Give the substitute of the given ingredients below.

1. 2 cups nuts
2. ½ butter
3. 1 ½ cups brown sugar
4. 3 cups milk
1.What is he going to sell?

2. Do you think many people will buy his

product? Why?
Calculate Cost of
Production
At the end of the lesson, the learners are
expected to:

a. Compute percentage mark-up

Cost - is commonly defined as
“sacrificed resources” for a
particular thing. It is anything that
can be measured in terms of money.
Costing - is a process of
determining the cost. It is the
technique for ascertaining the cost
of production of any product or
service in the business organization.
Cost of Production - refers to the
total sum of money needed for the
production of a particular quantity
of output.
 How to Calculate Mark-up Percentage

Mark-up is the difference between how much an

item costs you, and how much you sell that item for--
it's your profit per item. Any person working in
business or retail will find the skill of being able to
calculate mark-up percentage very valuable.
Instructions:
1. Peso Mark-up is computed by subtracting your
buying price from your selling price.
Example:
Selling price ---------------------------- 15.00
Purchase cost/buying price --------- - 10.00
Peso mark-up ------------------------- = 5.00
2. Percentage Mark-up can be
computed in two ways:
- based on buying price or
- based on selling price.
2. Percentage Mark-up
Based on buying price
or purchase cost: Divide the Peso Mark-up value with the buying price.
Example:
Peso mark-up 5.00
Buying price ÷ 10.00
Percentage mark-up = .5 or 50%

Based on selling This is done by dividing the peso mark-up by the

price: selling price.
Example:
Peso mark-up 5.00
Selling price ÷ 15.00
Percentage mark-up = .33 or 33%
 Using selling price will give you a lower percentage
mark-up (assuming you are making a profit), while using
cost will give you a higher percentage mark-up.
GROUP ACTIVITY

Trishia bought salted eggs for P7.00 per piece. She decided to sell for
P13.00 each.
1. Peso Mark-up: __________(1 pt.)
2. Percentage Mark-up based on buying cost: _______(1 pt.)
3. Percentage Mark-up based on selling price: _______ (1 pt.)
4. Solution: (2 pts.)
Activity 1
Directions: Find the missing value. Write your answer on the space
provided. You must show your solutions below the item.
1. Jay-Ar is selling fish at 120.00 per kilo. He bought the fishes
directly from the fisherman at 100.00 per kilo.
Peso Mark-up: __________(1 pt.)
Percentage Mark-up based on buying cost: _______(1 pt.)
Percentage Mark-up based on selling price: ______(1 pt.)
Solution: (2 pts.)