Business Mathematics

Quarter 1 – Module 7:
Profit and Loss
Business Mathematics
Alternative Delivery Mode
Quarter 1 – Module 3: Kinds of Proportion
First Edition, 2020

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Business Mathematics
Quarter 1 – Module 7:
Profit and Loss
Introductory Message
For the facilitator:

Welcome to the 11-Business Mathematics Alternative Delivery Mode (ADM) Module

on Profit and Loss.

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:

“Failure will never overtake me if

my determination to succeed is
strong enough.”
– Og Mandino

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.

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For the learner:

Welcome to the Mathematics 11 Alternative Delivery Mode (ADM) Module on Profit

and Loss.

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 Know This will give you an idea of the skills or
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 Answer
Key at the end of the module.

What I Have Learned This includes questions or blank

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

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 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 Activities In this portion, another activity will be 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.
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!

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 What I Need to Know

This module was designed and written with you in mind. It is here to help you
master on how important this lesson in our daily lives. 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. Differentiate profit and loss;
2. Enumerate the different terms and formulas;
3. Illustrate how profit is obtained and how to avoid loss in a given transaction.
4. Interpret the value of profit and loss, to signify its importance in buying and
selling situations; and
5. Solve business-related problems involving profit and loss
 What I Know

Directions: Read the problem carefully & choose the letter of the correct answer.

1. Mam leen bought a camera and paid 20% less than its original price. She
sold it at 40% on the price he had paid. The percentage of profit earned by
Mam leen on the original price was ____?
a. 32% c. 15%
b. 22% d. 12%

2. A friend of Joey buys an article for P27.00 and sells it at a profit of 10% of
the selling price. The selling price of the article is:
a. P29.70 c. P32.00
b. P30.00 d. P37.00

3. Jack bought a pairs of shirt for P 125.00 and sold them for P 108.00. Find
his loss or gain percent.
a. 13.2% c. 14.2%
b. 13.6% d. 14.6%

4. Mr. Ferdinand bought a TV for P 5500.00 and sold it for P 7000.00. Find his
profit or loss.
a. P2500.00 c. P1500.00
b. P2000.00 d. P1000.00

5. Mr. Smith bought a book for P 85.00 and sold it for sold it for P 115.00. Find
his profit or loss percent.
a. 35.29% c.
b. 35.36% d. f

For 6-15
Directions: Fill in the blanks.

Cost Price Selling Price Profit/(Loss)

P2,400.00 6. P400.00
7. P1,900.00 (P300.00)
P12,000.00 P10,000.00 8.
P22,500.00 9. (P2000.00)
10. P3200.00 P590.00
P8430.00 11. (P349.00)
P15,750.00 P13,320.00 12.
13. P4,550.00 P230.00
P2,920.00 14. P320.00
P28,540.00 P35,500.00 15.
 Lesson

1 Profit and Loss

This lesson introduces students to profit and loss. They will learn to differentiate
profit from loss, recognize the different terms and ways on how to find the profit and loss of a
certain given problem and apply these in real life situations. By the time they complete the
lesson, they will be able to define the different terms, write the formulas, solve the given
problems and differentiate profit and loss. At the end of the lesson, they will be able to use or
apply the concept of profit and loss in relation to different business related problems that
involves buying & selling.

What’s In

A. Directions: Solve each problem.

1. What is mark-up if the old selling price Php 150.00 is increased by 10%?
_____________________.
2. How much is the cost of an item if the retail price Php 89.00 is the 15%
increased value of the cost? _______________________.
3. What is the mark-down if the selling price of Php 76.00 is the 20% decreased
value of the cost? _____________________.
4. The retail price is the 9% decreased value of the old retail price of Php 550.00.
How much is the mark-down? ______________________.
5. The mark-up of a commodity is the 12% of Php 440.00 cost. How much is the
retail price? _______________________.
6. What is the mark-up set by a seller if he/she bought a piece of book at Php
450.00 and sold it at Php 530.00? ______________________.
7. How much is the selling price of a commodity if its cost of Php 345.25 is
increased by the half of Php 170.00? ______________________.
8. If the cost of an item is Php 45.00, how much is its mark-up if the cost is
increased by 50%? ___________________________.
9. If the new selling price of an item is Php 120.00 and its mark-down is 40% of
the new selling price, how much is the old selling price?
___________________________.
10. What is the selling price of a product if the mark-up is 35% of the cost price of
Php 320.00? ________________________.
What’s New

Maria has a family; she has 5 children & her husband is

working as a construction worker. Two

of her children are in college level

already, she is facing a financial crisis at

P6,500.00

that moment aside from that we are also

facing a pandemic. That’s why she tried

her best to do things that might help her

financially. She decided to try the online

selling, since they have an internet connection & don’t need to go

outside in selling her products.

She has a bag that is worth P5,000.00 brand-new and

she just bought it last month, it’s a gift for herself.

Maria is planning to sell it in the amount of P6,500.00.

Since, it is just for a month that she bought it & it is still new that’s

why she decided it for that amount. What do you think? Is he going to

have a profit or a loss?

 What is It

Profit or Gain it is when the selling price is more than the cost price. The difference
between them is profit incurred.

Formula: Profit or Gain = Selling Price (S.P) – Cost Price (C.P.)

Example: An article is purchased for P450.00 and sold for P500.00.

Find the gain Profit.
Solution:
C.P.= P450.00 S.P.=P500.00
Profit = S.P – C.P
= P500.00 – P450.00
P= P50.00
Hence, an article gains a profit of P50.00.

Loss it is when the selling price is less than the cost price. The difference between
them is loss incurred.

Formula: Loss = Cost Price (C.P.) – Selling Price (S.P)

Example: An article is purchased for P850.00 and sold for P600.00.

Find the profit or loss?
Solution:
C.P.= P850.00 S.P.=P600.00
Loss = C.P – S.P
= P850.00 – P600.00
L= P200.00
Hence, an article loss of P200.00. In order to avoid loss, the selling price
must be greater than the cost price.

Cost Price it is the price at which an article is bought or purchased (C.P.).

Formula: Cost Price (C.P.) = Selling Price (S.P) – Profit or
Selling Price + Loss

Example: Ana sold a Samsung tablet for P15,000 at a profit of P2,300.00.

Find the price at which she bought it.
Solution:
S.P.= P15,000.00 P=P2,300.00
C.P = S.P – P
= P15,000.00 – P2,300.00
= P12,700.00
Selling Price it is the price at which an article is sold (S.P.)
Formula: Selling Price (S.P) = Cost Price (C.P.) + Profit or
Cost Price (C.P.) – Loss

Example: Oscar has a shoes worth of P3,000 and he wants to sell it at a profit
of P1,000.00. What should shoes selling price be?
Solution:
C.P.= P3,000.00 P=P1,000.00
S.P = C.P + P
= P3,000.00 + P1,000.00
= P4,000.00

If Profit/Loss percent (%) is required to find then,

Formula: Profit % = (Profit/Cost Price) x 100
Loss % = (Loss/ Cost Price) x 100

Example: An article is purchased for P450.00 and sold for P500.00.

Find the its profit or loss percent?
Solution:
C.P.= P450.00 S.P.=P500.00
Profit = S.P – C.P
= P500.00 – P450.00
P= P50.00

Profit % = (Profit/Cost Price) x 100

= (50/450) x100
=11.11%

Example: An article is purchased for P850.00 and sold for P600.00.

Find the profit or loss percent?
Solution:
C.P.= P850.00 S.P.=P600.00
Loss = C.P – S.P
= P850.00 – P600.00
L= P200.00

Loss % = (Loss/ Cost Price) x 100

= (200/850) x 100
=23.53%

Remember me!
When the selling price is equal to the cost price,
then there is neither profit nor loss.
 What’s More

I: Complete the table below. @2pts

Cost Price Selling Price Profit/(Loss) Profit/Loss %

P4,500.00 P490.00

P4,100.00 P300.00

P1,590.00 (P60.00)

P1,200.00 (P180.00)

P13,450.00 P1,950.00

II: Try this

Directions: Read the given problem, show your solutions and box your final
answer. @5pts

1. Uncle Eugene bought a music system for P6,375.00 and spent P75.00 on its
transportation He sold it for P 6900.00. Find his profit or loss percent.

Solutions

2.  Sophia bought pens at P120.00 a dozen. She sold it for P15.00 each. What is his
profit percent?

Solutions
3. Sunshine bought a study table for P9000.00. She sold it at a profit of 20%. How
much profit did she make? What is the selling price?

Solutions

4. John bought a second hand cycle for P1200.00. He spent P300.00 in repairs and P
175 in repainting. He then sold it to Michael for P3,000.00. How much did he gain
or lose?

Solutions

5. Alexander bought 2 tray of eggs (1 tray-30pcs) for P480.00. Since 6 of them

broke, he incurred a loss of P48.00 on selling them. What was the selling price of
one egg?

Solutions
 What I Have Learned

 Profit or Gain it is when the selling price is more than the cost price. The
difference between them is profit incurred.
 Loss it is when the selling price is less than the cost price. The difference
between them is loss incurred.
 Cost Price it is the price at which an article is bought or purchased (C.P.).
 Selling Price, it is the price at which an article is sold (S.P.)

Formulas:

 Profit or Gain = Selling Price (S.P) – Cost Price (C.P.)

 Loss = Cost Price (C.P.) – Selling Price (S.P)
 Cost Price (C.P.) = Selling Price (S.P) – Profit or Selling Price + Loss
 Selling Price (S.P) = Cost Price (C.P.) + Profit or Cost Price (C.P.) – Loss

If Profit/Loss percent (%) is required to find then,

 Profit % = (Profit/Cost Price) x 100
 Loss % = (Loss/ Cost Price) x 100
Remember:
When the selling price is equal to the cost price, then there is neither
profit nor loss.

1. In your own way of presentation, how will you differentiate profit and loss?
Give your own example.
2. If you were a businessman and planning to have a business someday, what would
it be and why?

3. What is the significance of studying profit and loss? In what aspects of your life,
wherein you can apply profit and loss?
 What I Can Do

Business Related Problems

Directions: Read the problem carefully, show your solutions, box the final answer & give
your own interpretation on your answer.
1. Andy purchased 120 pencils at the rate of P2.00 per pencil. He sold 72 of them at the
rate of P2.50 per pencil and the remaining at the rate of P2.00 per pencil. Find his
profit or loss per cent.

2. Mike sold two horses for P18,000.00 each. On one he gained 20% and on the other he
lost 20%. Find his total gain or loss.

3. A television set was bought for P3,900.00. P200.00 was spent on transportation and
P900.00 on repair. It was sold at a loss of 10%. Find the Selling Price of television.
4. A bed sheet was sold for P48.00 thereby gaining 15%. Find the Cost Price of the bed
sheet.

5. Aaron bought an almirah for P1520.00 and sold it at a profit of 12 %. Find the selling
price of the almirah.

6. By selling a camera for P2400.00, Ron loses 4%. At what price must he sell it to gain
12 %.
 Assessment
A. Find gain or loss percent when: 
Cost Price Selling Price Gain/Loss Percent
P350.00 P400.00 1.
P250.00 P235.00 2.
P300.00 P75.00 3.
B.  Fi P720.00 P63.00 4.
nd P1,518.00 P132.00 5.

Selling Price Loss/Gain Percent Cost Price

P795.00 6% 1.
P980.00 12% 2.
P1,200.00 15% 3.
P2640.00 P196.00 4.
P216.00 4% 5.
cost price when: 

C.  Find selling price when:

Cost Price Loss/Gain Percent Selling Price
P875.00 6% 1.
P650.00 15% 2.
P450.00 12% 3.
P275.00 90% 4.
P1,200.00 P109.00 5.

D. Determine whether the following statements shows a profit or loss situation.

Write P for profit and L for loss.

_____ 1. Bryan bought a pen at P10.00 each and sold it for P12.00.
_____ 2. Nina bought a scientific calculator at P2,200.00. When a new and upgraded
model was released after two months, she sells her scientific calculator for P1,600.00
to buy a new one.
_____ 3. A taho vendor gains P150.00 for selling it at P15.00 per cup.
_____ 4. The cost of 15 pieces personalized coin purse is P1,150.00 and it was sold
for P100.00
 _____ 5. Edward bought a 32 gb memory card at P800.00 and decided to sell it to his
sister for P1000.00.

E. Solve each of the following problems. Show your solutions, avoid erasures and
give a short interpretation about your answers.
1. Emmanuel bought a laptop for P25,000.00 and spent P2,000.00 on its spares.
He later sold it for P29,000.00. How much is Emmanuel’s profit or loss?

2. Grace sold a watch to her friend at a loss of 5%. If her friend paid P850.00 for
it, find the cost price of the watch.

3. Find the profit or loss as percent; when a car is bought for P1,200,000.00 is
sold for P950,000.00.

4. A dealer losses P6,000.00 when he sells a meat at a loss of 10%. How much is
the selling price of the meat?

5. Jonathan bought 18 chairs at P300.00 per chair. He sold 12 of them at P450.00

per chair and the remaining chairs at P280 per chair. Calculate his gain or loss
percent.
 Additional Activities

1. Interview a friend or someone who is an online seller and answer the

following questions below:

a. Get to know her/him;

Name (optional): ______________________________

Age: _________

Months/Years in Online Selling: __________________

Line of Products: _______________

b. How did she/he start the Online selling?

c. What are the challenges that she/he encountered?

d. Did she/he experience loss while doing an online selling?

e. Any word of encouragement that she/he can give for those who are

planning to enter the online selling world.

References

L. Lundag, B. Lopez, K. Dagal. (2016). Business Mathematics.1253 G.

Araneta Avenue, Quezon City: Vibal Group Incorporation.
https://www.math-only-math.com

https://www.khanacademy.org

https://www.mbacrystalball.com
https://www.mathstips.com
https://www.investopedia.com

https://www.letsplaymaths.com

https://educationwithfun.com
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