BUSINESS MATHEMATICS

Learning Activity Sheet – Formative Test

First Quarter – Week 6

Name: Jermaine G. Cruz Section: FAYOL

I. MARGIN, MARK-UP, and TRADE DISCOUNT

II. LEARNING COMPETENCIES

1. Differentiate mark-up from margins (ABM_BM11B S-Ih-3)
2. Describe how gross margins is used in sales (ABM_BM11B S-Ih-4)
3. Compute single trade discounts and discount series.

III. OBJECTIVE(S)
1. Differentiate mark-up from margins (ABM_BM11B S-Ih-3)
2. Describe how gross margins is used in sales (ABM_BM11B S-Ih-4)
3. Compute single trade discounts and discount series.

IV. ACTIVITIES

Activity 1
Directions: With the given Venn Diagram below, compare and contrast. Margin and Markup
using your own words. Indicate at least three differences (two points for each answer) and
similarities (1 point for eachanswer) for both Margin and Mark up. Write your answers legibly.
Activity 2. Essay. From your own understanding, why does gross margin matter?
Discuss your answer. (Rubrics: Content/Information Integration - 5 points, Organization
& Format – 3 points, Grammar, Usage & Mechanics – 2 points)

Gross margin is net sales less the cost of goods sold (COGS). In other words, it's
the amount of money a company retains after incurring the direct costs associated with
producing the goods it sells and the services it provides. It is crucial since it is the first
step toward achieving a healthy net profit. The higher the gross margin, the more capital
a company retains, which it can then use to pay other costs or satisfy debt obligations.
When your gross profit margin is high, you're more likely to have a high operating profit
margin and a high net income. The bigger your gross profit margin, the faster you hit
break-even and begin earning profits from basic business activities for a newer
business.

Activity 3. Problem Solving. Solve the following worded problems. Show your
computations. (2 points each)

1. My regular beef supplier gives me a 5% discount on my meat purchases every week. If

the price of beef brisket this week is PhP375 per kilo and I am planning to buy 1.5 kilos,
how much trade discount will I receive from this purchase?
2. What is the equivalent single trade discount for a trade discount series of 40%, 12.5%, 8
1
3
%, and 2%?
3. A distributor was able to buy an item for PHP736 after a trade discount series of 15/10/4.
How much was the original selling price of this item?
4. A manufacturer sells mobile phones to dealers at P15,500 with a discount series of 40%,
25% and 5%.
a) Find the net price
b) Find the single equivalent rate of discount
c) Find the amount of discount.
5. The 30% discount on a power drill in a hardware store is P1,250.50.
a) Find the list price
b) Find the net price.

.
Solutions: