Margin- the selling Price minus the cost of goods sold.
It is obtained Margin- the selling Price minus the cost of goods sold. It is obtained
by multiplying the selling price by the percentage margin.
Formulas:
Margin= Percentage Margin x Selling Price
Selling Price= Cost + (Percentage Margin x Selling Price)
Cost= Selling Price – (Percentage Margin x Selling Price)
Cost= Selling Price x (1-Percentage Margin)
𝐶𝑜𝑠𝑡
Selling Price =
1−𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛
Word Problems:
1. A home appliance retailer bought ten electric fans at Php 1,050.00
each. He sold each unit with a 25% markup based on the selling price.
Find the a.) selling price for each electric fan b.) margin per electric
fan
2. A gift shop buys wallets for Php 300.00 and sells then for
Php350.00. Find the a.) percentage margin b.) markup rate
Mark on- an increase in the price due to high demand of the product
Formulas:
Mark on= Peak selling price – Original selling price
𝑀𝑎𝑟𝑘 𝑜𝑛
Mark on rate=
𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
Word Problems:
1. Manang Crising observes that market goers prefer to buy fish from
her because there is an undersupply of meat in the market this
season. She then decides to increase the price of galunggong by Php
10.00 per kilo. If the cost of galunggong is Php 90 per kilo with a 35%
markup, what is its new selling price with the additional increase of
Php 10.00? What is the combined mark up and mark on rate?
2. Yvette’s Flower Shop, imposes a 45% mark up on flowers delivered
to them to sell. During All Saint’s Day, an additional mark on of 25%
of the regular selling price is added. Determine the unit price of 300
roses worth Php 15,000 delivered to Yvettes flower shop during All
Saint’s Day. How much is the selling price of each rose during All
Saint’s Day at Yvette’s Flower Shop?
Markdown- a reduction in the selling price of merchandise. It is the
difference between the original selling price and the reduced price.
Formulas:
Markdown=Original Selling Price – Reduced Price
Markdown= Markdown Rate x Original Selling Price
𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛
Markdown rate=
𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
Reduced Price= Original Selling Price – Markdown
Reduced Price= Original Selling Price x (1- Markdown Rate)
Word Problems:
1. A light-emitting diode (LED) lamp regularly priced at Php 1,948.00
is on sale for Php 1,499.00. Compute for the a.)markdown b.)
markdown rate
2. During the clearance sale of a furniture shop, a dining set originally
priced at Php 42,000.00 was sold at a 40% markdown. What is the
reduced price?
3. A fish vendor bought 100 kilograms of bangus at Php 66.00 per
kilogram. He originally set the selling price to obtain 40% gross
margin. However, to ensure that all will be sold, he gave a 15%
markdown. Determine the a.) original selling price b.) reduced price
c.) amount of markdown per kilogram
by multiplying the selling price by the percentage margin.
Formulas:
Margin= Percentage Margin x Selling Price
Selling Price= Cost + (Percentage Margin x Selling Price)
Cost= Selling Price – (Percentage Margin x Selling Price)
Cost= Selling Price x (1-Percentage Margin)
𝐶𝑜𝑠𝑡
Selling Price =
1−𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑀𝑎𝑟𝑔𝑖𝑛
Word Problems:
1. A home appliance retailer bought ten electric fans at Php 1,050.00
each. He sold each unit with a 25% markup based on the selling price.
Find the a.) selling price for each electric fan b.) margin per electric
fan
2. A gift shop buys wallets for Php 300.00 and sells then for
Php350.00. Find the a.) percentage margin b.) markup rate
Mark on- an increase in the price due to high demand of the product
Formulas:
Mark on= Peak selling price – Original selling price
𝑀𝑎𝑟𝑘 𝑜𝑛
Mark on rate=
𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
Word Problems:
1. Manang Crising observes that market goers prefer to buy fish from
her because there is an undersupply of meat in the market this
season. She then decides to increase the price of galunggong by Php
10.00 per kilo. If the cost of galunggong is Php 90 per kilo with a 35%
markup, what is its new selling price with the additional increase of
Php 10.00? What is the combined mark up and mark on rate?
2. Yvette’s Flower Shop, imposes a 45% mark up on flowers delivered
to them to sell. During All Saint’s Day, an additional mark on of 25%
of the regular selling price is added. Determine the unit price of 300
roses worth Php 15,000 delivered to Yvettes flower shop during All
Saint’s Day. How much is the selling price of each rose during All
Saint’s Day at Yvette’s Flower Shop?
Markdown- a reduction in the selling price of merchandise. It is the
difference between the original selling price and the reduced price.
Formulas:
Markdown=Original Selling Price – Reduced Price
Markdown= Markdown Rate x Original Selling Price
𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛
Markdown rate=
𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
Reduced Price= Original Selling Price – Markdown
Reduced Price= Original Selling Price x (1- Markdown Rate)
Word Problems:
1. A light-emitting diode (LED) lamp regularly priced at Php 1,948.00
is on sale for Php 1,499.00. Compute for the a.)markdown b.)
markdown rate
2. During the clearance sale of a furniture shop, a dining set originally
priced at Php 42,000.00 was sold at a 40% markdown. What is the
reduced price?
3. A fish vendor bought 100 kilograms of bangus at Php 66.00 per
kilogram. He originally set the selling price to obtain 40% gross
margin. However, to ensure that all will be sold, he gave a 15%
markdown. Determine the a.) original selling price b.) reduced price
c.) amount of markdown per kilogram