Module Business Math

BUSINESS MATHEMATICS
MODULE 1
Prepared by:
CHARLEM MAE A. LIBRE
Instructor
This module is made to ACADEMICALLY HELP and ENRICH the SCC-SHS students. Please DON’T REPLICATE
without proper permission and authorization.
Dear Student,
Panagdait sa Tanang Kabuhatan!
The success of this module
lies in your hands. This was
prepared for you to learn diligently,
intelligently, and independently.
This will be a great opportunity for
you as a would be teacher to equip
Charlem Mae A. Libre
yourself not only with academic “ But those who wait on the lord shall renew
content but as well as some their strength: they shall mount up with wings like eagles,
they shall run and not be weary, they shall walk and not
invaluable skills which you will be faint.”
very proud of as a responsible

learner
STUDY SCHEDULE AND HOUSE RULES
Course Title: BUSINESS MATHEMATICS
Course Description: This course covers mathematical concepts that are fundamental in the study of
business such as fractions, decimals, percents, ratio, and proportion. People may not know it, but these
concepts are frequently applied in our day-to-day activities, such as cooking (when we make correct
proportins of ingredients) and planning our daily schedule (how much time we will allocate for school
work, house chores, and others. These math concepts will be applied with more focus on business
world. These are essential business math skills.
STUDY SCHEDULE
MODULE 1: Curriculum: An Overview

At the end of the module you will be able to:
1. Demonstrate understanding of fractions, decimals, and percents.
2. Perform addition, subtraction, multiplication, and division of fractions and decimals accurately.
3. Solve business problems involving fractions, decimals, and percents.
4. Demonstrate understanding of ratio and proportion.
5. Formulate and solve problems involving ratio and proportion.
6. Demonstrate understanding of buying and selling.
7. Analyze and solve business-related problems involving buying and selling products.
WEEK TOPIC Date Time
Lesson 1 – Fundamental Operations on
Fractions, Decimals, and Percents PART I
Week 1 01/18/2021 TO
01/22/2021
Lesson 2 – Ration and Proportion
Lesson 3 – Buying and Selling Part I

01/25/2021 TO
Week 2
01/29/2021
Lesson 4 – Buying and Selling Part II
Lesson 5 – Profit and Loss PART I

02/01/2021 TO
Week3
02/05/2021
Lesson 6– Profit and Loss PART II
PRELIM EXAMINATION
The following guides and house rules will help you to be on track and complete the
module with a smile on your face.
1. Read and understand every part of the module. If there are some contents or tasks
which you find difficult to understand, try to re-read and focus. You may also ask help
from your family at home, if it doesn’t work, you may send a private message on my
Facebook account (Charlem Mae Alangcas) or you may text me on this cellphone
number 09982755542.
2. Each module begins with an overview and a list of the topics you are expected to learn.
3. Before reading the module and working on the activities, answer the pretest first. Find
out how well you did by checking your answers against the correct answers in the
answer key.
4. At the end of each lesson try to reflect and assess if you were able to achieve the
learning objectives. Remember that you can always read again if necessary.
5. Learn to manage your time properly. Study how you can manage to work on this
module in consideration of your other modules.
6. Each module has worksheets where you can do all your activities. At the end of the
month, remove the worksheets and submit them to your teacher.
7. Have patience and do not procrastinate.
8. Practice the virtue of honesty in doing all your tasks.
9. Lastly, the activities in the module must be done by you and not by others. Your family
and friends may support and guide you but you must not let them do the work. DO
YOUR BEST AND GOD WILL DO THE REST.
CHARLEM MAE A. LIBRE

Instructor
MODULE 1
BUSINESS
MATHEMATICS
MODULE CONTENTS
I. Lesson 1 – Fundamental Operations on Fractions,

Decimals, and Percents
II. Lesson 2 – Ration and Proportion
III. Lesson 3 – Buying and Selling Part I

IV. Lesson 4 – Buying and Selling Part II
V. Lesson 5 – Profit and Loss PART I
VI. Lesson 6– Profit and Loss PART II
Curriculum: An Overview
What is this Module about?
Mathematics is an important part of managing business. Business and mathematics

go hand in hand this is because business deals with money and money encompasses
everything in itself. There is a need for everyone to manage money as some point or the
other to take decisions which requires everyone to know mathematics. Business
mathematics is used by commercial enterprises to record and manage business
operations. Commercial organizations use mathematics in accounting, inventory
management, marketing, sales forecasting, and financial analysis. It helps you know the
financial formulas, fractions; measurements involved in interest calculation, hire rates,
salary calculation, tax calculation etc. which help complete business tasks efficiently.
Business mathematics also includes statistics and provides solution to business problems.
Business is always surrounded with challenges which need to be dealt with in a

proper fashion so that they do no arise in future. These problems that occur on a daily
basis can be effectively solved with the help of mathematical models. Hence mathematics
not only helps to calculate but also analyze business problems and work upon them.
Learning and using business mathematics enables a person to think out of the box,
sharpens one’s thinking and helps in precisely formulating and structuring relationships.
PRETEST
To find out how much you already know about the concepts in this module, Answer the Pretest
below.
Name: ____________________________________________ Course & Year: ____________
Solve the following problems
1. Forty-eight ABM students were included in the entrance interview for college.
Three-fourths of them decided to take Accountancy If ¼ of the remaining
students opted for Entrepreneurship and the rest will take management
courses in college, how many students will take each course?
2. How many packages of rice can be prepared out of 1 sack of rice (50kg) if a
pack of rice weighs 2 ½ kg?
Module 1 Fundamental Operations on Fractions,

Lesson 1 Decimals, and Percents
Learning Objectives:
At the end of this lesson students will be able to:
1. Identify examples of different kinds of fractions and decimals

2. Perform fundamental operations on fractions and decimals
3. Express fractions in decimal and percent forms, and vice versa
4. Illustrate how decimals and fractions can be written in percent form and vice versa
5. Give real-life situations to illustrate fractions, decimals and percents
6. Solve problems involving fractions, decimals, and percents.
Fractions, decimals and percentages are everywhere in life. Interest rates are quoted
using percentages, the amount of fuel you have left in your car is often seen as a fraction on a
dial, money is written using decimals. Yet fractions, decimal and percentages are essentially
the same thing written in three different ways.
What are percentages?
A percentage is another way of writing a decimal. Just like decimals, a percentage is

a part of a whole. Basically, it's less than 1 whole thing, but more than 0.
We use percentages all the time in real life. For example, have you ever left a
fifteen percent tip at a restaurant? Or bought something on sale for twenty percent off?
Those are both percentages—15 percent and 20 percent.
Writing percentages
As you saw in the slideshow, every percentage has two parts: a number and
the percent sign (%). When you write a percentage, you'll write the number first, then the
percent sign. Let's try it! How would you write this percentage?
nine percent
First, we'll write the number, nine, and then the percent sign (%). So our percentage
will look like this:
9%
Lesson 1 SELF CHECK

Name: _____________________________________________ Course & Year: ___________
Directions: Perform the tasks below. Provide your answers on the space provided.
Instruction: Solve the following problems.
1. Lucas received his monthly allowance amounting to P40,000. If he allocates ½ of it for his
work allowance and ¼ of the remaining money for transportation, how much is his
transportation allowance?
2. How many floor tiles (30cm x 30cm) do you need for an area measuring 6 3//4 m and 5 ½
m?
Module 1 Ratio and Proportion

Lesson 2
Learning Objectives
At the end of the lesson, students should be able to:
 Compare and differentiate between ratio and rate.

 Illustrate how to write and simplify ratios and rates
 Write proportions illustrating real-life situations
 Identify the different kinds of proportion and give example for each.
 Solve problems involving direct, inverse, and partitive proportions.

Difference Between Ratio and Proportion
Ratio and Ratio and proportion are two mathematical concepts which have end number of
practical applications in different spheres of life. The ratio is used to compare the quantities
of two different categories like the ratio of men to women in the city. Here, men and women
are the two different categories.
On the contrary, Proportion is used to find out the quantity of one category over the total,
like the proportion of men out of total people living in the city.
Ratio defines the quantitative relation between two amounts, representing the number of
time one value contains the other. Conversely, Proportion is that part that that explains the
comparative relation with the entire part.
BASIS FOR
RATIO PROPORTION
COMPARISON
Meaning Ratio refers to the When two ratios are set

comparison of two equal to each other, it is
values of the same unit. called as proportion.
What is it? Expression Equation
Denoted by Colon (:) sign Double Colon (::) or Equal to

(=) sign
Represents Quantitative relationship Quantitative relationship of a

between two categories. category and the total
FOR THE LESSON PROPER
Please continue to read the files in http://bit.ly/diwa-BUSMATHED
Lesson 2 SELF CHECK

Name: _____________________________________________ Course & Year: ___________

1. Last month, your mother asked you to purchase a bottle of branded vitamins worth P238, which
she plan to consume for two weeks. After your mother has finished the bottle, you decided to
buy generic vitamins for another two weeks consumption of your mother. The generic vitamins
cost P56 a bottle. Find the ratio of the price of a branded vitamin to a generic vitamin.
2. You and your best friend have decided to share resources at a ratio of 11:15 as your initial
capital for a small business. If you have invested P275,000, how much did your best friend
invest?
Module 1
Lesson 3 Buying and Selling Part 1
Learning Objectives
At the end of the lesson students should be able to:

 Differentiate mark-on, markdown, and markup
 Illustrate how mark-on, markdown, and markup are obtained
 Differentiate markup from margin
 Describe how gross margins are used in sales
New price refers to the price of the item after the markup or the markdown has been applied.
Old price refers to the price of the item before the markup or the markdown has been applied.
If you buy something for $500 and subsequently sell it for $800, then the cost of the item is the old price
and the selling price of the item is the new price. The markup is the absolute value of the difference
between the selling price and the cost.
If the retail price of something is $700 and you subsequently sell it at a discounted price of $500, then
the retail price is the old price and the discounted price is the new price. The markdown is the absolute
value of the difference between the discounted price and the retail price.
Markup is what you add to the price of an item.

The new price is greater than the old price.
The absolute value of the difference is the markup.
You calculate the markup by taking the absolute value of the difference between the new price and the
old price.
The markup rate is the markup divided by the old price.
The markup percent is the markup rate * 100%.
Markdown is what you subtract from the price of an item.

The new price is less than the old price.
The absolute value of the difference is the markdown.
You calculate the markdown by taking the absolute value of the difference between the new price and
the old price.
The markdown rate is the markdown divided by the old price.
The markdown percent is the markdown rate * 100%

Lesson 3 SELF- CHECK
Name: _____________________________________________ Course & Year: ___________
1. If the selling price of an item has been increased from P495 to P650, what is the
markup rate?
2. If the previous selling price of an expandable folder was P23.50 and the current selling
price is P26.75, what was the markup rate?
This module
Moduleis made
1 to ACADEMICALLY HELP and ENRICH the SCC-SHS students. Please DON’T REPLICATE
Lesson 4
Buying and Selling Part 2
Learning Objectives
1. Differentiate single trade discounts from discount series
2. Illustrate how to compute single trade discounts and discount series
3. Compute cash discounts
4. Solve problems involving buying and selling products
Definition: A trade discount is the reduction in price a manufacturer or wholesaler gives a

wholesaler or retail when they buy a product or group of products. In other words, a trade
discount is a certain percentage a manufacturer is willing to reduce its list price for wholesalers
or retailers.
What Does Trade Discount Mean?
Manufacturers and wholesalers typically produce catalogs for customers and vendors to
order products from. The prices listed in the catalogs are often called list prices or manufacturers
suggest retail price (MSRP). Other business within the industry that use the manufacturers
products rarely pay list price for them. Instead, the manufacturer gives the wholesaler or retailer
a discount on each purchase or a percent off of the list price.
A trade discount is different than a sales discount because a trade discount does not have
the same restrictions as a purchase discount. Trade discounts are usually given to wholesalers
that order large quantities of a product as well as retailers with good relationships with the
manufacturer. Purchase discounts or cash discounts are based on payment plans not order
quantities.
Example
The amount of the trade discount varies depending on who is ordering the products and the
quantities they are ordering. For instance, a retailer might only order 100 t-shirts from a
manufacturer at a time and receive a 5 percent trade discount. A wholesaler, on the other hand,
might order 1,000 t-shirts at a time and could receive a 12 percent discount. Trade discounts are
also based on customer loyalty and vendor relationships over time.

Lesson 4 SELF- CHECK
Name: _____________________________________________ Course & Year: ___________

Do what is asked in the following:

1. Illustrate how to compute single trade discounts , discount series, and cash
discounts
2. Find the net price of a chiller that is listed for P19,950 and has a trade
discount rate of 30%.
Module 1
Lesson 5 Profit and Loss PART 1
Learning Objectives
 Differentiate profit and loss
 Describe how cost of goods sold is computed
 Illustrate how net sales is determined
 Explain the difference between gross and net profit/loss
Profit and Loss formula is used in mathematics to determine the price of a commodity in the market
and understand how profitable a business is. Every product has a cost price and selling price. Based on
the values of these prices, we can calculate the profit gained or the loss incurred for a particular product.
The important terms covered here are cost price, fixed, variable and semi-variable cost, selling price,
marked price, list price, margin, etc. Also, we will learn the profit and loss percentage formula here.
For example, for a shopkeeper, if the value of selling price is more than the cost price of a commodity,
then it is a profit and if the cost price is more than the selling price, it becomes a loss.
Profit and Loss Basic Concepts

Let us learn profit and loss concepts in maths. It is well explained in terms of cost price and selling
price.
Profit(P)
The amount gained by selling a product with more than its cost price.
Loss(L)
The amount the seller incurs after selling the product less than its cost price, is mentioned as a loss.
Cost Price (CP)

The amount paid for a product or commodity to purchase it is called a cost price. Also, denoted as CP.
This cost price is further classified into two different categories:
 Fixed Cost: The fixed cost is constant, it doesn’t vary under any circumstances
 Variable Cost: It could vary depending as per the number of units
Selling Price (SP)

The amount for which the product is sold is called Selling Price. It is usually denoted as SP. Also,
sometimes called a sale price.
Marked Price Formula (MP)

This is basically labelled by shopkeepers to offer a discount to the customers in such a way that,
 Discount = Marked Price – Selling Price

 And Discount Percentage = (Discount/Marked price) x 100
Profit and Loss Formulas

Now let us find profit formula and loss formula.
 The profit or gain is equal to the selling price minus cost price.
 Loss is equal to cost price minus selling price.
Profit or Gain = Selling price – Cost Price
Loss = Cost Price – Selling Price
The formula for the profit and loss percentage is:
Profit percentage = (Profit /Cost Price) x 100

Loss percentage = (Loss / Cost price) x 100
Lesson 5 SELF CHECK

Name: _____________________________________________ Course & Year: ___________
Solve the problem and show your solutions.
At the beginning of the year, the inventory of a convenience store was P189,950.
The purchases made during the year amounted to P90,460. The ending inventory (at the
end of the year) was P86, 780. Its aslaries expenses amounted to P325,450, and its rental
expense was P420,000. The store owner also allocated P135,200 for utilities. The store
also received sales returns worth P49,890. The total sales of the convenience store was
P1,875,000. What is the net profit/loss of the convenience store?
Module 1
Lesson 6 Profit and Loss PART 2
Learning Objectives
 Compute gross and net profit/loss
 Illustrate how profit is obtained and how to avoid loss in a given transaction
 Define break-even
 Illustrate how to determine the break-even point.
Profit and Loss Examples

 If a shopkeeper brings a cloth for Rs.100 and sells it for Rs.120, then he has made a profit of Rs.20/-.
 If a salesperson has bought a textile material for Rs.300 and he has to sell it for Rs.250/-, then he has gone
through a loss of Rs.50/-.
 Suppose, Ram brings a football for Rs. 500/- and he sells it to his friend for Rs. 600/-, then Ram has made a
profit of Rs.100 with the gain percentage of 20%.
These are some common examples of the profit and loss concept in real life, which we observe regularly.
Profit and Loss Tricks

You have learned until now how to calculate profit as well as loss and also the percentage of them. Now let us learn
some tricks or formulas to solve maths problems based on gain and loss, starting from the general formulas.
1. Profit, P = SP – CP; SP>CP

2. Loss, L = CP – SP; CP>SP
3. P% = (P/CP) x 100
4. L% = (L/CP) x 100
5. SP = {(100 + P%)/100} x CP
6. SP = {(100 – L%)/100} x CP
7. CP = {100/(100 + P%)} x SP
8. CP = {100/(100 – L%)} x SP
9. Discount = MP – SP
10. SP = MP -Discount
11. For false weight, profit percentage will be P% = (True weight – false weight/ false weight) x 100.
12. When there are two successful profits say m% and n%, then the net percentage profit equals to (m+n+mn)/100
13. When the profit is m% and loss is n%, then the net % profit or loss will be: (m-n-mn)/100
14. If a product is sold at m% profit and then again sold at n% profit then the actual cost price of the product will
be: CP = [100 x 100 x P/(100+m)(100+n)]. In case of loss, CP = [100 x 100 x P/(100-m)(100-n)]
15. If P% and L% are equal then, P = L and %loss = P2/100
Lesson 6 SELF CHECK

Name: _____________________________________________ Course & Year: ___________
Solve the following problems and show your solutions.
1. An applaince center is selling a 1.5 hp inverter air-conditioning (AC) unit for P24,999 at an
initial markup rate of 30%. Compute the cost of the AC unit and the initial markup.
2. What was the list price of an induction cooker that was subject to a series of discounts of 15/10/5
if the net price is P2,875? What is the equivalent single rate of discount?
Good job! Keep on reading the rest of the module to learn more. God
Bless!
REFERENCES:
http://bit.ly/diwa-BUSMATHED
Textbook: Business Math secod edition by IRENE P. SOLANO, Ed. D. 2020

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BUSINESS MATHEMATICS

very proud of as a responsible

Course Title: BUSINESS MATHEMATICS

MODULE 1: Curriculum: An Overview

Lesson 3 – Buying and Selling Part I

Lesson 5 – Profit and Loss PART I

CHARLEM MAE A. LIBRE

I. Lesson 1 – Fundamental Operations on Fractions,

II. Lesson 2 – Ration and Proportion

III. Lesson 3 – Buying and Selling Part I

Mathematics is an important part of managing business. Business and mathematics

Business is always surrounded with challenges which need to be dealt with in a

Name: ____________________________________________ Course & Year: ____________

Solve the following problems

Module 1 Fundamental Operations on Fractions,

At the end of this lesson students will be able to:

1. Identify examples of different kinds of fractions and decimals

What are percentages?

A percentage is another way of writing a decimal. Just like decimals, a percentage is

Lesson 1 SELF CHECK

Instruction: Solve the following problems.

Module 1 Ratio and Proportion

At the end of the lesson, students should be able to:

 Compare and differentiate between ratio and rate.

Difference Between Ratio and Proportion

Meaning Ratio refers to the When two ratios are set

What is it? Expression Equation

Denoted by Colon (:) sign Double Colon (::) or Equal to

Represents Quantitative relationship Quantitative relationship of a

Lesson 2 SELF CHECK

Solve the following problems

At the end of the lesson students should be able to:

Markup is what you add to the price of an item.

Markdown is what you subtract from the price of an item.

FOR THE LESSON PROPER

Solve the following problems

Definition: A trade discount is the reduction in price a manufacturer or wholesaler gives a

What Does Trade Discount Mean?

FOR THE LESSON PROPER

Name: _____________________________________________ Course & Year: ___________

Do what is asked in the following:

Profit and Loss Basic Concepts

Cost Price (CP)

Selling Price (SP)

Marked Price Formula (MP)

 Discount = Marked Price – Selling Price

Profit and Loss Formulas

Profit percentage = (Profit /Cost Price) x 100

Lesson 5 SELF CHECK

Solve the problem and show your solutions.

Profit and Loss Examples

Profit and Loss Tricks

1. Profit, P = SP – CP; SP>CP

Lesson 6 SELF CHECK

Solve the following problems and show your solutions.

Textbook: Business Math secod edition by IRENE P. SOLANO, Ed. D. 2020

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