Selling Price

the price at which a product or

service is sold to the buyer.

Cost of Goods Sold

the original price of the merchandise
paid by the retailer

The retailer must add an additional amount to its cost to cover its
business and to provide a profit.
 Markup
the amount added to the
cost price of goods to cover
overhead and profit
 Thus,
Markup
is
Selling
Markup Cost
Price
Sell for:
P 120
Cost of Product:
P 100

Markup P 120.00 P 100.00

• 
If a business marks the price of a
T-shirt bought for 100.00 to sell
at 150.00. How much is the
markup?

P 50.00 P 150.00 P 100.00

 Markup can be expressed
as a percentage of the
cost of a product.

𝑀𝑎𝑟𝑘𝑢𝑝=𝑀𝑎𝑟𝑘𝑢𝑝𝑟𝑎𝑡𝑒×𝐶𝑜𝑠𝑡
 
 
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒=𝐶𝑜𝑠𝑡 + 𝑀𝑎𝑟𝑘𝑢𝑝
 
𝑀𝑎𝑟𝑘𝑢𝑝=𝑀𝑎𝑟𝑘𝑢𝑝 𝑟𝑎𝑡𝑒 ×𝐶𝑜𝑠𝑡
 
𝑀𝑎𝑟𝑘𝑢𝑝
𝑀𝑎𝑟𝑘𝑢𝑝 𝑟𝑎𝑡𝑒=
𝑐𝑜𝑠𝑡
• 
A dealer bought 15 crates of bananas at
11, 250.00. if the dealer imposed a 40%
markup based on the cost, find the:
1.Cost per crate of the bananas; and
2.Amount of markup per crate of
bananas.
 Solution 1:
• 

Solution 2:
Since 𝑀𝑎𝑟𝑘𝑢𝑝=𝑀𝑎𝑟𝑘𝑢𝑝 𝑟𝑎𝑡𝑒 ×𝐶𝑜𝑠𝑡
 

 
𝑀𝑎𝑟𝑘𝑢𝑝= 0.40× ₱ 750.00
 
𝑀𝑎𝑟𝑘𝑢𝑝=₱ 300.00
• 
A shop sells a laptop computer
at 20,000.00. If each computer
costs 16,500.00, what is the
markup rate?
 Solution:
• 
 Solution:
Since
 
𝑀𝑎𝑟𝑘𝑢𝑝= 𝑀𝑎𝑟𝑘𝑢𝑝 𝑟𝑎𝑡𝑒 × 𝐶𝑜𝑠𝑡
 Markup based on the selling price is called margin.
Margin
• the difference between selling price and the
cost of goods sold.
 
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒=𝐶𝑜𝑠𝑡 + 𝑀𝑎𝑟𝑔𝑖𝑛
 
𝑀𝑎𝑟𝑔𝑖𝑛= 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 − 𝐶𝑜𝑠𝑡
• It is obtained by multiplying the selling price by the
percentage margin.
 
𝑀𝑎𝑟𝑔𝑖𝑛= 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛 × 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
 
𝑀𝑎𝑟𝑔𝑖𝑛
𝑃 𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛=
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒=𝐶𝑜𝑠𝑡 +𝑀𝑎𝑟𝑔𝑖𝑛
 

𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒=𝐶𝑜𝑠𝑡 + ( 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛 × 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 )

 

𝐶𝑜𝑠𝑡 =𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 − ( 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛 × 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 )

 

 
𝐶𝑜𝑠𝑡 =𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 ×(1 − 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛 )
  𝐶𝑜𝑠𝑡 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 ×(1 − 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛)
=
(1− 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛) (1− 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛)
 
𝐶𝑜𝑠𝑡
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒=
1 − 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛
A home appliance retailer bought ten electric
fans at ₱ 1, 050.00 each. He sold each unit
with a 25% markup based on the selling price.
Find the:
1.Selling price for each electric fan, and
2.Margin per electric fan
  𝐶𝑜𝑠𝑡
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒=
1 − 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛
  ₱ 1,050.00
¿
1 − 0.25
 

𝑀𝑎𝑟𝑔𝑖𝑛=𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 −𝐶𝑜𝑠𝑡

 

 
• 
A gift shop buys wallets for 300.00 and
sells them for 350.00. Find the

1.Percentage margin, and

2.Markup rate
 

𝑀𝑎𝑟𝑔𝑖𝑛=𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛 × 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒

 

  𝑀𝑎𝑟𝑔𝑖𝑛
𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛=
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
  ₱ 50.00
¿  
¿ 0.1428 𝑜𝑟 14.28 %
₱ 350.00
 𝑀𝑎𝑟𝑘𝑢𝑝=𝑀𝑎𝑟𝑘𝑢𝑝 𝑟𝑎𝑡𝑒×𝐶𝑜𝑠𝑡
 

  𝑀𝑎𝑟𝑘𝑢𝑝
𝑀𝑎𝑟𝑘𝑢𝑝 𝑟𝑎𝑡𝑒=
𝐶𝑜𝑠𝑡
  ₱ 50.00
¿
₱ 300.00  
 
¿ 0.1667 𝑜𝑟 16.67 %
   𝐹𝑂𝑅𝑀𝑈𝐿𝐴𝑆

  𝑀𝑎𝑟𝑘𝑢𝑝 𝐹𝑜𝑟𝑚𝑢𝑙𝑎𝑠
 
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒=𝐶𝑜𝑠𝑡 + 𝑀𝑎𝑟𝑘𝑢𝑝
𝑀𝑎𝑟𝑘𝑢𝑝=𝑀𝑎𝑟𝑘𝑢𝑝 𝑟𝑎𝑡𝑒 ×𝐶𝑜𝑠𝑡
 

 
𝑀𝑎𝑟𝑘𝑢𝑝
𝑀𝑎𝑟𝑘𝑢𝑝 𝑟𝑎𝑡𝑒=
𝑐𝑜𝑠𝑡
  𝑀𝑎𝑟 𝑔𝑖𝑛 𝐹𝑜𝑟𝑚𝑢𝑙𝑎𝑠
 
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒=𝐶𝑜𝑠𝑡 + 𝑀𝑎𝑟𝑔𝑖𝑛
  𝑀𝑎𝑟𝑔𝑖𝑛
𝑃 𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛=
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
 
𝐶𝑜𝑠𝑡
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒=
1 − 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛
• 

A trading firm sells a laptop computer

at 25,550.00. If each unit originally
costs 19,300.00, compute the
markup, the markup rate, and the
percentage margin.
Sheila bought a pair of rubber shoes
costing ₱2,210.00 which she sells
₱3,845.40. Compute the margin and
percentage margin per item.
 Why do
businesses put
items on sale?
Markdown is a amount
deducted on the selling
price
 Original Selling
Price
The price at which the item is actually sold.

Reduced Price
The discounted price of an item from the regular
selling price.
Markdown Rate
A percent of the original price
 Why do businesses put markdown?
• To attract costumers to buy more products
• To make the price appealing
• To get rid of slow-moving merchandise
• To increased sales
• To meet the competitor’s prices
 How to compute for the markdown?
Equation 1:
  𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛=𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 − 𝑅𝑒𝑑𝑢𝑐𝑒𝑑 𝑃𝑟𝑖𝑐𝑒
Equation 2:
  𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛=𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒 × 𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
Equation 3:
  𝑅𝑒𝑑𝑢𝑐𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 =𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 ×(1 − 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒)
• 
A light-emitting diode (LED) lamp regularly
priced at 1,948.00 is on sale for 1,499.00.
Compute the

1.markdown; and
2.Markdown rate.
 
𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛=𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 − 𝑅𝑒𝑑𝑢𝑐𝑒𝑑 𝑃𝑟𝑖𝑐𝑒
 
¿ ₱1,948.00 − ₱1,499.00
 
¿ ₱ 449.00
𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛=𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒 × 𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
 

  𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛
𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒=
𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
 
₱449.00  
¿ ¿ 0.2305 𝑜𝑟 23.05 %
₱1,948.00
During the clearance sake of a furniture shop,
dining set originally priced at ₱ 42,000 was
sold at a 40% markdown. What is the reduced
price?
  𝑅𝑒𝑑𝑢𝑐𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 =𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 ×(1 − 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒)
 
¿ ₱ 42,000 × (1 − 0.40 )
 
¿ ₱ 25 , 200.00
A fish vendor bought 100 kilograms of bangus
at ₱66.00 per kilogram. He originally set the
selling price to obtain a 40% margin. however.,
to ensure that all will be sold, he gave a 15%
markdown. Determine the
1. Selling Price;
2. Reduced Price; and
3. Amount of markdown per kilogram.
   𝐶𝑜𝑠𝑡
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒=
1 − 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛
 
₱ 66.00
¿
1− 0.40
 
¿ ₱ 110.00
To compute the reduced price, we have
  𝑅𝑒𝑑𝑢𝑐𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 =𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 ×(1 − 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒)
  ¿ ₱ 110.00 × (1− 0.15)
 
¿ ₱ 93.50
 
𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛=𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 − 𝑅𝑒𝑑𝑢𝑐𝑒𝑑 𝑃𝑟𝑖𝑐𝑒
¿ ₱1 10 .00− ₱ 93.50
 

 
¿ ₱ 16.50
What are the markdown and the
reduced price on an antique jar that
has a regular price of ₱ 35,800 and is
on sale for 26% off the regular price?
A LED TV which was marked down at
20% is on sale for ₱70, 265.00 Find
the regular price.
Sofia has some shirts in her boutique
that have not sold. She decides to
mark them down from ₱850 to
₱552.50, what percentage did she
mark them down?