SENIOR HIGH SCHOOL

Region I
ALAMINOS CITY DIVISION
Alaminos City, Pangasinan

Project Write, Write, Write

Alternative Instructional Module

BUSINESS
MATHEMATICS
Quarter 1 – Module 3:
Key Concept of Buying and Selling I

i
Business Mathematics
Alternative Instructional Module
Quarter 1 – Module 3: Key Concept of Buying and Selling I
First Edition, 2020

Republic Act 8293, section 176 states that: No copyright shall subsist in any work
of the Government of the Philippines. However, prior approval of the government agency or
office wherein the work is created shall be necessary for exploitation of such work for profit.
Such agency or office may, among other things, impose as a condition the payment of
royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this module are owned by their respective copyright holders.
Every effort has been exerted to locate and seek permission to use these materials from
their respective copyright owners. The publisher and authors do not represent nor claim
ownership over them.

Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Writer: Michael M. de Ocampo
Editors:
Reviewers:
Illustrator:
Layout Artist:
Management Team: Lorna G. Bugayong, PhD, CESO VI
Schools Division Superintendent
Aguedo C. Fernandez, CESO VI
Assistant Schools Division Superintendent
Dr. Wilfredo E. Sindayen, Division CID Chief
Dr. Ronald B. Radoc, EPS, LRMS
Dr. Adolf B. Medrano., EPS, Mathematics

Printed in the Philippines by:

Department of Education: Region I – Alaminos City Division

Office Address: San Jose Drive, Poblacion, Alaminos City, Pangasinan

Telefax: (075) 205-0644/205-0643

E-mail Address:

ii
 12
BUSINESS
MATHEMATICS
Quarter 1 – Module 3:
Key Concept of Buying and Selling I

iii
Introductory Message
For the facilitator:
Welcome to the Business Mathematics 12 Alternative Delivery Mode (ADM)
Module on Key Concept of Buying and Selling I!

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:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

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.

iv
For the learner:

Welcome to the Business Mathematics 12 Alternative Delivery Mode (ADM)

Module on Key Concept of Buying and Selling I!

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 This will give you an idea of the skills or

Know 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 such
as 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

v
 Answer Key at the end of the module.
What I Have This includes questions or blank
Learned sentence/paragraph to be filled in to
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 In this portion, another activity will be
Activities
given to you to enrich your knowledge or
skill of the lesson learned. This also
tends retention of learned concepts.

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. Don’t 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.

vi
 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 designed and written with you in mind. It is here to
help you master on buying and selling. The scope of this module permits it
to be used in many different learning situations. The language used
recognizes the diverse vocabulary level of students. The lessons are arranged
to follow the standard sequence of the course. But the order in which you
read them can be changed to correspond with the textbook you are now
using.

After going through this module, you are expected to:

1. diffrentiate mark-on, mark down and mark up (ABM_Bm11BS-Ig-1);

and
2. obtain the mark-on, mark down, and mark up of a given price of a
product (ABM_Bm11BS-Ih-2).

1
 What I Know

Read the following questions carefully and choose the letter of the correct
answer. Write your answer on your test notebook.

1. It refers to the amount added to cost to arrive at the original selling

price.
a. Initial mark-on
b. additional mark-up
c. markdown
d. mark-up cancellation

2. It refers to amount added to the original selling price to arrive at a

new selling price.
a. Initial mark-on
b. additional mark-up
c. markdown
d. mark-up cancellation

3. It refers to the decrease in the selling price that does not decrease it
below the original selling price.
a. Initial mark-on
b. additional mark-up
c. markdown
d. mark-up cancellation

4. Refers to reduction in the original selling price

a. Initial mark-on
b. additional mark-up
c. markdown
d. mark-up cancellation

5. A product is marked down 15%; the sale price is 127.46. What was
the original price?
a. 149.95
b. b. 150.95
c. c. 148.95
d. d. 151.95

2
 6. A sells to B an item at 15% profit. B sells the same item to C at 20%
profit. If C pays 1,656 for it. What is the price at which A bought the
item?
a. 1,300
b. b. 1,200
c. c. 1,100
d. d. 1,250

7. Mr. Abarra sold a chair at a loss of 15%. If he had sold at a mark-up

rate of 10%, he would have got 100 more. What is the cost price of the
chair?
a. 200
b. 300
c. 400
d. 500

8. A golf store pays its wholesaler 40 for a certain club, and then sells it
to a golfer for 75. What is the markup rate?
a. 87.5
b. b. 86.5
c. c. 88.5
d. d. 85.5

9. A product originally priced at 55 is marked 25% off. What is the sale

price?
a. 40.25
b. b. 41.25
c. c. 42.25
d. d. 43.25

10. A product is marked down 15%; the sale price is 127.46. What was the
original price?
a. 148.95
b. 147.95
c. 149.95
d. 150.95

11. A person wants to get 20% mark-up rate after selling his product at 20%
discount. Find the required percentage increase in marked price.
a. 155
b. 120
c. 170
d. 150

3
12. A top costs Mang Mario Php280 and he decides to mark it up by 30% of
the selling price. Find the selling price and mark-up for the said top.
a. 400, 120
b. 300, 110
c. 450, 115
d. 250, 130

13. Peter decides to impose a mark-up of Php5 on each pen he sells to his
classmates and friends. This represents a 20% mark-up based on the
selling price. Find the cost and the selling price of the pens Peter sells.
a. 25, 20
b. 30, 25
c. 35, 20
d. 20, 20

14. If the cost of the cellphone case is Php80 and the markup rate on the
cost is 60%, the markup amount is
a. Php48
b. Php32
c. Php54
d. Php26

15. A fancy watch sells for Php180. If there is 45% markup on the selling
price, the markup amount is
a. Php99.00
b. Php400.00
c. Php327.27
d. Php81.00

Lesson Mark -up and Markdown

3

In the business, in order to make profit, it is necessary to sell items

for more than the business owners paid for them. The difference between
the cost of the item and the selling price is called the mark-up. The mark-
up can be percentage of the cost or a percentage of the selling price.
Sometimes it is necessary to reduce the selling price of an item. In this
case, it is called a markdown. Many times items are mark up and then
markdowns.
In Buying and Selling, buyers and sellers must be both winners after
the transaction. Buyers having quality product and the seller having the
profit.
4
 What’s In

Complete the following table. Write your answer on your test notebook.

Selling Price Cost Mark up

a. 480 120
b. 900 200
c. 300 120
d. 600 230
e. 400
f. 500
g. 500
h. 1200

What’s New

Activity 1
Solve the following word problems. Write your answer on your test notebook.

1. Mikaela observes that market goers prefer to buy fish from her
because there is an undersupply of meat in the market this season.
She then decides to increase the price of galunggong by PHP10 per
kilo. If the cost of galunggong is PHP90 per kilo with a 35% mark-up,
what is its new selling price with the additional increase of PHP10?

2. Yvette’s Flower Shop imposes a 45% mark-up on flowers delivered

to them for sale. During All Saint’s Day, however, an additional mark-
on of 25% of the regular selling price is added on. Determine the unit
price of 300 roses worth PHP15000 delivered to Yvette’s Flower Shop
during All Saint’s Day. How much is the selling price of each rose
during All Saint’s Day at this flower shop?

5
 What is It

Read the following concepts for you to gain better understanding about
mark on, markdown and mark up.

Mark-on
- An increase in the price of a retail product that occurs fairly soon after another
increase

Mark Up
- To get profit in a business, a trader increases the cost price and
sells the product. This increment in price is called as "mark-up".
Businesses want to take advantage of peak season and thus,
increase the prices already pegged for their commodities (Licuanan,
2016).
- It is the difference between the cost of the item and its selling price
Mark Down
- To increase the sale, stores will decrease the price of a product by
giving offer or discount. This offer or discount is called as "mark
down". The selling price of an item is reduced. (Bluman, 2006).
❖ The original price is the starting price. It is sometimes called the cost
or wholesale price.

❖ The selling price is the original price plus the markup or minus the
markdown.
COST PRICE:
- the price that a company or store has to pay for the goods it is
going to sell
- the price that has to be spent to produce goods or services before
any profit is added
- It is the price that a merchant pays for an item (Bluman,2006).

OPERATING COST:
- the price (per unit) incurred relative to the production and sale of a
commodity
- It is the price (per unit) incurred relative to the production and sale
of a commodity (Licuanan, 2016).

6
SELLING PRICE:
- the price at which the commodity is sold per unit
- It is the price at which the commodity is sold per unit (Licuanan,
2016).

PROFIT:
- money earned after the cost price and the operating costs are
accounted for after the sale of a commodity
- It is the money earned after the cost price and the operating costs
are accounted for after the sale of a commodity (Licuanan, 2016).

To compute for the SELLING PRICE:

S=C+E+P
Where: S = Selling Price
C = Cost Price
E = Operating Expenses
P = Profit

MARK-ON

MARK-ON = PEAK SELLING PRICE – REGULAR SELLING PRICE

MO = PS – S
Where: MO = Mark-On
PS = Peak Selling Price
S = Regular Selling Price

Mark-on becomes an option for a business owner. The following reasons

may be cited by the learners:
• a calamity has hit the source of a raw material or commodity
therefore affecting its supply
• seasonal demands (Christmas items, Valentines, etc.)
• special occasion is being celebrated (commemorative, death
anniversary, etc.)

Example:
Manang Crising observes that market goers prefer to buy fish from
her because there is an undersupply of meat in the market this season.
She then decides to increase the price of galunggong by PHP10 per kilo. If
the cost of galunggong is PHP90 per kilo with a 35% mark-up, what is its
new selling price with the additional increase of PHP10? By how much is
the rate of mark-up based on cost increased by adding PHP10 to the
regular selling price of the galunggong?

7
Solution:

MU = 0.35  S
= 0.35  90
= PHP31.50

Selling Price before increase:

S = C + MU
= 90 + 31.50
= PHP121.50

Selling Price after increase:

PS = S + MO
= 121.50 + 10
= PHP131.50

31.50+10
Combined Rate of Mark-up and Mark-on = = 0.4611 = 46.11%
90
46.11 – 35 = 11.11%

The mark-up is increased by 11.11% by the additional mark-on of PHP10

imposed by Manang Crising.

MARK-DOWN

MARK-DOWN: the difference between the REGULAR SELLING PRICE and

the SALE PRICE

MARK-DOWN = SELLING PRICE – SALE PRICE

MD = S – SP
where MD = Mark-Down
S = Selling Price
SP = Sale Price

Mark-downs commonly happen when the mall decides to sell their

items at cut down prices to clear their warehouse collection. For instance,
some items which usually sold for PHP150 are sold at 50% off during mall
sales and so the mark-down price is set at PHP75.
Brainstorm with the students on the other reasons why a mark-down is
sometimes thought of as an option for a business owner. They may cite
the following:
• the item is a perishable item and it is best to dispose of it sooner
than simply throw it away
• the item has become dirty or worn out, or possibly out of style
• competition forces the marking down of an item

8
Example:

Carlo was able to buy a pair of shoes regularly priced at PHP3500

for only PHP2100.
a. What was the amount of the mark-down?
b. What was the rate of the mark-down?

Solution:
MD = S – SP
= 3500 – 2100
= PHP1400

𝑀𝐷
MD% =  100%
𝑆
1400
=  100%
3500
= 40%

The amount of the mark-down is PHP1400 which is equivalent to a 40%

mark-down.

MARK-UP

MARK-UP: the difference between the selling price and the cost price
sometimes referred to as MARGIN or GROSS PROFIT

To compute for the MARK-UP:

MARK-UP = SELLING PRICE – COST PRICE
MU = S – C
Where: MU = Mark-up
S = Selling Price
C = Cost Price
Example:
Aling Ana would like to sell little trinkets she purchased from
Divisoria for PHP12 each. If the operating cost is set at 25% of the cost
and she would like to have a 15% profit on the cost of each item,
a. Determine the mark-up price for each trinket.
b. Help Aling Ana determine the selling price for each trinket.

Solution:
a. MU = E + P
= 0.25  12 + 0.15  12
= 3 + 1.80
= PHP4.80

9
The mark-up price for each trinket is PHP4.80.

b. S = C + MU
= 12 + 4.80
= PHP16.80

Aling Ana should sell each trinket at PHP16.80.

What’s More

Activity 2
Solve the given problem. Write your answer on your test notebook.

1. Carlo was able to buy a pair of shoes regularly priced at PHP3500 for
only PHP2100.What was the amount of the mark-down?

2. During a Midnight Madness Sale, a board game regularly priced at

PHP8500 was sold at 55% discount. The cost of the board game is
PHP3450 and expenses are 14% of the regular selling price.How much
was the sale price of the board game?
3. Super Mall paid PHP15000 for a set of dishes. Expenses are 18% of
the selling price while the required profit is 15% of the selling price.
During an inventory sale, the set of dishes was marked down by 30%.
a. What was the regular selling price?

b. What was the sale price?

What I Have Learned

Activity 3
Fill-in the missing word/words to complete the statement. Write your answer
on your test notebook.

1. Cost refers to the purchase ____________of an article.

10
2. Initial markup or mark-on refers to the amount added to _________to
arrive at the original selling price.

3. Additional markup refers to the amount added to original selling price to

arrive at ______________________.

4. Markup cancellation refers to __________in the new selling price that does
not decrease in below the original selling price.
5. Markdown refers to reduction in _________________.

6. Markup based on ____________means that the cost is the base and

therefore taken as 100%.

7. Markup based on __________means the selling price is the base and

therefore, taken as 100%.

8. _____________ may be done temporarily or permanent.

9. The price of a retail product that increases fairly soon after another
increase is called ___________.

10. A temporary markdown is a reduction in __________________of the item to

encourage consumers to increase their demand on a particular product.

What I Can Do

Activity 4
Write a 200 word report/essay about mark-up, mark-on, and mark-down.
Write your answer on your test notebook.
Criteria Levels of Achievement
Highly Not yet
Competent
Competent Competent
(2)
(3) (1)
Quality Information is Information is Information is
accurate. mostly accurate unreliable
Resources are with only few and/or
legitimate minor errors. inaccurate.

11
 One resource may Resources are
be questionable invalid
Content Areas are covered Majority of areas Areas are
fully. are fully covered. incompletely
covered.
Able to draw Able to draw
conclusions, and conclusions, make Present other
provide connections but information
inferences inferences are without
completely. incomplete analysis.

When the quarantine started in the Philippines, many of the essential

goods started to have price hike as the DTI gives restrictions to some of the
essential goods to be bought by bulk. Despite the fact that others begin to
panic buying and stores begin to observe guidelines of IATF, consumers
have a hard time to buy essential goods conveniently.
Now, DTI lifted purchase limits for essential items. Will this action of
DTI affects the prices of commodities? Share your thoughts about this,
citing what have you learned in mark-up, mark-on, and mark-down.

Assessment

Choose the letter of the best answer. Write your answer on your test notebook

1. A top costs Mang Mario PHP280 and he decides to mark it up by 30% of

the selling price. Find the selling price and mark-up for the said top.
a. 300, 120 b. 400, 120 c. 250, 120 d. 350, 120

2. Peter decides to impose a mark-up of PHP5 on each pen he sells to his

classmates and friends. This represents a 20% mark-up based on the
selling price. Find the cost and the selling price of the pens Peter sells.
a. 25, 20 b. 30, 25 c. 35, 20 d. 20, 20

3. A top costs Mang Mario PHP280 and he decides to mark it up by 30% of

the selling price. Find the selling price and mark-up for the said top.
a. 400, 120 b. 300, 110 c. 450, 115 d. 250, 130

12
4. A person wants to get 20% mar-up rate after selling his object at 20%
discount. Find the required percentage increase in marked price.
a. 155 b. 120 c. 170 d. 150

5. A sells to B an item at 15% profit. B sells the same item to C at 20%

profit. If C pays 1,656 for it. What is the price at which A bought the item?
a. 1500 b. 1800 c. 1200 d. 1750

6. Refers to reduction in the original selling price.

a. Initial mark-on
b. additional mark-up
c. markdown
d. mark-up cancellation

7. It refers to the amount added to cost to arrive at the original selling price.
a. Initial mark-on
b. additional mark-up
c. markdown
d. mark-up cancellation

8. It refers to amount added to the original selling price to arrive at a new

selling price.
a. Initial mark-on
b. additional mark-up
c. markdown
d. mark-up cancellation

9. It refers to the decrease in the selling price that does not decrease it below
the original selling price.
a. Initial mark-on
b. additional mark-up
c. markdown
d. mark-up cancellation

10. A product is marked down 15%; the sale price is 127.46. What was the
original price?
a. 149.95 b. 150.95 c. 148.95 d. 151.95

11. A sells to B an item at 15% profit. B sells the same item to C at 20%
profit. If C pays 1,656 for it. What is the price at which A bought the item?
a. 1,300 b. 1,200 c. 1,100 d. 1,250

13
12. Mr. Abarra sold a chair at a loss of 15%. If he had sold at a mark-up
rate of 10%, he would have got 100 more. What is the cost price of the
chair?
a. 200 b. 300 c. 400 d. 500

13. A golf store pays its wholesaler 40 for a certain club, and then sells it to
a golfer for 75. What is the markup rate?
a. 87.5 b. 86.5 c. 88.5 d. 85.5

14. A product is originally priced at 55 is marked 25% off. What is the sale
price?
a. 40.25 b. 41.25 c. 42.25 d. 43.25

15. A product is marked down 15%; the sale price is 127.46. What was the
original price?
a. 148.95 b. 147.95 c. 149.95 d. 150.9

Additional Activities

Activity 5
Answer the following word problems. Write your answer on your test
notebook

1. If a pair of men’s socks sells for Php60 and there is a 30% markup on
the selling price, find the amount of the markup and the cost.

2. If a baking pan sells for P650 and there is a 45% markup on the
selling price, find the amount of the markup and the cost.

3. A cutter set has a markup of P40. The markup on the selling price is
20%. Find the cost and the selling price of the drill set.

4. If a rim of bond paper costs P180 and sells for P250, find the markup
rate based on cost.

5. An analog cellular phone sells for P700 and the markup is P250. Find
the markup rate on cost.

Congratulations!! You did a great job!

Rest and relax a while then move on the next lesson. Good luck!

14
 15
Assessment
1. B
2. A
3. A
4. D
5. C
6. A Additional Activities
7. B 1. M = 18
8. D C = 42
9. C 2. M = 292.50
10. A C = 357.50
11. B 3. S = 200
12. C C = 160
13. A 4. M = 70
14. B R = 38.9%
15. C 5. C = 450
R = 64.3%
What I Know
1. A
What’s More 2. B
What I Have Learned 1. 1,400 3. D
1. price 2. 3,825 4. C
2. cost 3. A.) 22,388.06 5. A
3. new selling price B.) 15,671.64 6. B
What In
4. decrease 7. C
a. 360
5. original selling price 8. A
b. 700
6. cost 9. B
What’s New c. 420
7. selling 10. C
1. 131.50 d. 830
8. markdown 11. C
2. 90.65 e. 520, 120
9. mark-on 12. D
f. 875, 375
10. selling price 13. A
g. 350, 150
14. A
h. 600, 600
15. B
Answer Key
References:

Licuanan, Patricia B., et.al, (2016) Teaching Guide for Senior High
School Business Mathematics.pp.66-82. Quezon City, Philippines. CHED.

Lopez-Mariano, Norma D., et.al, Business Mathematics, 2016

E-SITE:

https://www.onlinemath4all.com/markup-and-markdown-word-problems-
answers.html

For inquiries or feedback, please write or call:

Department of Education – City Schools Division of Alaminos

San Jose Drive, Poblacion, Alaminos City, Pangasinan

Telefax: (075) 205-0644/205-0643

Email-Address:

16