Learning Area Grade Level 11

W6
BUSINESS MATHEMATICS
Quarter Third (3rd) Quarter Date

I. LESSON TITLE
II. MOST ESSENTIAL LEARNING
COMPETENCIES (MELCs)
Computation of Gross Margin, Trade Discount, and Trade Discount Series
The learners:
● differentiate mark-up from margins,
ABM_BM11BS-Ih-3
● describe how gross margins are used in sales, and
● compute single trade discounts and discount series.
ABM_BM11BS-Ih-4

III. CONTENT/CORE CONTENT Key Concepts in Buying and Selling

Reference: Business Math textbook by Lopez
Suggested
IV. LEARNING PHASES Learning Activities
Timeframe
A. Introduction 10 minutes DAY 1
Panimula Good day, welcome to our lesson.
This week you are expected to:
1. compute the gross margin of given commodities or services based
on stated conditions;
2. determine the new cost of a product after giving series of discounts;
3. compute for the equivalent single discount rate of discount series;
and
4. compare the savings from a single discount rate and savings from a
discount series.

Hello learner, now, your skills and knowledge in the basic concept of buying
and selling lead you to a deeper understanding of how businesses dealt
with their day-to-day transactions.

There are different types of business, a business that offers services classified
as a service type of business and the one that buys and sells goods is a
merchandise type of business.

Let us recall the concept of mark-up as used in the business. Mark-up is the
amount added to the cost to compute for the selling price. In the
merchandise type of business, there is a term called Cost of goods sold.

Do you have an idea about the cost of goods sold?

Let's say, you want to earn money to augment the income of your family.
You decided to engage in buying and selling face masks because you
knew that wearing a face mask is a must.

Activity 1
In your notebook, write all the expenses that may incur in selling face masks.
B. Development 110 Below is an example of the list of expenses in selling face masks. You may
Pagpapaunlad minutes check your work.
1. Face masks
2. Packaging
3. Transportation expense
4. Delivery fee
5. Rent of space

Illustrative problem:
If you have 100 pcs of face masks for sale with a unit cost of ₱12.00 and a
packaging cost of ₱1.00 per piece, how much would be your profit if 80 pcs
of facemask were sold? A delivery expense of ₱42.00 will be added to the
cost of buying the face masks.
 First, you have to determine the selling price
From our previous lesson, the selling price is computed by adding the cost
and the mark-up. The selling price of each face mask is shown below.
Mark- up= 30% based on cost
Selling price = Cost + mark-up
=( ₱12+ ₱1+₱0.525) + (₱12 + ₱1+₱0.5251) x 30%)
= ₱13.525 + 4.0575
= ₱17.5825

The second step is to determine the total sales and expenses incurred directly
related to the purchase of face masks. In our example, packaging cost and
the delivery of face masks is the direct expense incurred in the sales of face
masks.
Finally,
Sales (₱17.5825 x 80 pcs) ₱1,406.60
Less: Cost of goods sold
Cost of face mask per piece (₱12.00 x 80 pcs) ₱960.00
Delivery Cost 42.00
Packaging cost ( ₱1 x 80) 80.00 1,082.00
Gross margin or Gross profit ₱ 324.60

Therefore, the gross profit of selling 80 pieces of face masks is ₱324.60.

Note: Others used gross margin and mark-up interchangeably but they are
different as illustrated above.

Competition in business is common. In your neighborhood how many sari-sari

stores are there? In the mall, how many brands of shirts are there to choose
from?

When a particular brand of shirts is no longer saleable or to be promoted,

business owners tend to offer discounts.

Activity 2
In your notebook write reasons why business owners are granting discounts to
their customers or clients.

Reading for meaning:

To deepen your knowledge on granting discounts, read the lessons Discount
Series on pages 84-88 of your textbook.

C. Engagement 60 minutes From what you have read, do the activities below. Write your answer in your
Pakikipagpalihan notebook.

Activity 3
My Journal of Learnings
Write the definition of the following terms:
1. Trade
2. Original price
3. Discount rates
4. Single discount rates
5. Discount series
6. Net price

Activity 4
My Creative Discussions
1. On page 85 of your textbook, state the reason why 75% is a complement
of 25% and 85% is a complement of 15%.
2. What is the relation of the word series in a discount?

Activity 5
 My Critical Thinking Challenge
Answer the following questions.
On page 86 EXample 3.3.1 in your textbook, between the single discount and
discount series which one offers a lesser selling price? What was done in the
discount series to convert it into a single discount? You can compute the
savings by comparing the selling price using the single discount and the
equivalent one-time discount rate for the series of discounts.

Things to ponder
Skills in computing trade discounts will help business owners decide in availing
the best offer.
D. Assimilation 30 minutes DAY 2
Paglalapat Hi there, I hope you are continuously learning with our lessons.

The concept of single discount and discount series is often used to help the
retailer increase their profit. More often it is used to encourage a huge sale.
Below is the diagram of the flow of the merchandise for sale. In this
diagram, each entity is called a trader. It is the reason why the reduced
amount to pay by the buyer is called a trade discount.

There is no standard rate of discount that can be given to a supplier. The

discount rate varies in multiple factors.

For a discount series given below:

Discount series: 25/15/5
Business owner’s perspective on the grant of discounts maybe
attributed below:
25% - can be a promotional campaign
15% - if the client will buy a certain number, let say
the customer buys 100 pcs instead of 75 pieces
5% - if the buyer will pay within 20 days
Activity 6
To hone your mathematical skills in computing trade discounts and discount
series you are tasked to solve problems numbers 1 to 4 on page 89 of your
textbook.

V. ASSESSMENT 20 minutes Check what you have learned.

(Learning Activity Sheets for Answer number 5 on page 89 and numbers 15, 16, and 20 on page 91 of the
Enrichment, Remediation or
Assessment to be given on Weeks
Business Math textbook by Lopez. Write your answer in your notebook.
3 and 6)
VI. REFLECTION 10 minutes In your notebook, write your insights about the lesson using the prompts
below.
I understand that ___________________.
I realize that ________________________.
I need to learn more about __________.

Prepared by: Eva C. Topacio, SDO Imus City Checked by: Dr. Josephine P. Canlas, Adora G. Del Mundo,
Jeramie G. Buensuceso