Republic of the Philippines

Department of Education
N a t i o n a l Ca pi t a l Re g i o n
Sc h o o l s D i v i s i o n O f f i c e o f La s Pi ñ a s Ci t y

NAME: ___________________________________________ Score: ___________________

GRADE & SECTION __________________________ Teacher: ___________________

BUSINESS MATH 11
Second Quarter
Week 7
MOST ESSENTIAL LEARNING COMPETENCY
Differentiate profit from loss. (ABM_BM11BS-Ii-6)
Illustrate how profit is obtained and how to avoid loss in a given transaction. (ABM_BM11BS-Ii-7)

OBJECTIVES
 Define profit and loss
 Solve for the profit given the cost and net sales
 Determine if profit or loss is achieved in a given transaction

WHAT I KNOW
Evaluate the following given the following values:
1. The price of a pair of socks is P200. How much is the cost of 8 pairs of socks?
2. The revenue R (in pesos) of a chocolate company is given by R = 30x, where x is the number of chocolate
boxes. How much is the revenue if there are 25 boxes of chocolate?
3. The fixed cost of an industry is P5,000 which is independent on the number of units. How much is the fixed cost
of 100 units?
4. If the cost of producing x units of a product is given by C = 10x, what is the cost of producing 5 units?
5. The annual earnings (in million pesos) of a calculator manufacturer is given by P = 50x - 10, how much is the
profit of selling 5 calculators?

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

WHAT’S NEW

Example 1: A watch store owner decided to offer a 20% discount for a particular brand of watch that sells at
P35,000. By doing so, his average sales increased from 5 watches to 12 watches a day. If he bought one watch at a price
of P22,000 from the supplier, by how much was the daily profit increased or decreased by offering such discount on the
watch?
Solution:
Profit per watch = 35,000 - 22,000 = P13,000
Profit for selling 5 watches = 13,000(5) = P65,000
With 20% discount
New Selling Price = 35,000 - 0.2(35,000) = P28,000
Profit per watch = 28,000 - 22,000 = P6,000
Profit for 12 watches = 6,000(12) = P72,000
Increase in daily profit = 72,000 - 65,000 = P7,000

WHAT’S IS IT
Example 2: Annie bought one dozen smartphones for P200,000 with a discount of 5%. She sold half dozen
at a price of P18,000 per unit. However, a new model of smartphone became available in the market, so she sold
the remaining half dozen at P12,000 each unit. What was her profit or loss?
Solution:
Cost of 12 dozens of smartphones = 200,000 - 0.05(200,000) = P190,000
Net Sales:
For 6 smartphones at a price of P18,000 per piece = 18,000(6) = P108,000
For 6 remaining phones at a price of P12,000 per piece = 12,000(6) = P72,000
Total Net Sales = 108,000 + 72,000 = P180,000
Loss = Cost - Net Sales = 190,000 - 180,000 = P10,000
 WHAT’S MORE
Example 3: Jay-R bought two digital cameras at P15,490 each. He sold one of the cameras to his friend
at P13,500, while the other one was sold to his neighbor at 16, 200. How is his profit or loss?
Solution:
Cost of 2 digital cameras = (15,490)(2) = P30,980
Net Sales = 13,500 + 16, 200 = P29,700
Loss = Cost - Net Sales
= 30,980 - 29,700
= P1,280

WHAT I HAVE LEARNED

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

WHAT I CAN DO
Directions: Let x be the number of units. Complete the table below.

VARIABLE COST FIXED COST TOTAL COST

10x 2,000
400 30x + 400
5x 5x + 1,500
2,500 40x + 2,500
40x 8,000

ASSESSMENT
Directions: Solve the following problems.
1. Esther has a small store. Last month, she purchased a merchandise costing P75,000 for which she paid freight
of P7,500. She sold 60% of the merchandise for P68,000 after spending for various expenses totaling P13,000.
She also paid P2,000.00 for interest on money she borrowed for her store.
a. How much was her cost sales?
b. How much gross profit did she make?
c. How much operating expenses did she make?
d. What was her net profit?
2. Given the data for the Summit Marketing Co.:
Sales P127,500
Purchases (merchandise) 57,000
Freight In 5,000
Taxes and Licenses 900
Communication Expense 300
Heat, Light, and Water 1,240
Store Supplies Expense 1,180
Office Supplies Expense 730
Miscellaneous Expense 2,090
a. How much is the cost sales?
b. What is the margin or gross profit?
c. How much is the operating expenses?
d. How much is the net profit?
3. Michelle went to Baguio and bought 20 jars of strawberry jam for P3,500 with 15% discount. When she got
back to Manila, she sold 10 of the jars for a total of P1,800 and the rest at P185 each. How much profit did
Michelle Gain?

ADDITIONAL ACTIVITY

Do what is asked: Let x be the number of units. Complete the table below.

REVENUE TOTAL COST PROFIT

px VC + FC
500x 300x - 1,000
40x + 2,500 160x + 6,000
35x 15x + 600
10x + 1,200 20x + 1,200

Prepared by: Mary Ann E. Bermas, Las Pinas City National Senior High School – Doña Josefa Campus