The document defines key terms related to markup, cost price, and selling price. It provides a formula to calculate markup (M=Selling Price - Cost Price) and markup percentage (Markup/Cost Price * 100). An example is given where keychains are purchased for ₱10 each and sold for ₱15 each, resulting in a ₱5 markup and 50% markup percentage based on cost. Questions are then provided to test understanding of calculating markup, markup percentage, and using cost price versus selling price in the calculations.

2. •Markup is the difference
between the selling price
and the cost price.

3. •Cost Price is the original
price at which you bought or
produced the item.

5. Identify the Cost Price (CP):
•The cost price is the original price at
which you purchased or produced the
item.
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6. Determine the Selling Price (SP):
The selling price is the price at which you
plan to sell the item.
2

7. Calculate the Markup (M):
Markup is the difference between the
selling price and the cost price.
M=SP−CP
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8. Example:
Suppose you bought a product for
₱50 and plan to sell it for ₱75.
CP= ₱50 SP= ₱75
Markup= SP-CP = ?
₱ 75- ₱ 50 = ?₱ 25

9. Compute the Markup Percentage:
Use the formula:
Substitute the values of M and CP into the
formula to find the markup percentage.
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10. Example:
Suppose you bought a product for
₱50 and plan to sell it for ₱75.
Markup Percentage =
₱ 25
₱ 50 50%
X 100 =

12. •You are running a small business where
you sell handmade crafts. You recently
purchased a set of handcrafted keychain
to sell in your store. The buying price for
each keychain is ₱10.00, and you decide
to sell them for ₱15.00 each.

13. 1 •What is the peso markup for
each keychain?
•A. ₱5.00
•B. ₱10.00
•C. ₱15.00
•D. ₱25.00

14. •If you sell 20 keychain, what
is the total peso markup for
all keychain?
•A. ₱100.00
•B. ₱150.00
•C. ₱200.00
•D. ₱250.00
2

15. •What is the percentage
markup based on cost for
each keychain?
•A. 25%
•B. 50%
•C. 75%
•D. 100%
3

16. •If you want to achieve a total
markup of ₱200.00 for all
20 keychains, what should be
the selling price per
keychain?
•A. ₱5.00 C. ₱15.00
•B. ₱10.00 D. ₱20.00
4

17. •Why is it important to calculate
markup percentage?
•A. To increase buying price
•B. To calculate the profit per
item
•C. To decrease selling price
•D. To ignore cost in pricing
decisions
5

18. •If you decide to calculate
percentage markup based on
selling price, what would be the
percentage markup for each
keychain in the given scenario?
•A. 33.33%
•B. 25%
•C. 20%
•D. 50%
6

19. •What is the advantage of
consistently using either cost or
selling price when calculating
percentage markup?
•A. It simplifies the calculation
process
•B. It confuses customers
•C. It ensures higher profits
•D. It leads to faulty data
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20. •If the selling price of each keychain
is increased to ₱18.00, what would
be the new percentage markup
based on cost?
•A. 80%
•B. 50%
•C. 20%
•D. 60%
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21. •What is the disadvantage of the
cost principle in accounting?
•A. It reflects real market value
•B. It requires frequent
adjustments
•C. It is easy to understand
•D. It increases complexity for
users
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22. •If the total cost of purchasing
20 keychain is ₱200.00, what
would be the total profit if all
keychains are sold at their
selling price?
•A. ₱150.00
•B. ₱200.00
•C. ₱250.00
•D. ₱300.00
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25. • Determine the peso mark up with the given
details found in the table.
Review:

27. • Directions: Calculate the selling price and
peso markup. Solve for the percentage
markup based on purchase cost.
Activity 1:
2.50 20%
12.00 50%
2.00
13.00 23%
12.00 50%
4.00

28. •Nanay Saling bought Cookies for P2.50.
She wants to sell it for P5.00. How
much is the peso markup? What is the
percentage markup of the product
based on selling price? Calculate the
cost using the formula.
Activity 2: