DIVISION OF GEN.

TRIAS CITY
Project ISuLAT– ACTIVITY SHEETS in MATH
(Intensified Support to Learning Alternatives Through Activity Sheets)

Name: _______________________________ Date: _____________

Grade/Section: _________________________ Score: _____________
Teacher: __________________________ Parent’s Signature: __________

LEARNING ACTIVITY SHEET IN GRADE 11

BUSINESS MATHEMATICS-MARK-ON, MARK DOWN AND MARK-UP
FIRST QUARTER WEEK 5
ACTIVITY SHEET NO. 1

GEAR UP

Most Essential Learning Competency (MELC) with code

 Differentiate Mark-on, Mark down and Mark-up
 Illustrate how Mark-on, Mark-down, and Mark-up are obtained

Objectives:
1. Define the mark-on, markup and markdown given the price of a product.
2. Solve problems related to mark-on, markup and markdown given the price of a product.
3. Differentiate mark-on, mark down and mark-up obtain mark-on, mark-down, and mark-up
given price of a product
4. Apply the concepts of buying and selling in the business

ENGAGE

What I need to know?

Image from: https://www.newbreedmarketing.com/hs-fs/hubfs/shutterstock_730326268.jpg?

width=7000&name=shutterstock_730326268.jpg
Guide questions:
1. What can you say about this picture?
2. What does the tag price all about?
3. How important do you think is pricing in business?
4. Why do you think it is important?

PREPARED BY: RENALYN GARCIA Page 1 of 8

 DIVISION OF GEN. TRIAS CITY
Project ISuLAT– ACTIVITY SHEETS in MATH
(Intensified Support to Learning Alternatives Through Activity Sheets)

This lesson will help you to differentiate the mark-on, markup, and markdown. This lesson focuses
on solving problems related to mark-on, markup and markdown given the price of a product. We will
also learn how to apply the concepts of mark-on, markup, and markdown particularly in the business.
After going through this module, you are expected to:

1. Define the mark-on, markup and markdown given the price of a product.
2. Solve problems related to mark-on, markup and markdown given the price of a
product.
3. Differentiate mark-on, mark down and mark-up obtain mark-on, mark-down,
and mark-up given price of a product
4. Apply the concepts of buying and selling in the business.

NURTURE

Let’s familiarize first to the terms that we will be using for us to fully understand the lesson.

1. Cost - is the amount paid to the manufacturers or suppliers after trade and cash
discounts have been taken. shipping and insurance charges are including in cost.

2. Selling Price - is the price at which merchandise offered for sale to the public. To
cover the expenses or overhead of running the business, a mark-up (M) is put on
products. The sum of the cost (C) and Mark-up (M) determine the selling price (S).

S=Cost + Expenses+ Profit

S=C+ M
3. Markup - is the difference of the cost and the selling price or the sum of the expenses (E)
and profits (P).

Mark up=Expenses+ Profit

M =E+ P
When markup is expressed as a percentage of the cost or sellling price, we call it the
rate of markup.

Based on cost - Manufacturers (also some wholesalers or retailers)

The formula for the rate of markup is based on cost denoted by M c is given by:
Markup M
M c (%)=( )(100)∨( )(100)
Cost c

The formula for the rate of markup is based on selling price denoted by M s is given by:

Based on selling price – Retailers

Markup M
Ms ( % ) = ( 100 )∨( )(100)
Selling Price SP

PREPARED BY: RENALYN GARCIA Page 2 of 8

 DIVISION OF GEN. TRIAS CITY
Project ISuLAT– ACTIVITY SHEETS in MATH
(Intensified Support to Learning Alternatives Through Activity Sheets)

4. Markdown - is the reduction in the original selling price.

 A Mark down may be done temporarily or permanent.

 A temporary markdown is a reduction in the selling price of an item to encourage
consumers to increase their demand on a particular product.
 Permanent markdown is implemented by companies to remove a “poor-sales”
product from their inventory.
 The following Formulas relate the Selling Price (S), Original price ( PO ) and
Mark-down rate ( M d )

S=P O (1−M d )

S
Po=
1−M d

S
M d =1−
PO

5. Mark-on - When the price of a retail product increases soon after another
Increase
A. Now let’s practice on how we are going to apply these concepts in solving problems related to mark-
on, markdown, markup, and selling price.

1. A clothing line company purchases cotton at a cost of P60 per meter. Thirty percent of the cost
goes to their operating expenses. The goal of the business is to earn a profit that is 25% of the
cost. How much should the company’s mark-up on the cotton? How much should the selling
price be? (integration to economics)

Solution:

Given: Cost – P60 per meter

Operating Expenses – 30% of the cost
Profit - 25% of the cost

Markup = Expenses + Profit

= (0.3) (60) + (0.25) (60)
= 18 + 15
= P33
The company may sell the product by adding the cost and the markup. Selling Price = Cost +
Markup = 60 + 33 = P93 per meter

2. The cost of a new pair of sunglasses is P4,500. The selling price is P8,000. What is the rate of
Mark-up based on cost?

Solution:
Since SP = C + M

PREPARED BY: RENALYN GARCIA Page 3 of 8

 DIVISION OF GEN. TRIAS CITY
Project ISuLAT– ACTIVITY SHEETS in MATH
(Intensified Support to Learning Alternatives Through Activity Sheets)

M = SP – C = 8,000 – 4,500 = P3,500

Computing for the rate of markup based on cost,

Mc (%) = 𝑴𝒂𝒓𝒌𝒖𝒑/𝑪𝒐𝒔𝒕 (100) or (𝑴/𝑪 ) (100)
= 3500/ 4500 (100)
= 0.7778 x 100% = 77.78%

3. A new pair of shoes costs P5,500. The rate of Mark-up based on the selling price is 15%. What
are the selling price and the mark-up?

Solution:

Given: Ms = 15% or 0.15s

Cost = P5,500
S=?
M=?

S = 5,500 + 0.15S
S – 0.15S = 5,500
0.85S/0.85= 5,000/0.85
S = P6,470.59

To compute the markup, we have

M = 0.15S
= (0.15) (6,470)
= P970.59

Markup can also be computed by

M=S–C
= 6,470.59 – 5,500
= P970.59
4. After a Christmas season, Sharon is considering reducing the price of a gift wrapper. Her original
price is P30.

A. If she wants to decrease its price to P21, what is the markdown rate?
B. Suppose Sharon wishes to calculate the wrapper price based on the markdown rate of just 20%,
how much would her gift wrapper cost?
Solution:
A. Md = 1 – 𝑺/𝐏𝐨
= 1 – 21/30
= 0.3
= 30%
B. S = Po (1 - Md)
= 30 (1 – 0.2)
= P24

PREPARED BY: RENALYN GARCIA Page 4 of 8

 DIVISION OF GEN. TRIAS CITY
Project ISuLAT– ACTIVITY SHEETS in MATH
(Intensified Support to Learning Alternatives Through Activity Sheets)

5. Find the markdown rate if the DVD was originally priced at P290.00 and was sold at P240.00.
Markdown
= Original price – Selling price
= 290 – 240
= P50
Markdown rate = 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛/𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
= 50/240
= 0.21
= 21%

6. Manuel owns a flower shop in Dangwa. He knows that a lot of male customers will buy roses
few days before Valentine’s Day. The cost of bouquet of roses is P80. A week before Valentine’s
Day, the rate of markup based on the selling price of the bouquet is 10%. Manuel knew that even
if he increases the selling price of bouquet of roses, people will still buy it. So, he decided to put
a mark-on of 5% to its selling price?

a. How much is the actual selling price?

b. How much is the mark up?
c. How much is the additional mark-on?
d. How much is the new selling price after additional mark-on?

Solution:

A. Since M = 0.10S
S=C+M
= 80 + 0.10S
S – 0.10S = 80
0.9S/0.9 = 80 /0.9
S = P88.89

B. 0.10(88.89) = P8.89

C. Mo = 0.05S = 0.05 (88.89) = P4.45

D. New selling price NS = S + Mo = 88.89 + 4.45 = P93.34

B. Differentiate mark-on, mark down and mark-up obtain mark-on, mark-down, and mark-up given
price of a product

TEST

Find the missing words by answering the following problems. Each answers have its
corresponding letters. These letters are the keys in unveiling the missing words. Show your complete
solution for each problem on a separate sheet of paper.

PREPARED BY: RENALYN GARCIA Page 5 of 8

 DIVISION OF GEN. TRIAS CITY
Project ISuLAT– ACTIVITY SHEETS in MATH
(Intensified Support to Learning Alternatives Through Activity Sheets)

1. A computer store used a markup rate of 40%. Find the selling price of a computer game that cost
the retailer P1000.00
2. A golf store pays its wholesaler P 1600 for a certain club, and then sells it to a golfer for P 3000.
What is the markup rate?
3.  a store uses a 40% markup on cost. Find the cost of a pair of shoes that sells for P2520
4. A product is originally priced at P2200 is marked 25% off. What is the sale price?
5. A product that regularly sells for P17,000.00 is marked down to P12,750.00. What is the discount
rate?
6. A product is marked down 15%; the sale price is P5,098.40. What was the original price?
7. A sells to B an item at 15% profit. B sells the same item to c at 20% profit. If C pays P66, 240 for
it. What is the price at which A bought the item?
8. Mr. Lenin sold a chair at a loss of 15%. If he had sold at a mark up rate of 10%, he would have
got P4000 more. What is the cost price of the chair? 
9. On selling 20 units of an item, the profit is equal to cost price of 4 units. Find the mark up rate.

S M E L F
1400 32.5% 87.5% 1800 1100

T I B N W
33.33% 1650 48000 25% 4500

H U G K Y
46 16000 5998 32000 20%

(1) (2) (3) (3) (4) (5) (6) A N D (7) (8) (9) (4) (5) (6)

INTEGRATE

PREPARED BY: RENALYN GARCIA Page 6 of 8

 DIVISION OF GEN. TRIAS CITY
Project ISuLAT– ACTIVITY SHEETS in MATH
(Intensified Support to Learning Alternatives Through Activity Sheets)

References

 Books
o Lopez, Brian Roy C., Martin-Lundag, Leah C., Dagal, Keneth Adraian P., Business
Math, Senior High School, Vibal Group Inc., pp. 72-95

o Fragata, Jennalyn R., M.A.Ed, Business Mathematics-Activity Sheet, Teachers

Developed Materials, 54-62

o Lorna I. Paredes, Ph.D., Ma. Lailani B. Walo, Ph.D., Aurelio P. Ramos Jr., Mark
Adrian S. Asinas, Joy Cando-Asuncion, Teaching Guide for Senior High School
BUSINESS MATHEMATICS, The Commission on Higher Education in
collaboration with the Philippine Normal University, pp. 67-90

 Online Resources
o https://www.accountingtools.com/articles/what-is-the-difference-between

PREPARED BY: RENALYN GARCIA Page 7 of 8

 DIVISION OF GEN. TRIAS CITY
Project ISuLAT– ACTIVITY SHEETS in MATH
(Intensified Support to Learning Alternatives Through Activity Sheets)

Image from: https://www.newbreedmarketing.com/hs-fs/hubfs/shutterstock_730326268.jpg?

width=7000&name=shutterstock_730326268.jpg
https://www.onlinemath4all.com/markup-and-markdown-word-problems-answers.html

PREPARED BY: RENALYN GARCIA Page 8 of 8