Ramona S.

Trillana High School

SENIOR HIGH DEPARTMENT

Business
Mathematics
for Accountancy, Business, and
Management (ABM) Learners

Mr. Carlo T. Estrella

Objectives
Learning Competencies:
✓Define mark-on, markup and
markdown
✓Differentiate mark-on, markup and
markdown
✓Explain the reason for using mark-
on, markup and markdown
Preliminary
A customer buys three bananas
for PHP 25.00. How much does the
customer have to pay a dozen of
these bananas?

A. PHP 100 C. PHP 104

B. PHP 102 D. PHP 106
Preliminary

A typist can finish 4 pages in 6

minutes. How long will it take
him to finish 18 pages?

A. 27 mins C. 33 mins
B. 30 mins D. 36 mins
Preliminary
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?

A. 9 cups C. 11 cups
B. 10 cups D. 12 cups
Preliminary
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?
A. 8 workers C. 14 workers
B. 12 workers D. 16 workers
Preliminary
A supply of food lasts for a week
for 20 families. How long would
the supply last if 3 more families
must be supplied?

A. 2 days C. 10 days
B. 6 days D. 14 days
 Lesson

Buying and Selling

Mark-on, Markup, and
Markdown
 COST PRICE
The price that a company or store
has to pay for the goods it is going to
sell, it is also the price that has to be
spent to produce goods or services
before any profit is added.
In the local dialect, this is puhunan.
 OPERATING COST
The price (per unit) incurred
relative to the production and
sale of a commodity.

Ex.: rent, salaries and other

incidental expenses.
 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.
In the local dialect, this is
called kita.
 MARKUP
The amount by which the cost
is increased on a product to
arrive at the selling price.
In the local dialect, this is
referred to a tubo.
 MARKUP
Also, it is the amount that the
sellers add to earn from the
product they sell.
Businesses 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
expected profit may be
divided by the number of
items sold.
 To Compute the
Selling Price
S=C+E+P
Where: S = Selling Price
C = Cost Price
E = Operating Expenses
P = Profit
 To Compute the
Markup
MU= S – C
Where: MU = Mark-up
S = Selling Price
C = Cost Price
 To Compute the
Markup based on Cost
𝑴𝑼
𝑴𝑼% = 𝒙 𝟏𝟎𝟎
𝑪
PROFIT: Sales minus the cost
of goods sold

MARKUP: The amount by

which the cost is increased
on a product to arrived at
the selling price.
 Example
Aling Eang would like to sell a little keychain she
purchased for PHP 12 each. If the operating
expenses are set at 25% of the cost, she would like
to have a 15% profit on the cost of each item.
A. Determine the markup price for each
keychain
B. Help Aling Eang determine the selling price for
each keychain.
 SOLUTION
Example E = 25% of PHP 12
Aling Eang would like P = 15% of PHP 12
to sell a little keychain
she purchased for PHP 𝑴𝑼 = 𝑺 − 𝑪
12 each. If the But the given is the operating
operating expenses
expenses and the desired profit.
are set at 25% of the
Formula for selling price.
cost, she would like to
have a 15% profit on 𝑺=𝑪+𝑬+𝑷
the cost of each item.
A. Determine the 𝑴𝑼 = 𝑺 − 𝑪
markup price for 𝑴𝑼 = 𝑪 + 𝑬 + 𝑷 − 𝑪
each keychain 𝑴𝑼 = 𝑬 + 𝑷
 SOLUTION
Example E = 25% of PHP 12
Aling Eang would like P = 15% of PHP 12
to sell a little keychain
she purchased for PHP
12 each. If the
𝑴𝑼 = 𝑬 + 𝑷
operating expenses 𝑀𝑈 = 0.25𝑥12 + 0.15𝑥12
are set at 25% of the 𝑀𝑈 = 3 + 1.90
cost, she would like to
have a 15% profit on
𝑴𝑼 = 𝑷𝑯𝑷 𝟒. 𝟖𝟎
the cost of each item.
A. Determine the The markup is PHP 4.80
markup price for
each keychain
 SOLUTION
Example E = 25% of PHP 12
Aling Eang would like P = 15% of PHP 12
to sell a little keychain MU = 4.80
she purchased for PHP
12 each. If the
operating expenses
𝑴𝑼 = 𝑺 − 𝑪
are set at 25% of the 𝑆 = 𝑀𝑈 + 𝐶
cost, she would like to 𝑆 = 4.80 + 12
have a 15% profit on
the cost of each item. 𝑺 = 𝑷𝑯𝑷 𝟏𝟖. 𝟖𝟎
A. Determine the
markup price for Aling Eang should sell each
each keychain keychain at PHP 16.80.
 Example

A jacket that costs PHP 1,350 is

being sold at PHP 2,025. What
is the rate of markup based on
the cost?
 GIVEN
Example C = PHP 1,350
A jacket that S = PHP 2,025
𝑴𝑼
costs PHP 𝑴𝑼 = 𝑺 − 𝑪
𝑴𝑼% = 𝒙𝟏𝟎𝟎
𝑪
1,350 is being 𝑀𝑈 = 2025 − 1350 675
sold at PHP 𝑀𝑈% = 𝑥100
𝑀𝑈 = 675 1350
2,025. What is 𝑀𝑈 = 0.5𝑥100
the rate of The mark-up price 𝑴𝑼 = 𝟓𝟎%
markup based is PHP 675.
The jacket was marked-
on the cost? up by 50% based on the
cost price.
 Example
Julia buys a notebook for PHP 45.
She wanted to resell the
notebook by adding a mark-up
of 25% based on the cost. Find
the selling price and the markup.
 GIVEN
Example MU%= 25% = 0.25
Julia buys a C=PHP 45.00
notebook for PHP 𝑴𝑼 = 𝑴𝑼% 𝒙𝑪 𝑴𝑼 = 𝑺 − 𝑪
45. She wanted 𝑀𝑈 = 0.25𝑥45 Formulate the selling price
to resell the 𝑀𝑈 = 𝑃𝐻𝑃 11.25 𝑆 = 𝑀𝑈 + 𝐶
notebook by 𝑆 = 45 + 11.25
adding a mark- 𝑺 = 𝑷𝑯𝑷 𝟓𝟔. 𝟐𝟓
The mark-up price
up of 25% based
on the cost. Find is PHP 675.
The selling price of the
the selling price notebook is PHP 56.25
After identifying the
and the markup. markup, identify the which includes the
selling price. markup of PHP 11.25
 MARK-ON
It is the increase of
the prices already
pegged for their
commodities.
 MARK-ON
It happens on:
❑ A calamity that hits the
source of a raw material or
commodity therefore
affecting its supply.
 MARK-ON
It happens on:
❑Seasonal demands. Ex.
Christmas item,
Valentines, etc.
 MARK-ON
It happens on:
❑ Special occasion is being
celebrated. Ex.
Commemorative, death
anniv, etc.
 MARK-ON
To compute for Mark-on, subtract
the regular selling price from the
peak selling price.
𝑴𝑶 = 𝑷𝑺 − 𝑺
Where
PS = Peak Selling Price
S = Regular selling price
 Example
Manang Crising observes that market goers at Bigtie
Wet Market 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?
 GIVEN
Example MU%= 35% = 0.35
Based on the C=PHP 90.00 MO=PHP 10.00
situation, Manang 𝑴𝑼 = 𝑴𝑼% 𝒙𝑪 𝑴𝑶 = 𝑷𝑺 − 𝑺
Crising observed 𝑀𝑈 = 0.35𝑥90 Formulate the Peak Selling
that her 𝑀𝑈 = 𝑃𝐻𝑃 31.50 𝑃𝑆 = 𝑆 + 𝑀𝑂
galunggong The mark-up price is
suddenly becomes PHP 31.50. 𝑃𝑆 = 121.50 + 10
“in demand” so 𝑷𝑺 = 𝑷𝑯𝑷 𝟏𝟑𝟏. 𝟓𝟎
she decided to
add PHP 10 (this is 𝑆 = 𝑀𝑈 + 𝐶
This is now the price after
mark-on). At the 𝑆 = 31.50 + 90
adding the desire
same time, if a 𝑺 = 𝑷𝑯𝑷 𝟏𝟐𝟏. 𝟓𝟎 amount of Aling Crising
markup of 35% is Selling price imposing
of PHP 10.00.
being imposed. markup of 31.50
 Example
To know how
𝑴𝑼 Markup = 35%
many percent is 𝑴𝑼% = 𝒙𝟏𝟎𝟎
the additional 𝑪
31.50 + 10 46.11% − 35%
mark-on of 𝑀𝑈% = 𝑥90
90 = 𝟏𝟏. 𝟏𝟏%
Aling Crising 41.50
𝑀𝑈% = 𝑥100 The mark-up is
Cost Price (C) = 90 90 increased by 11.11%
Markup (MU) = 31.50 𝑀𝑈% = 0.4611𝑥100 by the additional pf
Mark-on (MO) = 10.00 𝑴𝑼% = 𝟒𝟔. 𝟏𝟏% PHP 10.00 imposed
The peak selling price was by Manang Crising
mark-up by 46.11%.
 Example
Santuario De Paz 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 Santuario De Paz
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?
 Example
Given:
Total Price: PHP 15,000 Identify the MU price Identify the selling
No. of items: 300 price
MU% = 45% = 0.45
Identify the unit price of the Unit Price = PHP 50 𝑺 = 𝑴𝑼 + 𝑪
rose 𝑆 = 22.50 + 50
𝑴𝑼 = 𝑴𝑼% 𝒙𝑼𝒏𝒊𝒕 𝑷𝒓𝒊𝒄𝒆 𝑺 = 𝑷𝑯𝑷 𝟕𝟕. 𝟓𝟎
𝑻𝒐𝒕𝒂𝒍 𝑷𝒓𝒊𝒄𝒆 𝑀𝑈 = 0.45𝑥50
𝑼𝒏𝒊𝒕 𝑷𝒓𝒊𝒄𝒆 =
𝑵𝒐. 𝒐𝒇 𝒊𝒕𝒆𝒎 𝑴𝑼 = 𝑷𝑯𝑷 𝟐𝟐. 𝟓𝟎 Each rose selling
1500
= price cost PHP 77.50
30 The MU price is PHP
= 𝑷𝑯𝑷 𝟓𝟎. 𝟎𝟎
22.50
Each rose cost PHP 50.00
 Example
Since the flowers are “in demand” Compute for the Peak Selling
during All Saint’s Day, a 25% Mark-on is
Price.
going to be applied . So get the 25% of
the selling price of PHP 77.50. 𝑴𝑶 = 𝑷𝑺 − 𝑺
Formulate the Peak Selling
MO% = 25% = 0.25 𝑷𝑺 = 𝑴𝑶 + 𝑺
S = PHP 77.50 𝑃𝑆 = 18.50 + 77.50
𝑷𝑺 = 𝑷𝑯𝑷 𝟗𝟎. 𝟔𝟓
𝑴𝑶 = 𝑴𝑶% 𝒙𝑺
𝑀𝑂 = 0.25𝑥77.50 Each rose sells for PHP 90.65 at
𝑀𝑂 = 𝑃𝐻𝑃 18.15 Santuario De Paz Flower Shop
The MO price is PHP 18.15. This is the During All Saint’s Day.
additional price during peak selling
season
 MARKDOWN
It is the difference
between the REGULAR
SELLING PRICE and SALE
PRICE.
 MARKDOWN
It happens when:
❑ The mall decides to sell
their items at cut down
prices to clear their
warehouse collection.
 MARKDOWN
It happens when:
❑ The item is a perishable
item and it is best to
dispose of it sooner than
simply throw it away
 MARKDOWN
It happens when:
❑ The item has become
dirty or worn out, or
possibly out of style.
 MARKDOWN
It happens when:
❑ Competition forces the
marking down of an
item.
 MARKDOWN
Markdown is computed by getting
the difference of Selling Price (S) and
Sale Price (SP)
𝑴𝑫 = 𝑺 − 𝑺𝑷
MD=Markdown
S=Selling Price
SP=Sale Price
 MARKDOWN
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.
 MARKDOWN
When an item is given a selling
price where the profit ends up
being zero, this said to be a
BREAK-EVEN PRICE (balik-
puhunan).
 Example
Carlo was able to buy a pair of shoes
regularly priced at PHP3,500 for only
PHP2,100.
a. What was the amount of the mark-
down?
b. b. What was the rate of the mark-
down?
 Example
Carlo was able to Given
buy a pair of shoes S = PHP 3,500
regularly priced at SP = PHP 2,100
PHP3,500 for only
PHP2,100. 𝑴𝑫 = 𝑺 − 𝑺𝑷
𝑀𝐷 = 3500 − 2100
a. What was the 𝑴𝑫 = 𝑷𝑯𝑷 𝟏, 𝟒𝟎𝟎
amount of the
mark-down?
 Example
Given
Carlo was able to MD = PHP 1,400
buy a pair of shoes S = PHP 3,500
regularly priced at
PHP3,500 for only 𝑴𝑫 The amount of
PHP2,100. 𝑴𝑫% = 𝒙𝟏𝟎𝟎 markdown is
𝑺 PHP 1,400
1400 which is
b. What was the 𝑀𝐷% = 𝑥100
3500 equivalent to a
rate of the 𝑀𝐷% = 0.4𝑥100 40% markdown.
markdown? 𝑴𝑫% = 𝟒𝟎%
 Example
During a Midnight Madness Sale, a
board game regularly priced at PHP
8,500 was sold at 55% discount.
a. What was the amount of the mark-
down?
b. How much is the sale price?
 Example
During a Midnight Given
Madness Sale, a board S = PHP 8,500
game regularly priced MD%= 55% = 0.55
at PHP 8,500 was sold
at 55% discount. 𝑴𝑫 = 𝑴𝑫% 𝒙𝑺
𝑀𝐷 = 0.55𝑥8500
a. What was the 𝑴𝑫 = 𝑷𝑯𝑷 𝟒, 𝟔𝟕𝟓
amount of the mark-
down?
 Example
During a Midnight Given
Madness Sale, a board S = PHP 8,500
game regularly priced MD = PHP 4,675
at PHP 8,500 was sold
at 55% discount. 𝑺𝑷 = 𝑺 − 𝑴𝑫
𝑆𝑃 = 8500 − 4675
a. What much is the 𝑺𝑷 = 𝑷𝑯𝑷 𝟑, 𝟖𝟐𝟓
sale price?
ACTIVITY
 ACTIVITY 1
Direction: Write Fact if the statement is correct, and Bluff if
otherwise.
1. Operating cost is the price (per unit) incurred relative to the production
and sale of a commodity
2. The formula for Mark-up Price is MU = E+P
3. The formula for Selling Price is S = C + MU
4. Businesses may opt to determine the cost price, operating
cost and profit per unit of commodity before computing the
selling price per unit.
5. 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.
 ACTIVITY 2
Directions: Identify whether the statement is a Markup (MU),
Markdown (MD) or Mark-on (MO).
1. It accounts for the cost of raw materials necessary to produce
the item being produced for sale.
2. It can be applied when there is a strong business competition.
3. It can be option for business owners when there is a calamity
4. difference between the selling price and the cost price
5. It can be considered during occasions like All Saint’s day
when the demand for flowers is expected to be high.
 ACTIVITY 3
Direction: Find the values of the missing variables which are
defined below: SHOW YOUR SOLUTION
S is the selling price ; P is the profit ; C is the cost price ; MU
is the markup ; E is the operating expenses

1. S=125, E=45, C= 60 P=?

2. S=250, C=185 MU=?
3. MU=500, C=1250, MU%=?
4. MU=15, C=85, S=?
5. E=16% of 85, P=5, MU?