BUSINESS

QUARTER 1 Week 5
MATHEMATICS

NAME: ____________________________________ YR & SEC: _____________________

Competencies
1. The learner differentiates Mark-on, Mark down, and Mark-up; and (ABM_BM11BS-Ig-1)
2. Obtains the Mark-on, Mark down, and Mark-up given price product. (ABM_BM11BS-Ih-2)
To the Learners
Before reading the module, I want you to set aside other tasks that will disturb you while
enjoying the lessons. Read the simple instructions below to enjoy each objectives of this module
effectively.
1. Read carefully all the contents and instructions indicated in every page of this module.
2. Take note the important concepts and formulas on your notebook.
3. Answer all the provided activities in the module.
4. Let your facilitator/guardian assess your answers using the answer key card.
5. Review the posttest and apply what you have learned.
Expectations
This module was designed to help you master how to differentiate and obtain the Mark-on,
Mark down and Mark-up given price product. After going through this module, you are expected to:
1. Define the Mark-on, Mark down and Mark-up;
2. Differentiate the Mark-on, Mark down and Mark-up;
3. Illustrate how the Mark-on, Mark down and Mark-up are obtained;
4. Determine the selling price with sale price or peak price of an item given existing conditions;
5. Compute for Mark-up and Mark down percentage of given commodities or services based
on stated conditions; and
6. Solve problems involving Mark-on, Mark down and Mark-up.
Pre-test
Choose the letter of the correct answer. Write the chosen letter on a separate sheet of paper.
1. What is the definition of mark on?
A. The difference between the selling price and down payment.
B. The difference of increased selling price and previous selling price.
C. The difference between decreased selling price and previous selling.
D. The difference between selling price of an article and the cost of the article includes the
operating expenses
2. After the school year, Cassie is considering reducing the price of a notebook.
If she wants to decrease its price from P30 to P21, what is the markdown rate?
A. 0.3% B. 0.7% C. 30% D. 70%
3. Which of the following is determined by the formula of peak selling price minus regular selling
price?
A. Mark on B. Operating Cost C. Selling Price D. Cost price
4. What is the percentage increase in the price if the old price of product is P100 and the new
price is P500?
A. 100% B. 200% C. 300% D. 400%
5. What is the decimal equivalent of 120%?
A. 0.12 B. 1.20 C. 11.20 D. 112.0
6. A jacket which costs P1 350 is being sold at P2 025. What is the rate of mark-up based on cost?
A. 30% B. 40% C. 50% D. 60
7. Find the cost of a box of pencils sold for P135 with 25% mark-up based on selling price.
A. P101.25 B. P101.52 C. P110.25 D. P110.52
8. What was the mark down rate of a sala set marked P8 000 offered for P5 600 at a closing-out
sale of Ace Furniture Co.?
A. 30% B. 23% C. 20% D. 40%
9. What is the money earned after the cost price and operating costs are accounted for after the
sale of a commodity?
A. Cost Price B. Operating Cost C.Profit D.Selling Price
10. What is the value of x for Mark down = x – Sale Price?
A. Cost Price B. Operating Cost C. Mark down D. Selling Price
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MATH 11 QUARTER 1 WEEK 5 P a g e 1 | 10
 Looking Back

Percentage Variations
1. To find the percentage increase or decrease, we multiply the base by the rate and add the product
to the base it if is an increase and subtract the product from the base if it is a decrease instead.

B + ((B)(R)) = Percentage of Increase

B - ((B)(R)) = Percentage of Decrease

Examples:
a. P120 increased by 12% is how much?

B R = P of increase
P120 + (P120 x 0.12) = P134.40
b.How much is a number which is 1/3 less than 5/7?

Percentage of decrease = R B
57 – (1/3 x 57) = 38
2. To compute for the rate of increase or decrease, find the difference between the two given values
and divide it by the original value. Convert the fraction to percent if it is needed.

𝑳𝒂𝒓𝒈𝒆𝒓 𝑽𝒂𝒍𝒖𝒆−𝑺𝒎𝒂𝒍𝒍𝒆𝒓 𝑽𝒂𝒍𝒖𝒆

Rate of Increase or Decrease =
𝑩𝒂𝒔𝒆 𝒐𝒓 𝑶𝒓𝒊𝒈𝒊𝒏𝒂𝒍 𝑸𝒖𝒂𝒏𝒕𝒊𝒕𝒚

Examples:
a. What percent more than 25 is 30?

R B = P
30−25 5
= = 20%
25 25
b. What part more than 45 is 50?

R B = P
50−45 5 1
= =
45 45 9

Introduction to the Topic

Differentiate and Obtain the Mark-on,

Mark Down and Mark-up Product

Settling on an appropriate selling price for company’s goods is a very important function in
business. The price must be attractive and acceptable to potential customers and enough to cover
expenses and provide the company with a reasonable profit.

In business, expenses are divided into two major categories: the cost of goods and operating
expenses. The cost of goods would be the cost of production in the view of the manufacturers, while
to a wholesaler or retailer, it is the price paid to a manufacturer for the merchandise. The operating
expense (or overhead expenses or overhead) includes all the other expenses required to operate the
business such as salaries, rent, utilities, maintenance, advertising, etc.

Mark-on
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 The difference between the selling price of an article and the cost of the article is called mark-
on. Mark on normally includes the operating expenses and the desired profit. Selling price or retail
price or tag price is the amount at which the retailer sells the goods to the consumer. Cost of goods
is the amount the retailer spends in buying the goods, which includes the cost of the goods and
buying expenses. The following enumerate the mark-on formulas:

Selling Price = Cost of goods + Mark-on

Cost of goods = Selling Price – Mark-on
Mark-on = Selling Price – Cost of goods
𝑀𝑎𝑟𝑘−𝑜𝑛
Mark-on Rate Based on Cost =
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠

Mark-on = Cost of Goods (Mark-on Rate Based on Cost)

𝑀𝑎𝑟𝑘−𝑜𝑛
Mark-on Rate based in Selling Price =
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒

Mark-on = Selling Price (Mark-on Rate Based on Selling Price)

The retail often prices the merchandise at a percent of increases based on what it cost them.
Others prefer to base mark-on selling price because they can state the mark-on rate at a smaller
percent.

Example 1: A retailer bought an electric fan for P500 and sold it for P600. State mark-on as a percent
of the cost and as a percent of the selling price.
Solution: Mark-on = Selling Price – Cost of Goods
= 600 – 500 = 100
𝑴𝒂𝒓𝒌−𝒐𝒏
a. Mark-on Based on Cost =
𝑪𝒐𝒔𝒕 𝒐𝒇 𝒈𝒐𝒐𝒅𝒔
𝟏𝟎𝟎
= = 0.2 or 20%
𝟓𝟎𝟎
𝑴𝒂𝒓𝒌−𝒐𝒏
b. Mark-on Based on Selling Price =
𝑺𝒆𝒍𝒍𝒊𝒏𝒈 𝑷𝒓𝒊𝒄𝒆
𝟏𝟎𝟎
= = 0.1667 or 16.67%
𝟔𝟎𝟎

Example 2: Convert a mark-on rate of 40% based on cost to a mark-on rate based on selling price.
Solution: a. Selling Price = Cost + Mark-on
= 100% + 40% = 140%
𝑴𝒂𝒓𝒌−𝒐𝒏
b. Mark-on Rate Based on Selling Price =
𝑺𝒆𝒍𝒍𝒊𝒏𝒈 𝑷𝒓𝒊𝒄𝒆

𝟒𝟎% 𝟎.𝟒𝟎
= =
𝟏𝟒𝟎% 𝟏.𝟒𝟎
= 0.2857 or 28.57%

Example 3: Convert a mark-on rate of 40% based on selling price to a mark-on rate based on cost.
Solution: If mark-on rate is based on selling price, then selling price is 100%.
Thus,
a. Cost = Selling Price – Mark-on
= 100% - 40% = 60%
𝑴𝒂𝒓𝒌−𝒐𝒏
b. Mark-on Rate Based on Cost =
𝑪𝒐𝒔𝒕
𝟒𝟎% 𝟎.𝟒𝟎 𝟐
= = = 66 %
𝟔𝟎% 𝟎.𝟔𝟎 𝟑

Example 4: Find the selling price of a school bag that cost P90 and marked-on by 20% of the cost.
Solution: a. Mark-on = Cost of goods (Mark-on rate Based on Cost)
= P 90 (20%) = P90 (0.20) = P18
b. Selling Price = Cost of goods + Mark-on
= P90 + P18 = P108
Example 5: Find the selling price of a school bag that costs P90 and is marked-on
by 20% of the selling price.

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Solution: a. Cost of Goods = Selling Price – Mark-on
= 100% - 20% = 80%
𝑴𝒂𝒓𝒌− 𝒐𝒏
b. Mark-on Rate Based on Cost =
𝑪𝒐𝒔𝒕 𝒐𝒇 𝑮𝒐𝒐𝒅𝒔
𝟐𝟎% 𝟎.𝟐𝟎
= =
0.25 or 25%
=
𝟖𝟎% 𝟎.𝟖𝟎
c. Mark-on = Cost of goods (Mark-on Rate Based on Cost)
= P90 (0.25) = P22.50
d. Selling Price = Cost + Mark-on
= P90 + P22.50 = P112.50

Mark down

Mark down is a price reduction from the original selling price of merchandise. The reduction
on the regular price of a product may have been brought by damaged goods, discontinued articles,
old stocks, and other events. Most mark downs should not be viewed as losses but as sales promotion
opportunities used to increase sales and profits. When sale was over, raising prices to the original
price is called as a mark down cancellation.

Mark down = Regular Price (Mark down Rate)

Sale Price = Regular Price – Mark down
Mark down
Mark down Rate =
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒

Sale Price
Regular Price =
100%−𝑀𝑎𝑟𝑘 𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒

Example 1: What is the mark down and the sale price on an antique jar that has a regular price
of P35 800 and is on sale for 26% off the regular price?
Solution: Given: Regular Price = P35 800 Mark down Rate = 26% or 0.26

a. Mark down = Regular Price (Mark down Rate)

= 35 800(0.26) = 9 308
b. Sale Price = Regular Price – Mark down
= 35 800 – 9 308 = 26 492

Thus, the mark down is P9 308 and the sale price is P26 492.

Example 2: A laptop which was marked down at 20% is on sale for P28 265. Find the regular price.
Solution: Given: Sale Price = P28 265 Mark down Rate= 20% or 0.20

Sale Price
a. Regular Price =
100%−𝑀𝑎𝑟𝑘 𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒
28 265 28 265 28 265
= == = = 35 331.25
100%−20% 80% 0.80

Thus, the mark down is P35 331.25.

Example 3: The brand dew cellphone with a selling price of P17 800 is to be sold for P16 474.
Find the mark down.
Solution: Given: Regular Price = P17 800 Sale Price = P16 474

a. Mark down = Regular Price – Sale Price

= 17 800 –16 474 = 1 326

Thus, the mark down is P1 326.

Example 4: Nicole has some dress in her boutique that have not sold. The selling price is P1 225
and she mark them down to P857. What percentage did she mark them down?
Solution: Given: Regular Price = P1 225 Sale Price = P857

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MATH 11 QUARTER 1 WEEK 5 P a g e 4 | 10
 Mark down 𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒−𝑆𝑎𝑙𝑒 𝑃𝑟𝑖𝑐𝑒
a. Mark down Rate = =
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒 𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒
1225−857 368
= = = 0.30 or 30%
1225 1225

Thus, the mark down rate is 30%.

Mark-up

Cost is the price a merchandising business or retailer pays for a product. Selling price or
retail price is the price for which a merchandising business or retailer sells a product to a customer.
The difference between selling price and cost is called mark-up. Mark-up is added to cost to cover
the operating expenses and provide a profit to the owners.

The mark-up can be expressed as a percent; the percent mark-up is called the mark-up rate.
It can be expressed based on cost, or it can be expressed on selling price. The mathematical formulas
of mark-up are as follows:

SP - Selling Price SP = C + M
C – Cost Mc = MRc (C)
M – Mark-up MsP = MRc (SP)
Mc – Mark-up on cost MRc =
𝑀𝑐
𝐶
MsP – Mark-up on selling price MsP
MRsP =
𝑆𝑃
MR – Mark-up rate
SP = C + (C (MRc))
MRc – Mark-up rate on cost
SP
MRsP – Mark-up rate on selling C=
1+𝑀𝑅

price
A. Selling Price

Example 1: A sign pen cost the store manager P69 and he marked it up another P5. What was the
selling price of the book?
Solution: Given: C = P69 M = P74

SP = C + M
= 69 + 5 = 74

Thus, the selling price of the sign pen is P74.

Example 2: A company pays P47 200 for a set of computer desktop. If the mark-up is 16% on the
cost, find the selling price.
Solution: Given: C = P47 200 MRSP = 16% = 0.16

SP = C + (C (MRc))
= 47 200 + (47 200 (0.16)) = 47 200 + 7 552 = 54 752

Thus, the selling price of the set of computer desktop is P54 752.

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B. Mark-up Value

Example 3: RFS Sports Inc. sells the home-gymnasium package for P175 000 and maintains a
mark-up of 37% on selling price. Find the mark-up value.
Solution: Given: SP = P175 000 MRSP = 37% = 0.37

MSP = MRSP (SP)

= (0.37)(175 000) = 64 750

Thus, the mark-up value is P64 750.

Example 4: The mini grocery purchases a bottle of soft drinks for P19.50 and sells it for P26.75.
What is his gross profit (mark-up)?
Solution: Given: SP = P26.75 C = P19.50

M = SP – C
= 26.75 – 19.50 = 7.25

Thus, the gross profit is 7.25.

C. Cost

Example 5: The refrigerator had a selling price of P24 792. It had been marked-up P1 248.
What was its cost?
Solution: Given: SP = P24 792 M = P1 248

C = SP – M
= 24 792 – 1 248 = 23 544

Thus, the cost is P23 544.

Example 6: A hot-and-cold water dispenser sells for P8 021.50. The mark-up on it

is 31.5% of cost. Find the cost.
Solution: Given: SP = P8 021.50 MR = 31.5% = 0.315

𝑆𝑃
C=
1+𝑀𝑅
8 021.50 8 021.50
= = = 6 100 Thus, the cost is P6 100.
1+0.315 1.315

D. Mark-up Rate

Example 7: A laser printer costing P8 750 is sold for P12 250. Find the mark-up rate based on cost.
Solution: Given: C = P8 750 SP = P12 250

𝑀𝑐 𝑆𝑃−𝐶 12 250−8 750

MRc = = = = 0.40 = 40%
𝐶 𝐶 8750

Thus, the mark-up rate on cost is 40%.

Example 8: A headset cost P369.60 and sell for P480. What is the percentage
of mark-up based on selling price?
Solution: Given: C = P369.60 SP – P480

𝑀𝑆𝑃 𝑆𝑃−𝐶 480−369.6

MRSP = = = = 0.23 or 23%
𝑆𝑃 𝑆𝑃 480

Thus, the mark-up rate on selling price is 23%.

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E. Equivalent Mark-up Percentages

A single item can have two different mark-ups, depending on the mark-up, selling price
and cost. To determine the equivalent mark-up for selling price and cost, we must apply the following:
a. If the percentage of mark-up on selling price is given; divide it by 100% minus itself to
determine the percentage of cost mark up.
b. If the percentage of mark-up on cost is given; divide it by 100% plus itself to determine the
percentage of selling price mark-up.
Thus, to solve the equivalent mark-up percentages using the formula:

% Selling Price Mark−up

% C Mark-up =
100%−%𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑀𝑎𝑟𝑘−𝑢𝑝

% Cost Mark−up
% SP Mark-up =
100%+ %𝐶𝑜𝑠𝑡 𝑀𝑎𝑟𝑘−𝑢𝑝

Example 9: If the mark up on an item is 25% of price, what percent is the mark-up on cost?
Solution: Given: % Selling Price Mark-up = 25%

% Selling Price Mark−up

% C Mark-up =
100%−%𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑀𝑎𝑟𝑘−𝑢𝑝
25% 25% 0.25
= = = = 0.333333….
100%−25% 75% 0.75

1
Thus, the percent mark-up on cost is 0.3333…. or 33 %
3

Example 10: If a shoulder bag is sold at 60% mark-up on cost, what is the percentage of mark-up
on selling price for that item?
Solution: Given: % Cost Mark-up = 60%

% Cost Mark−up
% SP Mark-up =
100%+ %𝐶𝑜𝑠𝑡 𝑀𝑎𝑟𝑘−𝑢𝑝
60% 60% 0.60
= = = = 0.375
100%+60% 160% 1.60

Thus, the percent mark-up on selling price is 0.375 or 37.5%.

Activities
Practice Activity:
1. A new electronic game cost P1 998 and was marked-up P980. What did it sell for?
2. An electric guitar with a cost P11 280 has a mark-up rate of 37%. Find the selling price.
3. An outboard motor costing P35 000 has a mark-up rate of 43%. Find the mark-up.
4. The retail selling price of a Mini Component is P22 152. If the mark-up is 42% of cost,
find the mark-up.
5. The bakery marks down day-old tasty bread form P52 to P39. What is the rate of mark
down?

Remember
The following enumerate the formulas
Mark-on
Selling Price = Cost of goods + Mark-on
Cost of goods = Selling Price – Mark-on
Mark-on = Selling Price – Cost of goods
𝑀𝑎𝑟𝑘−𝑜𝑛
Mark-on Rate Based on Cost =
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠

Mark-on = Cost of Goods (Mark-on Rate Based on Cost)

𝑀𝑎𝑟𝑘−𝑜𝑛
Mark-on Rate based in Selling Price =
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒

Mark-on = Selling Price (Mark-on Rate Based on Selling Price)

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MATH 11 QUARTER 1 WEEK 5 P a g e 7 | 10
 Mark down Mark-up

Mark down = Regular Price (Mark down Rate) Selling Price = Cost + Mark up
Sale Price = Regular Price – Mark down Mc = MRc (C)

Mark down Rate =

Mark down MsP = MRc (SP)
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒
𝑀𝑐
Sale Price MRc =
𝐶
Regular Price =
100%−𝑀𝑎𝑟𝑘 𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒 MsP
MRsP =
𝑆𝑃

SP = C + (C (MRc))
SP
C=
1+𝑀𝑅

Check your Understanding

I. Convert mark-on rate based on selling price to mark-on rate based on cost and vice versa.
Mark-on Rate Based on Selling Price Mark-on Rate Based on Cost
1. 20% ___________________
2. 30% ___________________
3. _____________________ 10%
4. _____________________ 30%
5. 50% ____________________
6. 6% ____________________
7. _____________________ 60%
8. _____________________ 70%
9. 14.29 % ____________________
10. 66.67 % ____________________

II. Complete the table below by providing the appropriate data needed for each row. You may use a
calculator or spread sheet for your calculations.

Previous Selling Price Mark-up Rate Mark-up Increase Selling Price

1. P33 25%
2. P963 P321
3. P20.75 12 ½ %
4. P30 P105
5. P25 P30.50

III. Solve the following problem.

1. The manager of boutique store buys a jacket for P800 and sells the jacket for P1 184. Find
the mark-up rate.
2. A store purchased a box of 72 bars of chocolate. If the box cost P100 and each chocolate
was then sold for P2.00, what was the percent of mark-on based on cost?
3. A Barong Tagalog with a regular price of P8 050 is on sale for P5 450. Find the mark down.
4. Reina’s dresser was regularly trades of P1 350 that on sale for P810. Women are rushing
to take advantage of this mark down. What is the percentage of mark down?
5. A pair of rubber shoes costing P2 210 has a mark-up rate of 74%. Find the selling price.
6. If a merchandise costing P3 920 is sold for P5 390, what is the mark-up rate?
7. A 32’’ LCD Television with a cost of P20 000 has a mark-up rate of 23%.
Find the selling price.
8. A dealer bought 10 thermos at P150 each and sold for P225. What was the percent
of mark-on based on the selling price?
9. A bag with a regular price of P2 825 is on sale for P2 365.50. Find the mark down.
10. A manufacturer puts a mark-up of 25% on leather shoes tagged at P250. Find the amount
of mark up and the increased selling price.

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 Post-test

Choose the letter of the correct answer. Write the chosen letter on a separate sheet of paper.
1. What is the definition of mark on?
A. The difference between the selling price and down payment.
B. The difference of increased selling price and previous selling price.
C. The difference between decreased selling price and previous selling.
D. The difference between selling price of an article and the cost of the article includes the
operating expenses
2. After the school year, Cassie is considering reducing the price of a notebook.
If she wants to decrease its price from P30 to P21, what is the markdown rate?
A. 0.3% B. 0.7% C. 30% D. 70%
3. Which of the following is determined by the formula of peak selling price minus regular selling
price?
A. Mark on B. Operating Cost C. Selling Price D. Cost price
4. What is the percentage increase in the price if the old price of product is P100 and the new
price is P500?
A. 100% B. 200% C. 300% D. 400%
5. What is the decimal equivalent of 120%?
A. 0.12 B. 1.20 C. 11.20 D. 112.0
6. A jacket which costs P1 350 is being sold at P2 025. What is the rate of mark-up based on cost?
A. 30% B. 40% C. 50% D. 60
7. Find the cost of a box of pencils sold for P135 with 25% mark-up based on selling price.
A. P101.25 B. P101.52 C. P110.25 D. P110.52
8. What was the mark down rate of a sala set marked P8 000 offered for P5 600 at a closing-out
sale of Ace Furniture Co.?
A. 30% B. 23% C. 20% D. 40%
9. What is the money earned after the cost price and operating costs are accounted for after the
sale of a commodity?
A. Cost Price B. Operating Cost C.Profit D. Selling Price
10. What is the value of x for Mark down = x – Sale Price?
A. Cost Price B. Operating Cost C. Mark down D. Selling Price

Additional Activities

Solve the following problems.

1. An exercise machine that regularly sells for P20 700 is on sale for P15 940.
Find the mark down.
2. The original selling price of the sofa set was P39 375 and the marked down price
was P36 776.25. Find the rate of mark down.
3. A multimedia projector that is on sale for P34 184.40 has a mark down of 26.8% off
the regular price. What is the regular price of the item?
4. A video game is on sale for P3 050.40 after a mark down of 18%. Find the regular price.
5. Convert a mark-on rate of 20% based on selling price to mark-on rate based on cost.

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MATH 11 QUARTER 1 WEEK 5 P a g e 9 | 10
MARIA VICTORIA L. FILOTEO
MATH 11 QUARTER 1 WEEK 5 P a g e 10 | 10