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TLE-HE-COOKERY
Quarter 3 – Module 4
Calculating Cost of Production
TLE-HE-COOKERY- 7
Alternative Delivery Mode
Quarter 3 – Module 4: Calculating Cost of Production
First Edition, 2020

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 What I Need to Know

This module was designed and written for the learners. After going through this
module, the learner is expected to:
1. compute the costs of production according to standard procedure.
(TLE_HECK7/8PM-0e-5)

What I Know

Directions: Answer the following questions in your activity notebook by writing the
letter of your answer.

1. Selling price – buying price

A. Markup C. Peso Markup

B. Percentage Markup D. Unit Cost

2. Peso markup ÷ cost

A. Markup C. Peso Markup

B. Percentage Markup D. Unit Cost

3. Peso markup ÷ selling price

A. Markup C. Peso Markup

B. Percentage Markup D. Unit Cost

4. Even though the cost, selling price, and peso markup will always be the same,
the percentage markup will be drastically different depending on if you calculate it
using selling price or cost.

A. False B. True

5. Using selling price will give you a higher percentage while using cost will
give you a higher percentage markup.

A. False B. True

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 Lesson
Calculating Cost of
1 Production
Calculation of all the cost we have for a simple expense is very essential for the
computation of our profit and mark up. In this lesson you are going to learn the different
ways on how to calculate for our cost production, let us start!

What’s In

Directions: Answer the following questions by writing the letter of the correct answer
in your activity notebook.
1. Pound is to lb. and ounce is to _______________.
A. C C. oz
B. g D. pt.
2. 2 ½ cups =_______________ ml
A. 425 ml C. 625 ml
B. 525 ml D. 725 ml
3. 4 lbs. =_________________kg
A. 2 kgs C. 4 kgs
B. 3 kgs D. 5 kgs
4. Lance turn on the oven and calibrate it at 250 – 260 degrees Celsius, this
temperature is considered __________________.
A. hot C. moderate hot
B. moderate D. slow
5. 2 cups is equivalent to how many ml?
A. 125ml C. 250ml
B. 220 ml D. 500ml

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 What’s New

Directions: Read the poem below and write in your activity notebook the different
terms that you are going to encounter in this module.

Calculation of Cost
By Jonalyn O. Calado

Calculation of cost must be computed

Selling cost is also calculated
For the profit to be estimated

Calculation has many benefit

Financial benefit, social benefit
and political benefit

What Is It

CALCULATING MARKUP PERCENTAGE

Markup is the difference between how much an item costs you, and how much
you sell that item to know your profit per item. Any person working in business or retail
will find the skill of being able to calculate markup percentage very valuable.

Instructions

1. Calculate your peso markup. This is done by subtracting your buying price from
your selling price.
Example:

Selling price 15.00

Purchase cost/buying price 10.00
Peso markup 5.00
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2. Decide whether you want to calculate your percentage markup based on cost or
selling price. Once you choose which you will be using to calculate, it is important
to stick to the method you choose throughout all your calculations, or you will end
up with faulty data. If you decide to calculate your percent markup based on cost, go

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on to Step 3. If you decide to calculate your percent markup based on selling price,
move to Step 4.

3. Calculate percent markup based on cost. This is done by dividing the peso markup
by the cost.
Example
Peso markup 5.00
Purchase cost/buying price ÷10.00
Percentage mark up .5 or 50%

4. Calculate your percent markup based on selling price. This is done by dividing the
peso markup by the selling price.
Example
Peso markup 5.00
Selling price ÷15.00
Percentage mark up .33 or 33%

5. Make sure you consistently use either cost of the product or selling price to find the
percent markup on an item. Even though the cost, selling price, and peso markup will
always be the same, the percentage markup will be drastically different depending on
how you calculate it using selling price or cost. Using selling price will give you a lower
percentage markup (assuming you are making a profit), while using cost will give you
a higher percentage markup.

Calculating Markup and Selling Price

1. Peso markup =selling price - purchase price

Example:
Purchase price of an eggs (large) = ₱6.50
Selling price (per price) = ₱ 8.50
Peso mark- up = ₱8.50 – 6₱.50 = ₱2.00
2. Percent markup = peso markup ÷ selling price
₱2.00 ÷ ₱8.50 = 0.235 or 23%
3. Selling Price = total cost + peso mark up
No. of yield
Example:
Total cost of expenses in making salted egg = ₱80.00
Peso mark up (₱ 100.00- ₱80.00 = ₱40.00) = ₱20.00
Selling price = ₱100.00 + ₱20.00 = 8.00
₱10
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 What’s More

A. Directions: Read the following statements then choose the appropriate words that
describe the statements. Write your answer on your activity notebook.
1. ________is done by subtracting your buying price from your selling price.
2. ________is the difference between how much an item cost you, and how much
you sell that item for it's your profit per item.
3. _______is done by dividing the peso markup by the selling price.
4. _____________is obtained by adding the total cost and peso mark up and divide
by number of yields.
5. Using _________ will give you a lower percentage markup (assuming you are
making a profit).

B. Directions: Read the situation below then answer the question using the
appropriate formula. Write your answer on your activity notebook.

Curt and his brother think of a simple recipe that they can sell through online.
They ask the help of their father to do the delivery of their product to their customers.
They make ube graham balls. They sum up all their expenses in buying all their
ingredients; (condensed milk (php85.00), 500 gm graham powder (php80.00), 3 pcs
ube (php30.00), ½ cup sugar (php5.00), boxes (php150.00). They come up with 100
pcs.of balls and they sell it for php10.00 per ball and if it will be packed containing
10pcs, It will cost php120.00 per pack.They were able to sell 6 packs for php720.00
then they sell the 40 pieces of ube graham balls in the community for php400.00.
Compute for the percentage markup based on selling and the peso markup.

C. Directions: Write R if the statement is true and W if is false. Write your answer in
your activity notebook.

1. Percent markup is done by subtracting your buying price from your selling price.
2. Markup is the difference between how much an item cost you, and how much you
sell that item for it's your profit per item.
3. Calculate your peso markup. This is done by adding your buying price from your
selling price.
4. Calculate percent markup based on cost is done by multiplying the peso markup
by the cost.

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5. Calculate your percent markup based on selling price by dividing the peso markup
by the selling price.

What I Have Learned

Directions: Fill in the blanks with the appropriate words to sum up our lesson. Write
your answer on your activity notebook.
The difference between how much an item costs and how much you sell that
item for it's your profit per item is called______. Any person working in business or
retail will find the skill of being able to calculate ___________________ very valuable.
Calculating your ___________________ is done by subtracting your buying price from
your selling price.

What I Can Do

Directions: Given the following recipe and its estimated cost, compute for the total
purchase cost and impose a 50% mark to determine the selling price of your product.
Yield = 30 servings

Selling
Peso mark
Item Unit cost Total cost price per
up
serving
2kgs. pork 260.00/kl
1 head of garlic 5.00/pack
4 Tbsp soy sauce 15/bottle
Appr. 32 T
1 tsp black pepper 2.00/pack
1 tsp=2packs
½ cup vinegar 10.00/bottle
2 cups/bottle
2 Tbsp oil 40.00/bottle
Appr.32T
1 pc onion 7 per piece
1 Tbsp sugar

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 Assessment

Directions: Read the problem below and answer the following questions in your
activity notebook.

Kent buy 10 pieces of medium sized egg for ₱70.00 and ₱ 5.00 salt for them to make
salted egg as their output in their food processing subject. After the grading of their
output their teacher bought their salted egg for ₱140.00.

1. What is the selling price of their salted egg per piece?

2. How much is the peso markup of their salted egg?

3. How much is the percent markup based on the cost of their salted egg?

4. How much is the percent markup based selling price?

5. Did Kent earn from his project?

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What I Know What's More Assessment
1. C A. 1. ₱14.00
2. B
3. C 2. ₱65.00
1. Peso markup
4. B 2. mark 3. 86%
5. A 3. percent markup 4. 46%
4. selling price 5. YES
5. selling price
What’s In
1. C
2. C B.
3. A
4.A
5. D
C.
1. W
2. R
3. W
4. W
5. R
Answer Key
References

Casuga, Gil, Dantes, Reynaldo, Roque, Maria, Giron, Paraluman, Corpuz, Brenda,
Flojo, Ofelia, Adriano, Beatriz, Galura, Aida, Chavez, Dominga Carolina.2016.
K to 12 Basic EducationCurriculum Technology and Livelihood
Education Learning Module - Commercial Cooking, Exploratory Courses
(Grade 7 and Grade 8). Philippines: Department of Education

Department of Education. 2016. K to 12 Curriculum Guide Home Economics - Cookery

Curriculum Guide (Grade 7 t0 12) - Philippines: Accessed May 15, 2020 at
http://lrmds.deped.gov.ph/

Kong, Aniceta and Domo, Anecita.2016. Technical Vocational Livelihood

Education -Cookery Module 1, Quarter 1 Manual. Philippines:
Department of Education

Kong, Aniceta and Domo, Anecita.2016. Technical Vocational Livelihood Education

-Cookery Module 1, Quarter 1 Teacher’s Guide, Philippines: Department
of Education

Curriculum Guide K-12, MELC. 2020. Pasig City: Department of Education