BUSINESS

MATHEMATICS
(SHS-BUSMAT)
 Content Standard: The learners demonstrate an
understanding of the key concepts of in buying and
selling.
LESSON 3: Performance Standard: The learners are able to
analyze and solve problems on important factors in
managing a business: buying products and selling
BUYING AND SELLING: products.

MARK – ON, Learning Competencies: The learners should be

able to:
MARK – UP, 1. Differentiate mark – on, mark – up, and mark -
down;
MARK - DOWN 2. Illustrate how mark – on, mark – up and mark –
down are obtained, and;
3. Solve problems involving mark – on, mark – up
and mark – down.
MARK - ON
 • The price that includes all the expenses
CO in the production of the of the product.
ST

SEL • The price at which the item is being

LIN
G sold.
PR
ICE

PR • The financial gain.

OF
IT
 MARK - ON
Definition: Mark - on refers to
what percentage must be added
to the production cost of
commodity in order to attain the
selling price and to create a
profit.
Mark – on rate is the
percentage of the cost to be
added to determine the selling
price.
Things to consider on
determining mark – on rate:
• How much profit does the
business want?
• How much the business
need to cover all expenses?
• Competitors
• Target Market
• Quality of service you would
like to provide.
 FORMULAS
Mark – on = (Mark – on rate)(Cost price) Selling Price = Cost Price + Mark – on
SELLING
PRICE
Mark – on = (Mark – on rate)(Selling price)
MARK - ON Cost Price = Selling Price - Mark – on

Mark – on = Selling Price – Cost Price COST PRICE

MARK – ON RATE

a. Based on
Cost

b. Based on
Selling Price
1. PRIMAR Chicken depot sell a
bag of fresh chicken to a retailer
at Php 1,250 per bag. After a
day of selling, the retailer has
Php 1,525 per bag. Determine
the mark-on.
2. Marisol bought bags for her
store that cost Php 600 each. To
make her desired profit, Marisol
must mark – on each bag 32%
on cost. What must be selling
price of the bag?
3. A pair of running shoes is
marked on at Php 2,100 which is
60% mark – on based on the
cost. What is the cost of the
shoes?
4. A laser printing machine costs
Php 8,750 and is sold for Php
12,250. What is the mark-on
rate based on cost?
5. What is the cost of an item
that has a selling price of Php
240 and a mark-on rate of 60%
based on selling price.
MARK - DOWN
SEL • The price at which the item is being
LIN sold.
G
PRI
CE

RED
UCE • The discounted price of an item
D from the regular selling price.
SELL
ING
PRIC
E
 MARK - DOWN
Why do we put MARK DOWN?
Definition: Mark - down is the
practice of lowering the regular
• To entice costumers to buy
or original selling price of a
more items.
certain product or goods.
• To make the price appealing.
• To get rid of slow – moving
Mark – down rate is the
merchandise
percentage of the amount to be
• To stimulate increased sales
subtracted to determine the
• To meet the prices of
reduced selling price.
competitors
 FORMULAS
Mark – down = (Mark – down rate)(Selling Price)

MARK – DOWN
Mark – down = Selling Price – Reduced Selling Price

MARK – DOWN RATE

Reduced Selling Price = Selling Price – Mark – down
REDUCED SELLING PRICE

Selling Price = Reduced Selling Price + Mark – down

SELLING PRICE
1. The appliance store put their
items on sale. What are the
mark-down and the sale price of
a smart television that has a
regular price of Php 25,800 and
is on sale for 25% off the
regular price?
2. A shoe store declares to
reduce the prices of their
running shoes. If the average
selling price of a running shoes
is Php 6,500 and its sale price is
Php 4,940. What are its mark-
down and mark-down rate?
3. Determine the original selling
price of an item with an 16%
mark-down rate when placed on
sale at cost of Php 7,899.
MARK - UP
PRICE • The original selling price is further
NG
SELLI increased.
ASED
INCRE

CE • The original selling price at which

the item is being sold.
PRI
G
LIN
SEL
 MARK - UP

Definition: Mark - up is the

amount by which the regular or
original selling price is further When do we put MARK UP?
increased.
• When stock is limited and
Mark – up rate is the the demand is high.
percentage of the amount to be
added to determine the
increased selling price.
 FORMULAS
Mark – up = (Mark – up rate)(Selling Price)

MARK – UP Mark – up = Increased Selling Price – Selling Price

MARK – UP RATE
Increased Selling Price = Selling Price + Mark – up
INCREASED SELLING PRICE

Selling Price = Increased Selling Price – Mark - up

SELLING PRICE
1. Klee observes that market
goers prefer to buy fish from her
because of the undersupply of
meat. She then decided to
increase the price of bangus by
Php 20 per kilo. If the cost of
bangus is Php 100 with a 35%
mark – on, what is the new
selling price?
2. A local water supplier
business charges Php 22.50 per
cubic per meter of water
consumption. Next month, the
charge will be Php 23.15 per
cubic meter. Find the mark up
rate.
3. JPD Sports Inc. sells home-
gymnasium package for Php
145, 000 and maintains a mark-
up of 37% on selling price. What
is the mark-up value?
[END] • Mark on, mark down and mark up
(Definitions)
LESSON 3: • Cost, Selling price, Profit, Reduce selling
price, Increased selling price (Terms
BUYING AND SELLING: related to buying and selling)
• Difference between mark on, mark up
MARK – ON, and mark down
• Solving situational problems involving
MARK – UP, mark on, mark up and mark down.
MARK - DOWN