesswoman buys smart phones at Php20, 000 each. Due to price fall in the
market, she was forced to sell them at a loss of 10%. Find the selling price of each
smart phones.
5. Mark buys an old motorcycle for Php15, 000 and spends Php5, 000 on its repairs. If
he sells the motorcycle for Php20, 000, How much is his gain or loss?

Learners will track their spending and earnings over a given period (probably a month will
do), taking into consideration income from allowances and job wages and expenses related to
transportation, food and entertainment. They will analyze their budget, looking for patterns in
their spending habits, and identify where they could reduce their expenses, whether by using
coupons or choosing less expensive recreational choices. Given their current spending habits,
students make projections for their financial future.
What I Know
1. A
2. B
3. D
4. C
5. C
What’s In
1. P – Php1, 000
2. L – Php2, 000
3. P – Php600
4. P – Php1800
5. L – Php1, 100
6. L – Php200
7. P – Php700
8. P – Php800
9. P – Php200
10. L – Php2, 500
What’s More
1. Php1, 280
2. Php675
Assessment
A.
1. P
2. L
3. P
4. L
5. P
B.
1. Loss – Php20, 000
2. Loss – Php3, 000
3. Php500
4. Php18, 000
5. Break-Even

References
https://byjus.com/maths/profit-and-loss/
https://www.mathstips.com/profit-loss/
https://www.mbacrystalball.com/blog/2015/09/11/profit-and-loss-problems-solutions/

MAY L. CABANTOG
Master Teacher II