SOLVING PROBLEMS INVOLVING DIRECT,

INVERSE AND PARTITIVE PROPORTION &

DIFFERENTIATING MARK-ON, MARK-DOWN
AND MARK-UP
for Business Mathematics
Senior High School (ABM)
Quarter 1 / Week 4

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 FOREWORD

This self-learning kit will serve as a guide in solving

problems involving direct, inverse and partitive proportion &
mark-on, mark-down and mark-up of the price of a product.
It will be your aid as you learn new ideas and enrich your
existing knowledge about mathematical and business
concepts.

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 Lesson 1 SOLVING PROBLEMS INVOLVING DIRECT,
INVERSE AND PARTITIVE PROPORTION

OBJECTIVES:
K: Differentiate direct, inverse, and partitive proportion;
S: Solve problems involving direct, inverse, and partitive
proportion; and
A: Appreciate the application of proportions in real-life.

LEARNING COMPETENCY:
Solving problems involving direct, inverse and partitive
proportion (ABM_BM11RP-If-4)

I. What Happened

Let us have a recall!

A ratio is a comparison of two numbers or two quantities that are

expressed in the same unit of measure. It can be written as:
a
a is to b; a : b, or
b

A sari-sari store sells the following items: ball pen costs ₱15, yellow pad

paper ₱45 and notebook at ₱20.

The ratio of school supplies prices is 15:45:20 or 3:9:4
A proportion is an equation showing two ratios that are equal. It can
be written in two ways:
a c
• Two equal fractions =
b d

• Using a colon a: b= c:d

Since the ratios are equal, we get
3 ad = bc
•
•
 Kinds of Proportion

Three Kinds of Proportion

1. Direct Proportion – a proportion wherein an increase in one of two values
results in an increase in the other; or a decrease in one of two values results
in a decrease in the other.
2. Indirect Proportion – a proportion wherein an increase in one of two
values results in a decrease in the other value; or a decrease in one of two
values results in an increase in the other
3. Partitive Proportion – a proportion wherein a whole is divided into parts
proportional to the given ratio

PRE-TEST:
Multiple Choice. Encircle the letter that corresponds the correct answer.
1. “Ten columnar books cost ₱250. How many columnar books can you buy with
₱375?” This problem illustrates what kind of proportion?
A. Direct proportion B. Inverse proportion
C. Partitive Proportion D. None of these
2. “A bus takes 6 hours to travel to Bacolod City at the rate of 56 km/hr. How many
hours will it take the same bus at the rate of 66 km/hr?” This problem illustrates what
kind of proportion?
A. Direct proportion B. Inverse proportion
C. Partitive Proportion D. None of these
3. At the price of 3 oranges for ₱12.60, how many oranges can be bought for
₱37.80?
A. 1 B. 9 C. 12 D. 158
4. If 14 men can dig a pit in 10 days. How many men can dig it in 7 days?
A. 10 B. 20 C. 30 D. 40
5. A business’s return of investment will be allocated on two business partners: Flor
and Jose in the ratio of 3:2, respectively. If the total income is ₱ 2,400,000. How
much will Flor receive?
A. ₱480,000 B. ₱960,000 C. ₱1,440,000 D. ₱2,400,000

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II. What You Need to Know

When two ratios are equal, this forms a proportion.

In general, when:
means

a :b=c :d

extremes
a c
=
b d
a x d=b x c
Where a and d are called the extremes while b and c are the means.
Using principle of proportion, the product of the means is equal to the
product of the extremes.
Find the values of x in the equation
4 : 5 = x : 20
Find the product of the means
and the extremes 5(x) = 4(20)
80
x=
5
x = 16
Or
4 x
Use cross multiplication =
5 20

5(x) = 4(20)
80
x=
5
x = 16

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DISCUSSION
Solving Problems on Three Kinds of Proportion
1. Direct Proportion
Steps in Problem Solving Involving Direct Proportion

Step 1. Set up the proportion. The order of the second ratio should be in the same
order as in the first ratio. In fraction form, either both the numerators and both
denominators, or the numerator and the denominator of each fraction should
have the same unit.
Step 2. Solve the missing terms. Use the principle that the product of the means is
equal to the product of the extremes or cross multiplication process.

Illustrative Examples:

Example 1

Ana was able to save ₱300 in 3 days. At this rate how much money will she save
in 10 days?
Steps:
a. Set up the proportion.
money : days = money : days
300 : 3 = x :10
or
money money
In fraction form: =
days days
300 x
= 10
3

b. Solve the missing terms.

300 x
300 : 3 = x :10 or 3
= 10

3(x) = 300(10) 3(x) = 300(10)

x 3000 x 3000
= =
3 3 3 3
x = ₱1,000 x = ₱1,000
On the illustration above, when the number of days increase, the amount of
savings also increases.

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 Example 2

If two pencils cost ₱8.00, how many pencils can you buy with ₱96.00?
Step 1 Set up the proportion.
No. of pencils : cost = No. of pencils : cost
2 : 8 = x : 96
Step 2. Solve for the missing term by using the principle on ratio and proportion.
8 x = 2 (96)
8 x = 192
x = 24

24 pencils can be bought by ₱96.00

Example 3

There are 6 tetra packs of honey blend iced tea for every 8 tetra packs of black
berry iced tea in a box. If there are 48 tetra packs of honey blend iced tea, how
many packs of black berry iced tea are there?
Solution:
Step 1 Set up the proportion. Make sure that the order of terms in the first ratio is
the same as the other of terms in the second ratio. Represent the number of
tetra packs of black berry iced tea by x.

honey blend iced tea:black berry iced tea=honey blend iced tea:black berry iced tea

6 ∶ 8 = 45 ∶ x
Step 2. Solve for the missing term by using the principle on ratio and proportion.
The product of the means equals the product of the extremes.
6:8=45:x
(6)(x)=(8)(45)
x 360
=
6 6

x=60
There are 60 tetra packs of black berry iced tea.
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 Example 4

Chef Toby uses 4,000 grams of cake flour to make 6 banana cakes. How many
grams of cake flour is needed to make a. 3 banana cakes b. 9 banana cakes?

Solution:
Step 1 Set up the proportion.
grams of cake flour : banana cakes = grams of cake flour : banana cakes

a. 4,000 : 6 = x : 3

b. 4,000 : 6 = x : 9
Step 2. Solve for the missing term by using the principle on ratio and proportion.

a. 4,000 : 6 = x : 3
6x = 4,000(3)
x 12,000
=
6 6
x = 2,000 g

b. 4,000 : 6 = x : 9
6x = 36,000(9)
x 36,000
=
6 6
x = 6,000 g
2,000 grams of cake flour is needed to bake 3 banana cakes and 6,000
grams of cake flour for 9 banana cakes respectively.

2. Inverse Proportion
Steps in Problem Solving Involving Inverse Proportion

Step 1. Set up the proportion. Remember the relationship more : less = more : less
in indirect proportion. The first term of the first ratio corresponds to the second term
of the ratio and the second term of the first ratio corresponds to the first term of
the second ratio.

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Step 2. Solve the missing terms. Use the principle that the product of the means is
equal to the product of the extremes or cross multiplication process.

Illustrative Examples:

Example 1

Five artists can decorate a stage for a school program in six hours. At the same
rate, how many artists are needed to finish decorating the stage in three hours?
Steps:

1. Set up the proportion.

In ratio form: more men : less men = more hours : less hours
x:5=6:3
or
more men more hours
In fraction form: =
less men less hours
x 6
=
5 3

2. Solve the missing terms.

x
x :5=6 : 3 or =6
5 3

3(x) = 5(6) 3(x) = 5(6)

x 30 x 30
= =
3 3 3 3
x = 10 artists x = 10 artists
In the problem above, since the job must be finished in a shorter period of
time, then we need more artists to decorate the stage.

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 Example 2

Sci has enough money for a 15-day vacation if she spends ₱600 a day. For how
many days will her money last if she decides to spend only ₱500 a day?

Step 1. Set up the proportion.

more days∶ less days = more money∶ less money
x ∶ 15 = 600 ∶ 500
Step 2. Solve for the missing term by using the principle on ratio and proportion.
The product of the means equals the product of the extremes.

more days∶ less days = more money∶ less money

x ∶ 15 = 600 ∶ 500
(500) (x) = (600) (15)

500 x = 9000
x = 9000/500
x = 18 days

Sci’s money will last for 18 days.

Example 3

Ten workers can finish a piece of job in 3 days. How many days will the same job
be done if there are only 5 workers?
Step 1 Set up the proportion
more workers : less workers = more days : less days
10 : 5 = x : 3
Step 2. Solve for the missing term by using the principle on ratio and proportion
10 ∶ 5 = x ∶ 3
(5)(x) = (10)(3)
5 x = 30

10
 x 30
=
5 5
x = 6 days
It takes 6 days to finish the job for 5 workers.

Example 4

Sheryl travels around the city by bicycle in 4 hours at the rate of 45 km/hr. If she
wants to travel around the same city in 3 hours. What should be her speed?
Step 1. Set up the proportion.
more speed : less speed = more time : less time
x : 45 = 4 : 3
Step 2. Solve for the missing term by using the principle on ratio and proportion
x 4
=
45 3
3(x) = 4(45)
𝑥 180
=
3 3
x = 60 km/hr
As the speed increases to 60km/hr, the time of travel decreases to 3 hours.

3. Partitive Proportion
Steps in Problem Solving Involving Partitive Proportion

Step 1 Add the terms in the ratio.

Step 2 Divide the total number of units by the terms in the ratio.
Step 3. Multiply each term in the ratio by the result in Step 2.

Illustrative Examples:

Example 1

There are 42 fruits in a basket consisting of papayas, oranges and avocados. The
ratio of papayas to oranges to avocados is 4:2:1. How many each fruit are there
in the basket?

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Steps
Step 1: Add the terms in the ratio
4:2:1= 4+2+1
=7
Step 2: Divide the total number of units by the terms in the ratio
42
=6
7
Step 3. Multiply each term in the ratio by the result in Step 2.
a. No. of papayas: 4 x 6 = 24
b. No. of oranges : 2 x 6 = 12
c. No. of avocados : 1 x 6 = 6

There are 24 papayas, 12 oranges, and 6 avocados in the basket.

Example 2

Divide 480 in the ratio 2:3:5

Step 1. Add the terms in the ratio.
2:3 :5 =2+3+5
= 10
Step 2. Divide the total number of units by the terms in the ratio.
480
= 48
10
Step 3. Multiply each term in the ratio by the result in Step 2.
a. 2 x 48 = 96
b. 3 x 48 = 144
c. 5 x 48 = 240
480 in the ratio of 2:3:5 = 96,144, 240

Example 3

Jhunrech, Marife and Toneth are business partners. They agreed to divide their
profits in the ratio of 1:2:3. How much should each receive if the total profit is
₱12,000.00?
Step 1. Add the terms in the ratio.

12
 1:2 :3 =1+2+3
=6
Step 2. Divide the total number of units by the terms in the ratio.
12,000
= 2,000
6

Step 3. Multiply each term in the ratio by the result in Step 2.

a. 1 x 2,000 = 2,000
b. 2 x 2,000 = 4,000
c. 3 x 2,000 = 6,000

Jhunrech will receive ₱2,000, Marife will receive ₱4,000 and Toneth will
receive ₱6,000.

Example 4

The wedding coordinator allocated the revenue of the wedding among the
florists, designer, and stylists in a ratio of 4 is to 2 is to 2. If the total revenue for the
event was ₱150,000.00 how much will the designer receive?
Step 1. Add the terms in the ratio.
4 : 2 :2 =4 + 2 + 2
=8
Step 2. Divide the total number of units by the terms in the ratio.
150,000
= 18,750
8

Step 3. Multiply each term in the ratio by the result in Step 2.

a. 4 x 18,750 = 75,000
b. 2 x 18,750 = 37,500
c. 2 x 18,750 = 37,500

The designer will receive ₱37,500.

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III. What Have I Learned

SUM IT UP!
Steps in Solving the Three Kinds of Proportion
1. Direct Proportion

Step 1. Set up the proportion. The order of the second ratio should be in the
same order as in the first ratio. In fraction form, either both the numerators
and both denominators, or the numerator and the denominator of each
fraction should have the same unit.
Step 2. Solve the missing terms. Use the principle that the product of the
means is equal to the product of the extremes or cross multiplication
process.

2. Inverse Proportion
Step 1. Set up the proportion. Remember the relationship more : less = more
: less in indirect proportion. The first term of the first ratio corresponds to the
second term of the ratio and the second term of the first ratio corresponds
to the first term of the second ratio.

Step 2. Solve the missing terms. Use the principle that the product of the
means is equal to the product of the extremes or cross multiplication
process.

3. Partitive Proportion
Step 1 Add the terms in the ratio.
Step 2 Divide the total number of units by the terms in the ratio.
Step 3. Multiply each term in the ratio by the result in Step 2.

POST TEST:

Multiple Choice. Choose the letter that corresponds the correct answer.
1. The exchange rate of peso to a dollar in 2019 is ₱ 51.00. How much do you get
for $ 7.5?
A. ₱ 7.25 B. ₱ 51.35 C. ₱ 220.05 D. ₱ 382.50

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3. Partitive Proportion
2. A baker uses 2,500 grams of flour to make 4 loaves of sliced bread. How many
grams of flour is needed to make 5 loaves of bread?
A. 20 grams B. 100 grams C. 3,125 grams D. 2,500 grams
3. It takes 4 seamstresses to sew a gown for 6 hours. How long will it take for 7
seamstresses to do a gown if they work together?
A. 1 3/7 B. 2 3/7 C. 3 3/7 D. 4 3/7
4. Last summer of 2020, Nashtee, Johnren, and Panfilo sold kites in the ratio of 2:3:4.
Together, they sold 36 kites. How many kites did each man sell?
A. 8,12,16 B. 12,16,8 C. 16,12,18 D. 12,8,16
5. Mr. Mendez donated ₱60,000 for an upcoming school event. Filipino club,
Social Studies Club and the English club will share the amount in the ratio of 4:3:3.
How much will English Club receive?
A. ₱6,000 B. ₱12,000 C. ₱18,000 D. ₱24,000

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 Lesson 2 DIFFERENTIATING MARK-ON, MARK-DOWN
AND MARK-UP

OBJECTIVES:
K: Define and differentiate mark-on, mark-down and mark-up;
S: compute for the mark-up, mark-down, mark-on and margin
percentages of given commodities or services based on
stated conditions; and
A: appreciate the application of mark-up, mark-down and
mark-on on business enterprises in a changing environment.

LEARNING COMPETENCY:
Differentiating Mark-on, Mark-down and Mark-up and obtain
Mark-on, Mark-down, and Mark-up given price of a product.
ABM_BM11BS-Ig-1

I. What Happened
PRE-ACTIVITY:
Assume that you will be planning for a food sale in front of your house and
you decided to sell banana cue. Upon planning on your new business, you come
up with a thought on how much will a stick of banana cue cost. What would be
your basis in determining the cost of a stick of banana cue? In order to determine
the cost per stick of banana cue, list all the ingredients and materials you will need
for your banana cue business:

Raw Materials Expenses

banana (saba) space for selling
sticks cook’s salary
sugar vendor’s salary
cooking oil tissue
wrapper for take-out orders
LPG

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 Based on the above list of materials and expenses needed to start your
business, you will estimate the cost of the raw materials you will need for the
banana cue.

Raw Materials Estimated Cost

banana (saba) ₱2 per piece
sticks ₱20 per bundle of 100
sugar ₱50 per kilo
cooking oil ₱50 per liter

How many sticks of banana cue do they intend to sell per day? Let us say that
you are going to sell 100 sticks per day. Based on this number, you will estimate
the amount of raw materials per day you would need and come up with the
following:

● 200 pieces of bananas (saba)

● 1 kg of sugar
● 1 liter of oil
● 100 sticks

From here, the cost of the raw materials per day can already be easily
determined.

Raw Materials Cost

banana (saba) ₱ 400
sticks ₱ 20
sugar ₱ 75
cooking oil ₱ 50
TOTAL ₱ 545

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Now it is time to account for the other additional expenses.

Other Expenses Cost

space for selling 5% of profit
cook's salary ₱400
vendor's salary ₱400
tissue ₱50
wrapper (for take-out orders) ₱50
TOTAL ₱900 + 5% profit

Note that it is possible to resort to avoiding the expenses for the cook’s and
vendor’s salaries by assuming that roles yourself without expecting any pay. Still,
it is important to note that these are expenses that actual business owners must
plan for.

Based on these estimates, what would be your intended selling price of your
banana cue per stick?

II. What You Need to Know

DISCUSSION
Cost price is 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. This is usually computed on a per unit basis. In the previous
activity, the cost price refers to the price of the raw materials needed to produce
the banana cue.

Operating cost is the price (per unit) incurred relative to the production and
sale of a commodity. In the previous example, the operating cost would be those
additional expenses that have to be incurred in the actual selling of the banana
cue such as expenses for preparing the space where you sell your banana cue,
salaries of manpower and other incidental expenses.

Some businesses may choose to include the cook’s salary as part of the
cost price. Note that this is acceptable. In fact, if the only product of the business
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is banana cue, then the cook’s salary can reasonably be included in the cost
price. If, however, the banana cue is not the only product being sold by the
business, then it might be a better option to include the cook’s salary as part of
the operating expense of the business.

Selling price is the price at which the commodity is sold per unit.

Profit is money earned after the cost price and the operating costs are
accounted for after the sale of a commodity. In the activity, the profit would be
the difference between the selling price of banana cue (multiplied by 100,
assuming all 100 sticks are sold out) and the total of the costs of the raw materials
and other expenses detailed in the previous activity.

Mark-up is the difference between the selling price and the cost price. This
is sometimes referred to as margin or gross profit.

REMEMBER
To compute for the selling price,

𝑺𝑬𝑳𝑳𝑰𝑵𝑮 𝑷𝑹𝑰𝑪𝑬 = 𝑪𝑶𝑺𝑻 𝑷𝑹𝑰𝑪𝑬 + 𝑶𝑷𝑬𝑹𝑨𝑻𝑰𝑵𝑮 𝑪𝑶𝑺𝑻 + 𝑷𝑹𝑶𝑭𝑰𝑻

𝑺 = 𝑪 + 𝑬 + 𝑷
where:
S selling price
C cost price
E operating expenses
P profit

To compute for the selling price,

𝑴𝑨𝑹𝑲 − 𝑼𝑷 = 𝑺𝑬𝑳𝑳𝑰𝑵𝑮 𝑷𝑹𝑰𝑪𝑬 – 𝑪𝑶𝑺𝑻 𝑷𝑹𝑰𝑪𝑬

𝑴𝑼 = 𝑺 – 𝑪

where:
MU mark-up
S selling price
C cost price
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 Note the significant difference between mark-up and profit. While profit
accounts for both the cost price and operating cost incurred by the business
owner, mark-up only accounts for the cost of raw materials necessary to produce
the item being produced for sale.

Example 1.
Aling Ana would like to sell little trinkets she purchased from Divisoria for ₱12 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:
Given:
𝐶 = ₱12
𝐸 = 25% 𝑜𝑓 𝑡ℎ𝑒 𝐶𝑜𝑠𝑡 = 0.25 × 12
𝑃 = 15% 𝑜𝑓 𝑡ℎ𝑒 𝐶𝑜𝑠𝑡 = 0.15 × 12
What is asked?
Mark-up price MU, and Selling price S Tip:
Since 𝑀𝑈 = 𝑆 – 𝐶 and
𝑆 = 𝐶 + 𝐸 + 𝑃, it follows
a. 𝑀𝑈 = 𝐸 + 𝑃 that
= (0.25 × 12) + (0.15 × 12) = 3 + 1.80 𝑴𝑼 = 𝑬 + 𝑷
= ₱4.80

The mark-up price for each trinket is ₱4.80.

Tip:
b. 𝑆 = 𝐶 + 𝑀𝑈 Since 𝑀𝑈 = 𝑆 – 𝐶, by algebraic
= 12 + 4.80 = ₱16.80 manipulation, it follows that
𝑺 = 𝑪 + 𝑴𝑼
Aling Ana should sell each trinket at ₱16.80.

Example 1 is a very common scenario for a startup business. Now, let’s

proceed to another example or scenario.

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 Example 2.
A jacket which costs ₱1,350 is being sold at ₱2,025. What is the rate of mark-up based on cost?

Solution:
2025 − 1350 Tip:
𝑅𝑎𝑡𝑒 𝑜𝑓 𝑀𝑎𝑟 − 𝑢𝑝 = = 0.5
1350 Mark-up based on its cost:
𝑴𝑼
𝑴𝑼𝑪% = × 𝟏𝟎𝟎%
𝑪
𝑴𝑼𝑪% = 𝟓𝟎%

The jacket has a 50% mark-up based on its cost.

Note that what is being asked in Example 2 is the rate of mark-up. As

discussed in the previous chapter, rate is a ratio that compares two quantities. In
example 2, the two quantities being compared are the mark-up and the cost of
the jacket. It would be very essential that you understand the problem before
solving it.

Example 3.
A top costs Mang Mario ₱280 and he decides to mark it up by 30% of the selling price. Find the
selling price and mark-up for the said top.

Solution:
100% – 30% = 70%
Cost of top is 70% of the selling price. Tip:
𝐶 = 𝑆 – 𝑀𝑈
280
𝐶 = 0.70𝑆280 = 0.70𝑆𝑆 = 𝑆 = ₱400
0.70 𝐶 = 𝑆 – 0.30 𝑥 𝑆 𝑠𝑖𝑛𝑐𝑒 𝑀𝑈
= 30% 𝑥 𝑆
Mang Mario sells the top at ₱400. 𝐶 = (1 – 0.3) 𝑥 𝑆
𝐶 = 0.70 𝑥 𝑆
𝑀𝑈 = 𝑆 – 𝐶𝑀𝑈 = 400 – 280𝑀𝑈 = ₱120

The mark-up on the top is ₱120.

Another common scenario for a startup business has been illustrated in example
3. Sometimes mark-up is based on rate like in Example 3. Now, pretend that
21
during the actual food sale, you realize that there is such a high demand for
your banana cue and that buyers can easily afford the selling price you have
pegged. Some businesses will want to take advantage of this peak season and
thus, increase the prices already pegged for their commodities. This is what we
call the mark-on.

REMEMBER
To compute for the selling price,

𝑴𝑨𝑹𝑲 − 𝑶𝑵 = 𝑷𝑬𝑨𝑲 𝑺𝑬𝑳𝑳𝑰𝑵𝑮 𝑷𝑹𝑰𝑪𝑬 – 𝑹𝑬𝑮𝑼𝑳𝑨𝑹 𝑺𝑬𝑳𝑳𝑰𝑵𝑮 𝑷𝑹𝑰𝑪𝑬

𝑴𝑶 = 𝑷𝑺 – 𝑺
where:
PS peak selling price
S regular selling price
Some of the common reasonable instances where mark-on is observed:

• 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.)

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In order to understand what mark-on is, consider the next example.

Example 4.
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 ₱10 per kilo. If the cost of galunggong is ₱90 per kilo with a 35% mark-up, what
is its new selling price with the additional increase of ₱10? By how much is the rate of mark-
up based on cost increased by adding ₱10 to the regular selling price of the galunggong?

Solution:
𝑀𝑈 = 0.35 × 𝑆𝑀𝑈 = 0.35 × 90𝑴𝑼 = ₱𝟑𝟏. 𝟓𝟎

Selling price before increase:

𝑆 = 𝐶 + 𝑀𝑈𝑆 = 90 + 31.50𝑺 = ₱𝟏𝟐𝟏. 𝟓𝟎

Selling price after increase:

𝑃𝑆 = 𝑆 + 𝑀𝑂𝑃𝑆 = 121.50 + 10𝑷𝑺 = ₱𝟏𝟑𝟏. 𝟓𝟎

31.50 + 10
𝐶𝑜𝑚𝑏𝑖𝑛𝑒𝑑 𝑅𝑎𝑡𝑒 𝑜𝑓 𝑀𝑎𝑟𝑘 − 𝑢𝑝 𝑎𝑛𝑑 𝑀𝑎𝑟𝑘 − 𝑜𝑛 = = 0.4611 = 46.11%
90

Hence, the mark-up is increased by 46.11% – 35% = 11.11% by the additional mark-on of ₱10
imposed by Manang Crising.

Notice that on Example 4 Manang Crising takes the opportunity and raised
the price of galunggong. Remember that the original price of galunggong
already has a mark-up; because of the demand and she has the supply, she then
raised the price per kilo (remember the law of Supply and Demand in your
Economics subject during Junior High School). Such instance is an example of a
mark-on.

23
 Now let’s consider another example of a mark-on.

Example 5.
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 ₱15,000 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?

Solution:
15000
𝑈𝑛𝑖𝑡 𝑃𝑟𝑖𝑐𝑒 = = ₱50
300

𝑆 = 𝐶 + 𝑀𝑈𝑆 = 50 + 22.50𝑺 = ₱𝟕𝟐. 𝟓𝟎

𝑀𝑈 = 0.45 × 𝐶𝑀𝑈 = 0.45 × 50𝑴𝑼
= ₱𝟐𝟐. 𝟓𝟎
𝑃𝑆 = 𝑆 + 𝑀𝑂𝑃𝑆 = 72.50 + 18.15𝑷𝑺
= ₱𝟗𝟎. 𝟔𝟓
𝑀𝑂 = 0.25𝑆𝑀𝑂 = 0.25 × 72.50𝑀𝑂
= ₱181.125𝑴𝑶
≈ ₱𝟏𝟖𝟏. 𝟏𝟓
Each rose sells for ₱90.65 at Yvette’s Flower Shop during All Saint’s Day.

Previous examples show an “increase” of price; hence, mark-up or mark-

on. Let’s go back to our pre-activity. This time consider that the sale of your
banana cue is coming in slow. You may need to sell it at a Discounted Price or
what is commonly known as the Sale Price.

Mark-down is the difference between the regular selling price and the sale
price.

REMEMBER
To compute for the mark-down,

𝑴𝑨𝑹𝑲 − 𝑫𝑶𝑾𝑵 = 𝑺𝑬𝑳𝑳𝑰𝑵𝑮 𝑷𝑹𝑰𝑪𝑬 – 𝑺𝑨𝑳𝑬 𝑷𝑹𝑰𝑪𝑬

𝑴𝑫 = 𝑺 – 𝑺𝑷
where:
MD mark-down
S selling price
SP sale price

24
 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 ₱150 are sold at 50% off during mall sales and so the mark-
down price is set at ₱75. Other instances of mark-down are 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

Remember that rates of mark-downs are always computed based on the

selling price. Note that it is possible that instead of making the business owner earn
a positive profit, selling an item on sale sometimes gives rise to a negative profit.
In this case, the profit is said to be a loss.

When an item is given a selling price where the profit ends up being zero, this
is said to be the break-even price. In this case, the selling price is simply equal to
the total of the cost price and the operating expenses.

Example 6.
Carlo was able to buy a pair of shoes regularly priced at ₱3,500 for only ₱2,100.
a. What was the amount of the mark-down?
b. What was the rate of the mark-down?
Solution:
𝑀𝐷 = 𝑆 – 𝑆𝑃𝑀𝐷 = 3500 – 2100𝑀𝐷 = ₱1400
𝑀𝐷
𝑀𝐷% = × 100%𝑀𝐷%
𝑆
1400
= × 100%𝑀𝐷%
3500
= 40%
The amount of the mark-down is ₱1,400 which is equivalent to a 40% mark-down.
For buyers to save money, they wait until a “sale” has been offered by the
store that they want to purchase the product they like; and for the business side,
make sure that whenever you mark-down your products see to it if you still have

25
a profit after mark-down. Consider the next example wherein a sale has been
made on a board game.

Example 7.
During a Midnight Madness Sale, a board game regularly priced at ₱8,500 was sold at 55%
discount. The cost of the board game is ₱3,450 and expenses are 14% of the regular selling
price.
a. What was the amount of the mark-down?
b. What was the rate of the mark-down?
Solution:
a.
100% – 55% = 45% (The sale price is 45% of the selling price.)

𝑆𝑃 = 0.45 × 𝑆𝑆𝑃 = 0.45 × 8500𝑆𝑃 = ₱3,825

The sale price of the board game is ₱ 3,825.
b.
𝐶𝑇𝑂𝑇𝐴𝐿 = 𝐶 + 𝐸𝐶𝑇𝑂𝑇𝐴𝐿 = 3450 + 0.14 × 8500𝐶𝑇𝑂𝑇𝐴𝐿 = ₱4,640
𝑃 = 𝑆𝑃 – 𝐶𝑇𝑂𝑇𝐴𝐿 𝑃 = 3825 – 4640𝑃 = −₱815 (𝑙𝑜𝑠𝑠)

The loss made on the sale was ₱815.

The very nature of a business is to gain profit. Hence, before marking-down

a product you are selling, compute the costs and expenses you have for such
item before giving a discount for it. Else, you might gain a negative income (loss)
in the end.

Notice that Examples 6 and 7 can also be solved using the formula for
discount. Mark-down and discount are the same in some aspect. Discounts will
be discussed in the succeeding topic.

26
III. What Have I Learned
Understanding how inflation and deflation of prices is vital in any
commercial enterprise in addition to the customer. These matters are what we
called mark-up, mark-down and mark-on. We can use this learning and apply it
in our daily lives, like when we are in a business posting mark-downs for sale, and
mark-ups and mark-on for profit on your reselling. These are the most common
applications that we must know.

POST TEST:
Read and understand each item carefully, then solve for what is being asked.

1. Julia buys a notebook with a cost of ₱45. The rate of mark-up based on cost
is 25%. Find the (a) selling price and the (b) mark-up.
2. Peter decides to impose a mark-up of ₱5 on each pen he sells to his
classmates and friends. This represents a 20% mark-up based on the selling
price. Find the (a) cost and the (b) selling price of the pens Peter sells.
3. Find the (a) regular selling price and the (b) cost price of memorabilia items
being sold for ₱500 if the mark-up is set at a rate of 25% of the cost price
with an approved 15% mark-on rate based on the cost price included
because of a special event.
4. Super Mall paid ₱15,000 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?
c. What was the profit or loss?
5. Harry’s Hardware realizes a markup of ₱34.50 if it sells an item at a markup
of 40% of the selling price.
a. What is the regular selling price?
b. What is the cost?
c. What is the rate of markup based on cost?
d. If overhead expenses are 27% of cost, what is the break-even price?
e. What is the operating profit or loss, if the article is sold for ₱75?

27
 28
1. (a) ₱56.25
(b) ₱11.25
2. (a) ₱20
(b) ₱25
3. (a) ₱357.14
(b) ₱446.43
4. (a) ₱22,388.06
(b) ₱15,671.64
(c) Loss of ₱3,358.21
5. (a) ₱86.25
(b) ₱51.75
(c) 66.7%
(d) ₱65.72
(e) ₱9.28
Lesson 2 Lesson 1
ANSWER KEY ANSWERS KEY
 SYNOPSIS
Lesson 1
This SLK (Self-Learning Kit) is about
solving problems involving direct,
inverse and partitive proportion.
Here you will learn the steps in
solving the three kinds of
proportion.
Real-life business applications are
provided to help them increase
self-confidence as they think
critically and gradually experience
growth and success in doing
mathematics.
Explore and enjoy learning how to
solve direct, indirect and partitive
proportion in SLK.
29
SYNOPSIS
Lesson 2
This SLK (Self-Learning Kit) utilizes
problem-solving approach for the
topic on Mark-up, Mark-down and
Mark-on in Business Math. This
module is a one-week lesson. Pre-
activity starts with a situation where
the learner is being set to put up a
banana cue business, and then
introduced with the basic concept
of cost, expenses, profit/loss, mark-
up, mark-down, and mark-on. Its
problem-solving approach is made
simple and examples used are
localized and easy for the students to
relate in order to help facilitate
independent learning while learners
are at home.
 ABOUT THE AUTHORS

Lesson 1 SOLVING PROBLEMS INVOLVING DIRECT, INVERSE

AND PARTITIVE PROPORTION

FLORAMAE TUBOG SIOCO is an Accountancy Business and

Management (ABM) teacher at Dauin National High School Division
of Negros Oriental. She currently teaches specialized, applied, and
core subjects for Senior High School students.
She graduated Bachelor of Science in Industrial Engineering from the
University of San Jose – Recoletos in Cebu City. She earned her
degree in Master of Business Administration at Foundation University,
Dumaguete City. She took her Continuing Program Education at
Negros Oriental State University (NORSU), which made her qualified to
teach in the Department of Education.
She was a faculty member of the School of Industrial Engineering,
Foundation University for 20 years. After 16 years, she became an
Acting Dean for two years in the same department and consequently
became the Dean until she retired.
Her experiences strengthened her in materializing this Self-Learning
Kit.

Lesson 2 DIFFERENTIATING MARK-ON, MARK-DOWN AND

MARK-UP

Mr. Mark Anthony T. Lumagas finished his Bachelor’s

Degree in Science Major in Mathematics at Foundation
University, Dumaguete City on March 2010. He has taught
for almost 4 years at Foundation University, teaching
Mathematics to college students (2011-2014). Currently
he is a Teacher 2 at Giligaon High School of Siaton 4
District in the Division of Negros Oriental (2018-present).

30
 DEPARTMENT OF EDUCATION
SCHOOLS DIVISION OF NEGROS ORIENTAL

SENEN PRISCILLO P. PAULIN, CESO V

Schools Division Superintendent

JOELYZA M. ARCILLA, EdD

Assistant Schools Division Superintendent

MARCELO K. PALISPIS, EdD

Assistant Schools Division Superintendent

NILITA L. RAGAY, Ed.D.

OIC - Assistant Schools Division Superintendent
CID Chief

ROSELA R. ABIERA
Education Program Supervisor – (LRMS)

ELISA L. BAGUIO, EdD

Education Program Supervisor – MATHEMATICS

MARICEL S. RASID
Librarian II (LRMDS)

ELMAR L. CABRERA
PDO II (LRMDS)

FLORAMAE T. SIOCO
Writer, Lesson 1

MARK ANTHONY T. LUMAGAS

Writer, Lesson 2

RADHIYA A. ABABON
Lay-out Artist
_________________________________

ALPHA QA TEAM
LITTIE BETH S. BERNADEZ
MERCYDITHA D. ENOLPE
RONALD TOLENTINO
DIDITH T. YAP

BETA QA TEAM
ELIZABETH A. ALAP-AP
EPIFANIA Q. CUEVAS
NIDA BARBARA S. SUASIN
VRENDIE P. SYGACO
MELBA S. TUMARONG
HANNAHLY I. UMALI

ENHANCEMENT TEAM
ANGELICA G. ZAMBRANO
DONNA D. FRANCISCO

DISCLAIMER

The information, activities and assessments used in this material are designed to provide accessible learning modality to the teachers
and learners of the Division of Negros Oriental. The contents of this module are carefully researched, chosen, and evaluated to comply with the
31
set learning competencies. The writers and evaluator were clearly instructed to give credits to information and illustrations used to substantiate this
material. All content is subject to copyright and may not be reproduced in any form without expressed written consent from the division.
 REFERENCES

Cajandab, Nelson C. et al, Our World of Math (Quezon City, Vibal

Publishing House, Inc., 2013), 206-218.

Lopez, Brian Roy C. et.al, Business Math (Quezon City, Vibal Group Inc,
2016), 64-68.

Campeña, F. 2016 Mark-on, Mark-up, Markdown, and Gross Margin, Web

log, 2016. Retrieved from https://francisjosephcampena.weebly.com/

Delgado, M. 2015 Markup, Markdown and Markon, Web log, December

13, 2015. Retrieved from http://michelleraedelgado.blogspot.com/

Mia, R., Manding, M., Paredes, L., Ramos, A., Asinas M., Adrian S., and
Asuncion, J. 2016 Buying and Selling. In Business Mathematics: Teaching
Guide for Senior High School. Quezon City: EC-TEC Commercial.

Simpson, E. 2013 HOSP1107-chapter6b. Vancouver: Vancouver Community

College Learning Center. Retrieved from
https://library.vcc.ca/learningcentre/pdf/

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