Republic of the Philippines

Department of Education
N a t i o n a l Ca pi t a l Re g i o n
Sc h o o l s D i v i s i o n O f f i c e o f La s Pi ñ a s Ci t y

NAME: ___________________________________________ Score: ___________________

GRADE & SECTION __________________________ Teacher: ___________________

BUSINESS MATH 11
Second Quarter
Week 6
MOST ESSENTIAL LEARNING COMPETENCY
Differentiate mark up from margins. (ABM_BM11BS-Ih-3)
Described how gross margins is used in sales. (ABM_BM11BS-Ih-4)
Compute single trade discounts and discount series. (ABM_BM11BS-Ih-5)

OBJECTIVES
 Identify the original price, discount, and rate of discount in a problem.

WHAT I KNOW
Complete the following:
Cost Mark up Selling Price MUcost MUsp
1. P150 P100 ____________ _______ _______
2. P200 P100 ____________ _______ _______
3. P350 P200 ____________ _______ _______
Solve the following:
4. What percent of 150 is 55?
5. Two hundred eighty is 32% of what amount?
6. What is 30% of 650?
7. What percent of 88 is 4?
Complete the table below:
PERCENTAGE BASE RATE
8. 750 12%
65 9. 25%
1,500 4,500 10.

WHAT’S IN
Margin (also known as gross margin) is sales minus the cost of good sold. Gross margin is easier to arrive at and
is therefor easier to use as well. For example, if a profit sells for P200.00 and costs P140.00 to manufacture, its
gross margin is P60.00. Stated as a percent, the margin is 30% (calculated as the margin divided by sales). This is the
mark up based on sales or selling price.
Mark up is the amount by which the cost of a product is increased in order to derive the selling price. To use the
preceding example, mark up of P60.00 to the P140.00 cost yields the P200.00 selling price. Stated as a percentage, the
mark up percentage is 42.86% (calculated as the mark up amount divided by the product cost). This is the mark up based
on cost.
Therefore, the margin is addressing the profit as it relates to the selling price; whereas, the mark up addresses the
profit as it relates to cost price.

Margin Mark up Based on Cost

(Mark up Based on Sales)
Cost P140 70% 100%
Mark up P60 30% 42.86%
Selling Price P200 100% 142.86%

WHAT’S NEW

A trade discount is the amount by which the retail price of a product is reduced by the manufacturer when it is
sold to the reseller or customer. Trade discount problems are percentage-related problems. The formula used to solve for
the trade discount is given by: Trade discount = (Original Price)•(Discount Rate)
List price is the fee for a service or product before discounts are deducted or sales taxes are added. Net price is
the final charge you pay for a product or service after discounts and sales taxes are computed.

Example 1: In a video store, a DVD that sells for P375 is marked 10% off. What is the trade discount? What is the sale
price of the DVD?
Solution:
Original Price: P375 Discount Rate: 10% Trade Discount: unknown
Trade Discount = (Original Price)(Discount Rate) = (375)(10%) = (375)(0.10) = P37.50
Sale Price of the DVD = Original Price - Trade Discount
= 375 - 37.50
 = P337.50

WHAT’S IS IT
A type of discount in which several discounts are given to a customer at different times and different
conditions is called discount series. Discount series are given to customers in order to encourage them to purchase in
volume. It is also effective in promoting seasonal items and to entice new set of customers.
Example 2: The marked price of a LED TV set is P18,500. a dealer allows two successive discounts of 20% and 5%. For
how much is the TV sold?
Solution:
Net Price = (1 - 0.20)(1 - 0.05)(18,500) = 0.8(0.95)(18,500) = P14,060
Example 3: What single discount is equivalent to two successive discounts of 30% and 15%?
Solution:
Percents given: 30% and 15% Complement of percent given: 70% and 85%, respectively
Multiply: 0.70(0.85) = 0.595 Take the complement percent: 1 - 0.595 = 0.405
Hence, the two successive discounts of 30% and 15% is equivalent to 40.5%
WHAT I HAVE LEARNED
Margin (also known as gross margin) is sales minus the cost of good sold. Gross margin is easier to
arrive at and is therefor easier to use as well.
Mark up is the amount by which the cost of a product is increased in order to derive the selling price.A trade
discount is the amount by which the retail price of a product is reduced by the manufacturer when it is sold to the reseller
or customer. List price is the fee for a service or product before discounts are deducted or sales taxes are added.
Net price is the final charge you pay for a product or service after discounts and sales taxes are computed.
A type of discount in which several discounts are given to a customer at different times and different conditions is called
discount series. Discount series are given to customers in order to encourage them to purchase in volume.

WHAT I CAN DO
Directions: Complete the following.
Original Price Discount Rate Trade Discount Discounted Price
1. P158.75 5% __________ __________
2. P1,300 __________ P104 __________
3. P725 __________ P522 __________
4. __________ 3% __________ P945.75
5. __________ __________ P612.50 __________

ASSESSMENT
Directions: Complete the following.
Original Price Discount Series Single Equivalent Rate Discounted Price
1. P2,145 10% and 2% __________ __________
2. P6,789 15% and 15% __________ __________
3. P3,015 18%, 8%, and 2% __________ __________
4. P4,650 20%, 10%, and 10% __________ __________
5. P9,810 10%, 5%, and 2% __________ __________
Directions: Solve the following problems.
6. A beauty salon is celebrating its first anniversary. They are offering hair rebonding service for only P699 for the
first customers. After the offer, the cost of service will be back to P1,699. What is the estimated discount rate of
the offer?
7. On a closeout sale, a sweatshirts costs P795 after a 75% discount. How much is the sweatshirt’s original price?
8. Cindy wants to buy a volleyball. Its original price is P965 and is on sale at 25% discount. How much will Cindy
save with the discount?
9. A racing bike is listed for P120,000 less 18%, 9%, and 3% successively.
a. what is the net price?
b. what is the total amount of discount given?
c. what is the exact single rate of discount that is given?
10.On items worth P50,000, one supplier from Bulacan offers successive discounts of 15%, 10%, and 12%.
another supplier from Rizal offers successive discounts of 20%, 5%, and 12%. Which has a better offer and by
how much?

ADDITIONAL ACTIVITY
Do what is asked:
Carla purchased the following items from a store.

PRODUCT QUANTITY PRICE PER ITEM

PENS 100 P45
NOTEBOOKS 25 P35
PENCILS 50 P12
PAD PAPER 30 P35

How much will she pay for all the items if successive discounts of 10%, 8%, and 12% were given for the total
Prepared by: Mary Ann E. Bermas, Las Pinas City National Senior High School – Doña Josefa Campus
 purchase?

Prepared by: Mary Ann E. Bermas, Las Pinas City National Senior High School – Doña Josefa Campus