MARK UP MARK DOWN MARK ON_BAUTISTA, ABEGAIL DR..pdf

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

Business Mathematics– Senior High School
Alternative Delivery Mode
Quarter 1 – Module 5: Differentiating Mark-on, Markdown, and Mark-up obtain
Mark-on, Markdown and Mark-up given price of a product
First Edition, 2020
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Published by the Department of Education
Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio
Development Team of the Module
Writer : Abegail DR. Bautista
Editor : Teresa R. Manlapaz
: Michael DR. Mangara
Reviewer : Melissa M. Santiago
Illustrator : Lee-Ann DC. Mercado
Layout Artist : Alexander F. Santos, Jr.
Management Team
Norma P. Esteban, EdD CESO IV
Leonardo C. Canlas, EdD CESE
Arnelia M. Trajano, PhD
Fatima M. Punongbayan
Salvador B. Lozano
Cristina S. Castillo
Printed in the Department of Education, Schools Division of City of Malolos
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Telefax: (044) 812-2006/ 812-2007
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Senior High School
Business
Mathematics
Quarter 1- Module 5:
Mark-on, Markdown, and Mark-up

Notes to the Teacher
Introductory Message
For the facilitator:
Welcome to the Business Mathematics Alternative Delivery Mode (ADM)
Module on Mark-on, Markdown, and Mark-up!
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:
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 Business Mathematics Alternative Delivery Mode (ADM)
Module on Mark-on, Markdown, and Mark-up!
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; 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 into
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.
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. Do not 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 intended to help students understand how to
be productive individuals. In a business environment, settling on a
suitable sales price for individual or company’s services or goods is a
very important task. The price must be desirable and suitable to
prospective customers. Mark ups and mark downs should be enough
to cover expenses and provides the business with a reasonable/
rightful profit.
This module is composed of lesson, namely:
Buying and Selling
A. Most Essential Learning Competency:
Differentiating Mark-on, Markdown and Mark-up Obtain Mark-
on, Markdown and Mark-up Given Price of a Product.
(ABM_BM11BS-Ig-1)
At the end of the module, you are expected to:
1. Differentiate Mark-on, Mark down and Mark-up
2. Illustrate how Mark-on, Mark down, Mark-up are obtained
What I Know
Direction: Convert mark-on rate based on selling price to mark-on rate
based on cost and vice versa. Use a separate sheet of paper for
your answer.
Mark-on Rate Base on Selling Price Mark-on Rate Based on Cost
1. 70%
2. 72%
3. 25%
4. 11%
5. 8%

6. 13%
7. 69%
8. 72%
9. 14%
10. 35%
Direction: Supply the missing items in each of the following by writing
your answer. Use a separate sheet of paper for your answer.
Marked Price Rate of Discount Markdown Selling Price
1. PHP 1,059.50 20% PHP 211.9
2. PHP 1,000.00 5% PHP 950.00
3. PHP 700.00 PHP 21.00 PHP 679.00
4. PHP 3,500.00 14.29% PHP 500.15
5. PHP 399.75 25% PHP 299.81
What’s In
In differentiating mark-on, mark-down and mark-up in a given price of
the product requires knowledge in Percentages. In the previous lessons, we
have learned that percentage is the result obtained by taking a certain
number. A Percentage problem always involves 3 terms-percentage, rate and
base, denoted by P, R, B, respectively. The basic formula on solving problem
involving percentage are 𝑃 = 𝐵𝑥 𝑅, 𝑅 =
𝑃
𝐵
, 𝐵 =
𝑃
𝑅
.
Direction: Solve for the percentage, rate and base.
1. What is the 45% of 200?
2. In a class of 20, 30% are girls. How many are boys?
3. What part of 1000 is 230?
4. In stock of 200 reams of bond paper, 35 are defective. How many percent
of the stock is defective?
5. In a class, 8 are girls. If this is 40% of the class, how many students are
there?
What’s New

The Price is Right.
Direction: Student will guess the price of the items. Write your answer inside
the tag price.
Questions:
1. How did you find the activity?
2. What is the significance of understanding the rules in performing the
operations of decimals and percentages?
3. How will you apply this to real-life situations?
What is It
In a business environment, settling on a proper selling price for
individual or company’s services or goods is a very important principle. The
price must be desirable and appropriate to customer. Mark-ups and mark
downs should be enough to cover expenses and provides the business with
reasonable profit. Wrong pricing may lead to small profit or heavy loss.
Business is the activity of making, buying or selling goods or providing
services in exchange for money. Almost everyone deals with selling in order to
earn by commission, buy products on sale in order to get discounts. Business
owner needed to price the products to cover the different cost of product.
Pricing the products too high might lead to lose customers and pricing too low
may only “break-even” or may lost profit for the business. Pricing, selling,
discounts and commissions are very important in business.
Selling price or the retail price (tag price) is the amount which the
retailer sells the goods to the customers.

Formula:
Selling Price= Cost of Goods + Mark-on
𝑆 = 𝐶𝑔 + 𝑀𝑔
Where:
𝑆 = 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
𝐶𝑔 = 𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠
𝑀𝑔 = 𝑀𝑎𝑟𝑘 − 𝑜𝑛
Cost of goods is the amount the retailer spends in buying the goods,
which includes the cost of the goods and buying expenses.
Mark-on or margin (initial markup) is the difference between the selling
price and the cost of the product or service. It also includes the operating
expenses and the preferred profit. Mark-on is also known margin (gross profit)
which is the excess of selling price of the product or service over cost from the
perspective of the seller.
Where:
𝑆 = 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
𝐶𝑔 = 𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠
𝑆𝑟 = 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑟𝑎𝑡𝑒
𝑀𝑔𝑟 = 𝑀𝑎𝑟𝑘 − 𝑜𝑛 𝑟𝑎𝑡𝑒
𝑀𝑔 = 𝑀𝑎𝑟𝑘 − 𝑜𝑛
𝑀𝑔𝑟𝑐 = 𝑀𝑎𝑟𝑘 𝑟𝑎𝑡𝑒 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑐𝑜𝑠𝑡
𝑀𝑔𝑟𝑠 = 𝑀𝑎𝑟𝑘 𝑟𝑎𝑡𝑒 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑠𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒
Formula:
𝑀𝑎𝑟𝑘 − 𝑜𝑛 = 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 − 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠
𝑀𝑔 = 𝑆 − 𝐶𝑔
𝑀𝑎𝑟𝑘 − 𝑜𝑛 = 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑥 𝑀𝑎𝑟𝑘 − 𝑜𝑛 𝑟𝑎𝑡𝑒 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑐𝑜𝑠𝑡
𝑀𝑔 = 𝐶𝑔𝑥 𝑀𝑔𝑟𝑐

Mark-on Formulas:
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 = 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 + 𝑀𝑎𝑟𝑘 − 𝑜𝑛
𝑆 = 𝐶𝑔 + 𝑀𝑔
𝑀𝑎𝑟𝑘 − 𝑜𝑛 = 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 − 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠
Based on Cost:
𝑀𝑎𝑟𝑘 − 𝑜𝑛 𝑅𝑎𝑡𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝐶𝑜𝑠𝑡 =
𝑀𝑎𝑟𝑘 − 𝑜𝑛
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠
𝑥 100
𝑀𝑔𝑟𝑐 =
𝑀𝑔
𝐶𝑔
𝑥 100
𝑀𝑎𝑟𝑘 − 𝑜𝑛 = 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑥 𝑀𝑎𝑟𝑘 − 𝑜𝑛 𝑅𝑎𝑡𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝐶𝑜𝑠𝑡
𝑀𝑔 = 𝐶𝑔𝑥 𝑀𝑔𝑟𝑐
Based on Selling Price:
𝑀𝑎𝑟𝑘 − 𝑜𝑛 𝑅𝑎𝑡𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 =
𝑀𝑎𝑟𝑘 − 𝑜𝑛
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑅𝑎𝑡𝑒
𝑥 100
𝑀𝑔𝑟𝑠 =
𝑀𝑔𝑟
𝑆𝑟
𝑥100
𝑀𝑎𝑟𝑘 − 𝑜𝑛 = 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑥 𝑀𝑎𝑟𝑘 − 𝑜𝑛 𝑅𝑎𝑡𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
𝑀𝑔 = 𝑆 𝑥 𝑀𝑔𝑟𝑠
Example 1:
Mrs. Eligio bought a handbag for PHP 1,200.00. The bag was all the
way from Hong Kong that is why she decided to sold it for PHP 1,800.00 to
cover up the handling fee or transportation fee and the number of demands
for the bag. Find the mark-on as a percent of the cost and as a percent of the
selling price.

Solution:
Where:
Step 1: Find first the mark-on.
Let the PHP 1,800.00 the selling price and PHP 1,200.00 the cost of
goods.
= 1,800.00 − 1,200.00
𝑀𝑔 = 600.00
Therefore, the mark-on or gross margin is PHP 600.00.
Step 2: Find the mark-on rate based on cost.
Let PHP 600.00 the mark-on and PHP 1,200.00 the cost of goods.
Divide PHP 600.00 over PHP 1,200.00 then multiply to 100 to get the
rate.
a. 𝑀𝑔𝑟𝑐 =
𝑀𝑔
𝐶𝑔
𝑥 100
=
600.00
1200.00
𝑥 100
= 0.5 𝑥 100
𝑀𝑔𝑟𝑐 = 50%
Therefore, the mark-on rate based on cost is 50%
Step 3: Find the mark-on rate based on selling price.
Let PHP 600.00 the mark-on and PHP 1,800.00 the selling price.
Divide PHP 600.00 over PHP 1,800.00 then multiply to 100 to get the
rate.
b. 𝑀𝑔𝑟𝑠 =
𝑀𝑔
𝑆
𝑥100
=
600
1800
𝑥 100
= 0.3333 𝑥 100

𝑀𝑔𝑟𝑠 = 33.33%
Therefore, the mark-on rate based on selling price is 33.33%
Example 2.
Convert a Mark-on rate of 20% based on cost to a mark-on rate based
on selling price.
Where:
Solution:
Step 1: Let cost rate always equal to 100% and 20% the mark-on rate. Let us
now substitute the given numbers.
𝑆𝑟 = 𝐶𝑟 + 𝑀𝑔𝑟
= 100% + 20%
𝑆𝑟 = 120%
Therefore, the selling rate is 120%
Step 2: Find the Mark-on rate based on selling price.
𝑀𝑔𝑟𝑠 =
𝑀𝑔𝑟
𝑆𝑟
𝑥 100
=
20%
120
𝑥 100%
= 0.1667𝑥100
𝑀𝑔𝑟𝑠 = 16.67%
Therefore, the mark-on rate based on selling price is 16.67 %
Example 3.

Find the selling price of a box of 50 pieces of face mask that
cost PHP 120.00 and is marked on by 30% of the selling price.
Where:
𝐶𝑔𝑟 = 𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑟𝑎𝑡𝑒
Solution:
Step 1: Let selling rate always equal to 100% and 30% the mark-on rate. Let
us now substitute the given numbers.
𝐶𝑔𝑟 = 𝑆𝑟 + 𝑀𝑔𝑟
= 100% − 30%
𝐶𝑔𝑟 = 70%
Therefore, the rate of cost of goods of box of face mask is 70%.
Step 2: Find the Mark-on rate based on cost.
𝑀𝑔𝑟𝑐 =
𝑀𝑔𝑟
𝐶𝑔𝑟
𝑥 100
=
30%
70%
𝑥 100
= 0.4286 𝑥 100
𝑀𝑔𝑟𝑐 = 42.86%
Therefore, the mark-on rate based on cost is 42. 86%
Step 3: Find the Mark-on price.
𝑀𝑔 = 𝐶𝑔 𝑥 𝑀𝑔𝑟𝑐
= 120 𝑥 42.86%
𝑀𝑔 = 51.43
Therefore, the mark-on price is PHP 51.43
Step 4: Find the selling price.

𝑆 = 𝐶𝑔 𝑥 𝑀𝑔
= 120.00 + 51.43
𝑆 = 171.42
Therefore, the selling price is PHP 171. 42.
Markdown refers to the reduction in the original selling price. The aims
of markdown are to attract more sales, for inventories, meet the prices of
competitors, to clear the old stocks or those that are not selling well. A retail
discount maybe a single rate of discount or a chain/series of discounts, like
a trade discount offered by retailer to consumers.
Where:
𝑀𝑑𝑟 = 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑟𝑎𝑡𝑒
𝑀𝑑 = 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛
𝑀𝑜 = 𝑀𝑎𝑟𝑘𝑒𝑑 𝑝𝑟𝑖𝑐𝑒 𝑜𝑟 𝑜𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑝𝑟𝑖𝑐𝑒
𝑆 = 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒
Formulas:
𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒 =
𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛
𝑀𝑎𝑟𝑘𝑒𝑑 𝑃𝑟𝑖𝑐𝑒
𝑥 100
𝑀𝑑𝑟 =
𝑀𝑑
𝑀𝑜
𝑥100
𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 = 𝑀𝑎𝑟𝑘𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 𝑥 𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡 𝑅𝑎𝑡𝑒
𝑀𝑑 = 𝑀𝑜 𝑥 𝑀𝑑𝑟
𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 = 𝑀𝑎𝑟𝑘𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 − 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
𝑀𝑑 = 𝑀𝑜 − 𝑆
Marked price also known as original price is the price which a retailer
offers to sell a product or service.
𝑀𝑎𝑟𝑘𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 =
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡 𝑅𝑎𝑡𝑒

𝑀𝑜 =
𝑀𝑑
𝑀𝑑𝑟
𝑀𝑎𝑟𝑘𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 = 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 + 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛
𝑀𝑜 = 𝑆 + 𝑀𝑑
Net price or selling price is the price at which something sells or how
much the customer pays after deducting a possible discount.
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 = 𝑀𝑎𝑟𝑘𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 − 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛
𝑆 = 𝑀𝑜 − 𝑀𝑑
Example 1.
At year-end sale of Bodega Store, an electric fan set marked PHP
2,000.00 was offered for PHP 800.00. What was the retail discount offered?
What was the rate of the discount?
Where:
Solution:
Step 1: Let us substitute the given number. Find the markdown price.
= 2,000.00 − 800.00
𝑀𝑑 = 1,200.00
Therefore, the markdown price of electric fan is PHP 1,200.00
Step 2: Find the markdown rate.
𝑀𝑑𝑟 =
𝑀𝑑
𝑀𝑜
𝑥 100

=
1,200.00
2,000.00
𝑥 100
= 0.6 𝑥 100
𝑀𝑑𝑟 = 60%
Therefore, the markdown rate is 60%
Example 2.
A surplus store offered for sale at PHP 100.00 the slack pants for ladies
that was originally priced at PHP 499.99. Find the markdown and the percent
of the markdown.
Where:
Solution:
= 499.99 − 100.00
𝑀𝑑 = 399.99
Therefore, the markdown price of lady’s slack is PHP. 399.99
Step 2: Find the markdown rate.
𝑀𝑑𝑟 =
𝑀𝑑
𝑀𝑜
𝑥 100
=
399.99
499.99
𝑥 100
= 0.80 𝑥 100
𝑀𝑑𝑟 = 80%
Therefore, the markdown rate is 80%.

Example 3.
A retailer sells cologne at PHP 50.00 each less 10% and if the customer
will buy the product today an additional 5% will be given. How much does a
customer pay the cologne today and how much amount saved?
Where:
𝑆𝑛 = 𝑁𝑒𝑤 𝑠𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒
𝑆𝑜 = 𝑂𝑙𝑑 𝑠𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒
𝐷𝑡 = 𝑇𝑜𝑡𝑎𝑙 𝑑𝑖𝑠𝑐𝑜𝑢𝑛𝑡
𝐷1 = 𝐹𝑖𝑟𝑠𝑡 𝑑𝑖𝑠𝑐𝑜𝑢𝑛𝑡
𝐷2 = 𝑆𝑒𝑐𝑜𝑛𝑑 𝑑𝑖𝑠𝑐𝑜𝑢𝑛𝑡
Solution:
= 50.00 𝑥 0.10
𝑀𝑑 = 5.00
Therefore, the markdown price of cologne is PHP 5.00
Step 2: Find the selling price.
𝑆 = 𝑀𝑜 − 𝑀𝑑
= 50.00 − 5.00
𝑆 = 45.00
Therefore, the initial selling price of cologne is PHP 45.00.
Step 3: Find the markdown discount rate.
= 45.00 𝑥 0.05 (𝑎𝑑𝑑𝑖𝑡𝑖𝑜𝑛𝑎𝑙 𝑑𝑖𝑠𝑐𝑜𝑢𝑛𝑡)

𝑀𝑑 = 2.25
Therefore, the additional discount price of cologne is PHP 2.25
Step 4: Find the new selling price after the first markdown.
𝑆𝑛 = 𝑆𝑜 − 𝑀𝑑
= 45.00 − 2.25
𝑆𝑛 = 42.75
Therefore, the new selling price after the two discounts of cologne
is PHP 42. 75
Step 5: Find the total discount.
𝐷𝑡 = 𝐷1 + 𝐷2
= 5.00 + 2.25
𝐷𝑡 = 7.25
Therefore, the total discount of cologne is PHP 7. 25
Markup refers to amount added to original selling price to arrive at a
new selling price. For entrepreneurs in the process of starting a business,
establishing markup is one of the most important parts of pricing strategy.
Markups must be sizable enough to cover all anticipated business expenses
and reductions (markdown, stock shortages, employee and customer
discounts) and still provide the business with a good profit.
Where:
𝑀𝑢 = 𝑀𝑎𝑟𝑘 − 𝑢𝑝
𝑀𝑢𝑟 = 𝑀𝑎𝑟𝑘 − 𝑢𝑝 𝑟𝑎𝑡𝑒
Formulas:
𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 = 𝐼𝑛𝑐𝑟𝑒𝑎𝑠𝑒𝑑 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 − 𝑀𝑎𝑟𝑘 − 𝑢𝑝
𝑆𝑜 = 𝑆𝑛 − 𝑀𝑢

𝐼𝑛𝑐𝑟𝑒𝑎𝑠𝑒𝑑 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 = 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 + 𝑀𝑎𝑟𝑘 − 𝑢𝑝
𝑆𝑛 = 𝑆𝑜 + 𝑀𝑢
𝑀𝑎𝑟𝑘 − 𝑢𝑝 = 𝐼𝑛𝑐𝑟𝑒𝑎𝑠𝑒𝑑 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 − 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
𝑀𝑢 = 𝑆𝑛 − 𝑆𝑜
𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 =
𝑀𝑎𝑟𝑘𝑒𝑑 𝑃𝑟𝑖𝑐𝑒
𝑆𝑜 =
𝑀𝑑
𝑀𝑜
𝑀𝑎𝑟𝑘 − 𝑢𝑝 = 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑥 𝑀𝑎𝑟𝑘 − 𝑢𝑝 𝑟𝑎𝑡𝑒
𝑀𝑢 = 𝑆𝑜 𝑥 𝑀𝑢𝑟
𝑀𝑎𝑟𝑘 − 𝑢𝑝 𝑅𝑎𝑡𝑒 = 𝑀𝑎𝑟𝑘 −
𝑀𝑎𝑟𝑘−𝑢𝑝
𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
𝑀𝑢𝑟 =
𝑀𝑢
𝑆𝑜
Example 1.
The table below illustrates how markup is obtained.
Previous
Selling Price
Markup
Rate
Markup Increased
Selling Price
PHP 900.00 25% PHP 900.00 (0.25)= PHP 225.00 PHP 1,125.00
PHP 1300.00 15% PHP 1300.00 (0.15)= PHP 195.00 PHP 1,495.00
PHP 570.00 35% PHP 570.00 (0.35) = PHP 199.50 PHP 769.50
Example 2.
A school supply factory puts a markup of 10% on notebook
which are tagged at PHP 45.00. Solve the amount of markup and the
increased selling price.
Where:

𝑀𝑢 = 𝑀𝑎𝑟𝑘 − 𝑢𝑝
𝑀𝑢𝑟 = 𝑀𝑎𝑟𝑘 − 𝑢𝑝 𝑟𝑎𝑡𝑒
Solution:
Step 1: Let us substitute the given number. Find the mark-up price.
𝑀𝑢 = 𝑆𝑜 𝑥 𝑀𝑢𝑟
= 45.00 𝑥 10%
𝑀𝑢 = 4.50
Therefore, the mark-up price of notebook is PHP 4.50.
Step 2: Find the increased selling price.
𝑆𝑛 = 𝑆𝑜 + 𝑀𝑢
= 45.00 + 4.50
𝑆𝑛 = 49.50
Therefore, the new selling price of notebook is PHP 49.50
What’s More
Enrichment Activities:
I. Identify the following: Write your answer on the space provided.
1. It is the amount that is added to the original price to obtain the selling
price. ___________
2. It is the amount that is subtracted from the original price to obtain the
selling price. ___________
3. It is the amount added to original selling price to arrive at a new selling
price. ___________

II. Solve the following problem. Write your answer on the space provided.
1. Convert mark-on rate of 20% based on selling price to mark-on rate based
on cost.
Solution: If mark-on rate is based on selling price, then selling price is
100%.
𝐶𝑔 = 𝑆 − 𝑀𝑔
= __________________
= __________________
𝑀𝑔𝑟𝑐 =
𝑀𝑔
𝐶𝑔
𝑥 100
= __________________
= __________________
= __________________
Independent Activity 1:
Solve the following problem. Write your answer and solution inside the box.
1. Find the selling price of face shield that costs PHP 120.00 and is marked
on by 30% of the cost.
Independent Assessment 1:
1. The Home Along, a home appliance dealer purchased a speaker set for
PHP 11,000.00 and the delivery charged was PHP 200.00. How much will
Home Along have to sell for this speaker set if a 30% profit based on the
total cost is desired? If a 30% profit based on the selling price is desired,
how much will be the selling price?

2. An online seller purchased a box of 50 pieces face mask. If the box
cost PHP 120.00 and each face mask was then sold for PHP 28.00, what
was the percent of mark-on based on cost?
1. How much will buyer pay for a cellphone case marked PHP 850.00 if a
retail discount of 33% is allowed?

2. A retailer sells light bulb at PHP 50.00 each less 10% and 5%. How much
does a customer pay the light bulb?
1. Scented 70% isopropyl alcohol originally marked PHP 500.00 per gallon at
ABC Online Shop were sold for PHP 300.00 each per gallon. What rate of
discount was offered? How much is the markdown?

2. At what price should a dealer mark a laptop in order that the selling price
may be PHP 28, 799.50 after allowing a discount of 20% on the marked
price?
3. Shasha bought a second-hand netbook for PHP 9, 200.00 less 20% and
sold it putting a markup of PHP 500.00. What is the rate of the markup?

4. A refrigerator that has a tag price of PHP 22,000.00 was marked down by
20% during the year-end clearance sale of the mall. After the sale, it was
markup by 18%. Find the selling prices after the markdown and markup.
What I Have Learned
Identify if the price of the specific product is mark-on, markdown or
mark-up. Write your answer after the price given. Each correct answer is
equivalent to 1 point.
Product Price Mark-on,
Markdown or
Mark-up
Pencil PHP
45.00
Eraser PHP
15.00

Notebook PHP 5.00
Crayons PHP
85.00
Long pad papper PHP
20.00
What I Can Do

In this kind of situation that the
world facing today, it is important to
have savings for us to survive in this
time of pandemic. We don’t know if
everything will go back to normal but
what we can do in our own little way
is to help our lives get easier. As a
student of this track, ABM, you are
building yourselves to become future
managers, businessmen/women and
entrepreneurs. Even if you are
young, you can have a retail
business during this rough period.
You can have your own retail
business using your social media
applications.
.
Assume that you are an online seller, write down your products and your
possible mark-on, markdown, and mark-up that will help you to provide a
favorable profit. Write ten (10) products that you will going to sell online and put
desirable prices that you wish to have. Write your answer inside the box.

Assessment
A. Complete the table. Compute the following missing item involving mark-on in
each of the following. Use the space below for computation.

Cost Desired
Mark-on
Rate Based
on Cost
Desired
Mark-on
Rate Based
on Selling
Price
Amount of
Mark-on
Selling Price
1. PHP 100.00 10% 9.09%
2. PHP 150.00 20%
3. PHP180.00 15%
4. PHP 450.00 25%
5. PHP 3,000.00 12%
B. Complete the table. Compute the following missing item involving markdown
in each of the following. Use the space below for computation.
Marked Price Rate of
Discount
Markdown Selling Price
1. PHP 1,059.50 20% PHP 211.90
2. PHP 1,000.00 5% PHP 950.00
3. PHP 700.00 PHP 21.00
4. PHP 3,500.00 14.29% PHP 500.15

5. PHP 399.75 25% PHP 299.81
C. Complete the table. Compute the following missing item involving mark-up in
each of the following. Use the space below for computation.
Previous Selling
Price
Mark-up
Rate
Mark-up Increased Selling
Price
1. PHP 980.00 18%
2. PHP 1,300.00 PHP 150.02
3. PHP 4,700.00 PHP 6,000.02
4. PHP 680.00 PHP 306.00
5. PHP 532.00 PHP 2,052.5
Find the values of the missing variables, which are defined as follows:
Write your answer inside the box
• S is the selling price;
• Mo is the original price;
• Mu is the markup;
• Md is the markdown;
• Mg is the gross margin; and
• r is the markup, markdown, or gross margin rate.

1. 𝑀𝑜 = 𝑃𝐻𝑃 300.00
𝑀𝑔 = 𝑃𝐻𝑃 57.00
𝑆 =?
𝑟 =?
(based on cost)
2. 𝑀𝑜 =?
𝑀𝑑 = 𝑃𝐻𝑃 1,008.75
𝑆 = 𝑃𝐻𝑃 2,353.75
𝑟 =?
3. 𝑀𝑜 = ?
𝑀𝑑 = 𝑃𝐻𝑃 358.00
𝑆 =?
𝑟 = 10%
4. 𝑀𝑜 = 𝑃𝐻𝑃575.00
𝑀𝑔 =?
𝑆 =?
𝑟 = 40%
5. 𝑀𝑜 = ?
𝑀𝑑 = 𝑃𝐻𝑃 800.25
𝑆 = 𝑃𝐻𝑃 2,255.25
𝑟 =?

Answer key
What I Know
A.
1. 233.33%
2. 257.14%
3. 20%
4. 9.91%
5. 8.70%
6. 14.94%
7. 40.83%
8. 41.86%
9. 16.96%
10. 53.85%
B.
1. PHP 847.60
2. PHP 50.00
3. 3%
4. PHP 2,999.85
5. PHP 99.94
What’s In
1. P= 90
2. P= 14 boys
3. R= 23%
4. R= 22.5%
5. B= 20 students
What’s More
Enrichment Activities I
1. Mark-on
2. Markdown
3. Mark-up
Enrichment Activities II
1. 𝑐𝑜𝑠𝑡 = 100% − 20%
= 80%
𝑀𝑎𝑟𝑘 − 𝑜𝑛 𝑟𝑎𝑡𝑒 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑐𝑜𝑠𝑡 =
20%
80%
100
= 0.25𝑥 100
= 25%
Independent Activity 1
1. PHP 156.00
1. Based on cost = PHP 14, 560.00
Based on selling price= PHP 16,000.32
2. r= 1,066.67%
1. S= PHP 569.50
2. S= PHP 42.75
1. r= 40%
Md= PHP 200.00
2. Mo= PHP 35, 999.38
3. r= 6.79%
4. Mds= PHP 17,600.00
Mus= PHP 20,768.00
What I Have Learned
1. Mark-up (Mu)
2. Mark-on (Mg)
3. Markdown (Md)
4. Mark-up (Mu)
5. Mark-on (Mg)
Assessment
A.
Cost Desired
Mark-on
Rate
Based on
Cost
Desired
Mark-on
Rate Based
on Selling
Price
Amount of
Mark-on
Selling Price
1. PHP 100.00 10% 9.09% PHP 10.00 PHP 110.00

2. PHP. 150.00 20% 16.67% PHP 30.00 PHP 180.00
3. PHP 180.00 17.65% 15% PHP 31.77 PHP 211.77
4. PHP 450.00 33.33% 25% PHP 149.99 PHP 599.99
5. PHP 3,000.00 12% 10.71% PHP 360.00 PHP 3,360.00
B.
Marked Price Rate of Discount Markdown Selling Price
1. PHP 1,059.50 20% PHP 211.90 PHP 847.60
2. PHP 1,000.00 5% PHP 50.00 PHP 950.00
3. PHP 700.00 3% PHP 21.00 PHP 679.00
4. PHP 3,500.00 14.29% PHP 500.15 PHP 2,999.85
5. PHP 399.75 25% PHP 99.94 PHP 299.81
C.
Previous Selling
Price
Mark-up
Rate
Mark-up Increased Selling
Price
1. PHP 980.00 18% PHP 176.40 PHP 1, 156.40
2. PHP 1,300.00 11.54 % PHP 150.02 PHP 1,450.02
3. PHP 4,700.00 27.66% PHP 1,300.02 PHP 6,000.02
4. PHP 680.00 45% PHP 306.00 PHP 986.75
5. PHP 1,520.50 35% PHP 532.00 PHP 2,052.5
1. S = PHP 357.00, r= 19%
2. Mo= PHP 3,362.50, r= 30%
3. Mo= PHP 3,222.00, r= 10%
4. Mg= PHP 230.00, r=40%
5. Mo=PHP. 3,055.00, r= 26.19%

References
K to 12 Most Essential Learning Competencies Matrix ABM Strand Curriculum
Guide Business Mathematics.2020
Mansueto Ventures LLC. “Inc.com” Business Newsletter. Updated February 24,
2020. https://www.inc.com/encyclopedia/markup.html
Malalang, P., Pagtalunan, T., Camara, E.,Leonardo, R.and Pagay, A. Business
Mathematics 11. Bulacan: St. Andrew Publishing House.2016

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