Perform

Mensuration
and
Calculation
Table of Contents

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3 Words 4
 Objectives
After completing this module, the students should be able to:
1. discuss principles of costing;
2. compute cost of production; and
3. appreciate the importance of computed
cost of production.
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WORD HUNT Directions: Look for words from the given crossword which is related to the lesson.
UNLOCKIN
G OF
WORDS
 COST

estimate the price

of
 purchase

acquire (something)
by paying for it; buy.
selling

give or hand over

(something) in
exchange for
money
Calculate Cost of Production

How to Calculate Markup Percentage

Markup is the difference between how
much an item costs you, and how much you
sell that item for.
Steps:
1. Calculate peso markup. Subtract the buying
price from the given selling price.

Example:
Selling price 25.00
Purchase cost/buying price - 20.00
Peso markup 5.00
2. Calculate percent markup based on cost.
Divide the peso mark up by the cost.

Example:
Peso markup 5.00
Purchase cost/buying price ÷20.00 Percentage
mark up 0.25 or 25%
3. Calculate percent markup based on
selling price. Divide the peso markup by
the selling price.

Example:
Peso markup 5.00
Selling price ÷25.00
Percentage mark up 0.2 or 20%
 Mark up is the difference
REMEMBER between how much an item
costs you, and how much
you sell that item for.

Purchasing is buying or
acquiring of an item,
services or goods.