LEARNING ACTIVITY SHEET Single Trade Discount and Discount Series

ABM 11 BUSINESS MATHEMATICS (Q1-WK6)

Gross Margins, Discounts, Profit and Loss in Business A single trade discount is a discount that is given to a customer or the
wholesaler when the customer/wholesaler buys a product. It is a percentage
related problem. For example, if you say that you will give 50% off to the price of
I. Discussion each dozen of pencil you sell, you are giving a single trade discount. The formula
used to solve for the single trade discount is given by:
Differentiate Mark-Up from Margins
Trade Discount = Original Price or List Price × Discount Rate.
In the previous lesson, we define Mark-Up as the amount by which cost of a
product is increased in order to derive the selling price, on the other hand, Margin Form this equation we also come up with:
which is also known as gross margin is Revenue or Sales minus cost of goods
sold. List price = Trade Discount ÷ Discount Rate.

Margin = Revenue or Sales – Cost of goods sold. Discount Rate % = Trade Discount ÷ Original price or List price then multiply
by 100%.
This is important in sales because it shows whether the said sales is sufficient to
cover the costs. And to get the Margin percentage, we calculated margin amount To compute for the Net Price, we just subtract the Trade discount from the list
divided by sales or revenue. price.

Margin % = Margin amount÷ Sales or Revenue multiply by 100%. Net price = List Price or Original price – Trade discount.

For example: For examples:

A pilot pen cost for Php30.00 and sold for Php50.00. How much is the margin 1. Find the trade discount for Samsung A5 phone that list for Php14,500 and has a
amount and its percentage? trade discount of 10%.

Solution: Margin = Revenue/Sales – Cost of goods sold = 50 -30 = Php20. Solution: Trade Discount = List Price × Discount rate
= Php14,500 × 0.10 = Php1,450.00
Margin % = Margin amount÷ Sales (100%) = 20 ÷ 50=0.40(100%) = 40%.
2. Find the net price of a camera that lists for Php320 and has a trade discount of
From the same example, a mark-up of Php20.00 from the Php30.00 yields the 10%.
Php50.00 price.
Solution: Trade Discount = List Price × Discount rate
We get; Mark-Up = Sales – Cost = Php50 -30 = Php20.
= Php320 × 0.10 = Php32.00
Mark-Up% = Mark-Up amount ÷ Cost (100%) = Php20 ÷ 30 (100%) = 66.67%.
Net price = List price – Trade discount
= Php320 – 32 = Php288.00

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 Profit and Loss
3. An air conditioning unit, listed at Php30,000 with a discount of Php6,000 is
offered to a customer. Determine the discount rate. Profit is a financial gain, wherein the difference between the amounts earned and
the amount spent in buying, operating, or producing something.
Solution: Discount rate = Trade discount ÷ List price
= Php6,000 ÷ 30,000 = 0.2 multiply by 100% = Where the Net Sales is the amount of money received from selling goods, and
20%. 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. To compute for
Discount Series is a type of discount wherein through a combination of the profit we use:
conditions. These are given to customers in order to encourage them to buy in
volume. Profit = Net Sales –Cost
For example:
To express loss mathematically as:
1. Suppose a discount series of 20%,10%, and 5% is given to an item with a list
price of Php400. How much is the net price? Loss = Cost – Net Sales
For examples:
Solution: Php400 × 0.2 = Php80; Php400 – Php80 = Php320
Php320 × 0.10 = Php32; Php320 – Php32 = Php288 1. Jenny bought a pen for Php120. Then sold it for Php80. How much is Jenny’s
Php288 × 0.05 = Php14.40; Php288 – Php14.40 = Php273.60 gain or loss?
Php273.60 will be the net price Given: Cost -Ph120 Net Sales - Php80

Using the Single Discount Rate (Equivalent of the Discount Rates) Loss = Cost – Net Sales
= Php120 – 80
= Php40 Loss
1. What single discount is equivalent to two successive discounts of 20% and
30%? 2. Ben bought an IPhone 4 which cost Php8,000.00 and sold it to his friend for
Php10,500.00. How much Ben’s gain or loss?
Percent given: 20% and 30%
Complement of percent given: 80% and 70% respectively Given: Cost- Php8,000 Net Sales – Php10,500

Multiply: 0.80(0.70) = 0.0.56 Profit = Net Sales –Cost

= Php10,500 – 8,000
Take the complement percent: 1-0.56 = 0.44 or 44% = Php2,500 gain

Hence the two successive discounts of 20% and 30% is equivalent to 44% V. Activities

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Activity # 2: Complete the missing part
Activity # 4: Analyze it!

Complete the table below. Write your final answer for each number. Use another
sheet of paper for your computation of single trade discount. Round off your A. Analyze each problem. Use another sheet of paper in answering questions of
percentage to two decimal places. single trade discount and discount series. (With solution)

1. How much is the selling price of a washing machine listed at Php1,650.00 if a

Discounted Price 10% discount is given to the customer?
Original Price Trade Discount Discount Rate 2. A coffee maker was sold to a customer at Php700.00 after a 25% discount.
Php6,000 Php4,200 (1) (2) What is the original price of the coffee maker?
(3) Php50 25% (4) 3. A notebook 's price which was originally valued at Php50.00 is reduced to
(5) Php3900 (6) Php2,100 Php25. What is the rate of the discount?
Php20,000 (7) 60% (8) 4. Irene saved a total of Php1,600.00 after a 25% discount that was given to all of
Php8,000 Php6,500 (9) (10) her purchases. How much was her total purchases?
5. The 10% discount on a basketball shirt amounts to Php480.00.Compute the net
price
Activity # 3: Supply the missing part
B. Compute for the equivalent single discount of the following discount series.
Complete the table below by supplying the missing part of the discount series Round off your answer to percentage.
using the complement of percentage.
6. 20% and 10%
Decimal Equivalent of 7. 15% and 35%
Percentage Complement of Complement of 8. 25% and 40%
Percentage Percentage 9. 30% and 40%
11% (1) 0.89 10. 25% and 35%
(2) (3) 0.43
Activity # 5: Solve it!
3% (4) (5)
(6) (7) 0.80
A. Solve the following problems for profit and loss. Write your solution on
14% (8) (9)
another sheet of paper.
82% (10) 0.18

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1. Andrew buys an old scooter for Php15,700.00 and spends Php1,500.00 on its
repairs. If he sells the scooter for Php13,800.00. How much is Andrew’s loss? 1. The cost of an apple is Php72.00 per kilo and has the list price of
Php89.00 per kilo, what is the margin %?
2. Ben bought a notebook at Php30.00 each and sold it for Php40.00. How much A. 81% B. 23.6% C. 19.1% D.17%
Ben’s profit or gain?
2. For the same question on no.1, what is the mark-up if the list price is
3. Joan bought a 32GB memory card at Php500.00 and decided to sell it to her Php89.00 and the cost is Php72.00?
sister for Php400.00. How much is Joan’s loss? A. 81% B. 23.6% C. 19.1% D. 17%

4. Ian bought a laptop from his neighbor at Php18,500.00 each. He sold one of the 3. A convenience store buys 1 gallon of jugs of milk for Php150.00 and
laptop to his cousin at Php15,500.00 while the other one was sold to his friend sells them for Php350.00. What is the margin % they earn on the milk?
at Php20,200.00. How much is Ian’s profit or loss? A. 57.1% B. 1.3% C. 50% D. 13.3%

5. Find the percent gain or percent loss when a car bought for Php925,000.00 is 4. What single discount is equivalent to two successive discounts of 20% and
sold for Php850,000. 10%?
A. 35% B. 30% C. 29% D. 28%
B. Determine whether the statement shows a profit or loss situation. Write P for
profit and L for loss on the blank before each number. 5. What is the complement percent if the given percentage is 40% and 30%?
A. 60% and 70% B. 40% and 30% C. 70% D. 40%
________6. Jona bought a scientific calculator at Php1,500.00 and sold it to her
classmate for Php1,000.00 when the new upgraded model was released 6. Lisa bought an IPhone 11 for Php80,000.00 each and sold it for
after two months. Php120,000.00. How much Lisa’s profit?
________7. Kris bought a pencil at Php20.00 each and sold it for Php25.00. A. Php80,000 B. Php40,000 C. Php120,000 D. Php200,000
________8. The cost of the 10 bottles of strawberry jam is Php1,800.00. Then it
was sold for Php150.00 each. 7. Jose bought 15 chairs for Php3,750.00. Then sold them for Php5,000.
________9. The cost of 10 pieces of banana cue per stick is Php100.00. It was A. Ph1,250 loss C. Php3,750 gain
sold for 20 each. B. Php1,250 gain D. Php50 loss
________10. Gio bought a Harry potter book for Php1,300.00 and decided to sell
it to his best friend for Php1,000.00. 8. Find the net price of a Gucci bag that has a list price of Php16,000.00 and
has a trade discount of 30%.
VI. Assessment A. Php48,000 B. Php11,200 C. Php22,850 D. Php16,000

A. Multiple Choice. Read the following problem. Encircle the letter of the 9. A rice cooker after a 50% discount, was sold at a price of Php800.00. What
correct answer. is the original price of the rice cooker?

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 A. Php400 B. Php1,800 C. Php1,600 D. Php800

10. What single discount is equivalent to two successive discounts of 15% and
25%?
A. 0.6375 B. 36.25% C. 67.35% D. 36.65%