Learning Area Grade Level 11

W7
BUSINESS MATHEMATICS
Quarter Third (3rd) Quarter Date

I. LESSON TITLE Profit and Loss

II. MOST ESSENTIAL LEARNING The learners
COMPETENCIES (MELCs) ● differentiate profit from loss (ABM_BM11BS-Ii-6)
● illustrate how profit is obtained and how to avoid loss in a given
transaction (ABM_BM11BS-Ii-7)
III. CONTENT/CORE CONTENT Profit and Loss
References: Business Mathematics Textbook, pages 92-95
Teaching Guide for Business Mathematics pages 69-74
Suggested
IV. LEARNING PHASES Learning Activities
Timeframe
A. Introduction 10 minutes Day 1
Panimula
Good day learners! Now that you know about mark-up, markdown, mark-on,
and gross margin, let us study profit and loss.

After going through this lesson, you are expected to:

1. differentiate profit from a loss;
2. solve for the profit; and
3. determine if profit or loss is achieved in a given transaction.

Read and answer the problem below.

A group of ABM students was tasked to sell cookies during a business

simulation. They sold 20 packs of cookies for Php 60 each pack. The cost of
each pack is Php 45.
1. How much are the total sales of cookies?
2. How much profit did they get for one pack?
3. How much is their total profit?
4. Suppose they only sold 10 packs, did they gain profit or incurred loss?

B. Development 120 Most businesses’ goal is to gain profit. Although sometimes due to unforeseen
Pagpapaunlad minutes circumstances and events (e.g. typhoon, wrong business decision) the
business incurred losses. Before solving the problem above, let us look at the
following definition:

Selling price is the amount the product is being sold or service rendered.
Sales is the total product sold or service rendered for a given period (e.g.,
daily, weekly, monthly, annually). It can be illustrated in quantity or in peso.
Cost is the amount paid by the business for the good or service it is going to
sell.
Profit is what remains of the selling price or sales after deducting all the costs
and expenses of the good or service. It is represented in peso terms.
Loss occurred when the sales are less than the cost of goods or services.

To get the sales, multiply the number of products sold by the selling price.
Sales = No. of product sold x selling price

To get the profit, simply deduct the cost from the selling price, as shown
below.
Profit/loss = sales – cost
There are instances when the sales are less than the cost, this is when the
business incurred loss. The same formula as profit applies but with a negative
outcome.

Determining the profit or loss involves simple fundamental operations in

Mathematics. Let us get back and solve the problem above.
 Example 1. A group of ABM students was tasked to sell cookies during a
business simulation. They sold 20 packs of cookies for Php 60 each pack. The
cost of each pack is Php 45.

1. How much are the total sales of cookies?

Solution:
Sales = no. of cookies sold x selling price
Sales = 20 packs x Php 60/pack
Sales = Php 1,200
The total sales of 20 packs of cookies is Php 1,200.

2. How much profit did they get for one pack?

Solution:
Profit = selling price – cost
Profit = Php 60 – Php 45
Profit = Php 15
For every pack of cookies sold, they have a profit of Php 15.

3. How much is their total profit?

Solution:
Total Profit = profit x no. of packs sold
Profit = Php 15 x 20 packs
Profit = Php 300
The total profit for 20 packs of cookies is Php 300.

4. Suppose they only sold 10 packs, did they gain profit or incurred loss?
Solution:
Sales = 10 packs of cookies x Php 60
Sales = Php 600
Cost = Php 900
Loss = sales – cost
Loss = Php 600 - Php 900
Loss = (Php 300)
As computed, the cost of cookies is greater than its sales, therefore,
there is a loss of Php 300 for selling 10 packs of cookies. In order to gain
profit, you need to sell 16 packs or more.

Day 2
To further understand the concept of profit and loss, read concepts and
sample problems on your Business Mathematics textbook by Lopez pages 92-
94.

C. Engagement 40 minutes The following activities will help you practice your learnings of the topic
Pakikipagpalihan discussed.

Activity 1.
To enhance your skills in determining if profit or loss is achieved in a given
transaction, answer Exercises A on your Business Mathematics textbook by
Lopez, page 95.

D. Assimilation 20 minutes Day 3

Paglalapat Activity 2. What Have You Learned?
1. Differentiate profit from loss.
2. Cite situations where businesses gain profit or incur a loss.

Activity 3.
Think of a product that you can sell. Illustrate by filling-up the table below.
Show your computation.
Product _____________

Selling Price
 Cost
Target weekly sales
Target weekly profit

V. ASSESSMENT 20 minutes Day 4

(Learning Activity Sheets for To further check your understanding, answer the problems below.
Enrichment, Remediation or
Assessment to be given on Weeks
1. Maribel bought a bag for Php 1,000. Given the following situation, (1)
3 and 6) determine whether she earns a profit or incurs a loss (2) determine
how much was her profit or loss.
a. Maribel sold the bag to her friend for Php 1,100.
b. Maribel’s sister likes the bag and gives her Php 500 for it.
2. A laptop was sold for Php 29,000. What is the cost of the laptop if the
profit is 25%?
3. A jeweler sells a pair of 18-karat earrings at Php 5,500. She decided
to offer a 5% discount for a week. The weekly average sales of
earrings increased from 15 to 28 pairs. How much was the weekly
profit increased or decreased by offering a discount if the cost of a
pair of earrings is Php 4,800?
VI. REFLECTION 10 minutes ● The learner, in their notebook, will write their insights about the lesson
using the prompts below.
I understand that ___________________.
I realize that ________________________.
I need to learn more about __________.

Prepared by: Irish G. Cotejar , SDO Imus City Checked by: Dr. Josephine P. Canlas, Adora G. del Mundo
Jeramie G. Buensuceso