Senior High School
Business Mathematics
Module 5:
Profit or Loss
AIRs - LM
LU_Business Mathematics_Module5
Senior High School
Business Mathematics
Module 5:
Profit or Loss
LU_Business Mathematics_Module 5
Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear
learners, can continue your studies and learn while at home. Activities,
questions, directions, exercises, and discussions are carefully stated for you
to understand each lesson.
Each SLM is composed of different parts. Each part shall guide you
step-by-step as you discover and understand the lesson prepared for you.
Pre-tests are provided to measure your prior knowledge on lessons in
each SLM. This will tell you if you need to proceed on completing this module
or if you need to ask your facilitator or your teacher’s assistance for better
understanding of the lesson. At the end of each module, you need to answer
the post-test to self-check your learning. Answer keys are provided for each
activity and test. We trust that you will be honest in using these.
In addition to the material in the main text, Notes to the Teacher are
also provided to our facilitators and parents for strategies and reminders on
how they can best help you on your home-based learning.
Please use this module with care. Do not put unnecessary marks on
any part of this SLM. Use a separate sheet of paper in answering the exercises
and tests. And read the instructions carefully before performing each task.
If you have any questions in using this SLM or any difficulty in
answering the tasks in this module, do not hesitate to consult your teacher
or facilitator.
Thank you.
LU_Business Mathematics_Module 5
Target
Now that you know about markup, markdown, and markup cancellation, let
us study profit or loss. Profit is what remains of the selling price (sales) after all costs
and expenses had been deducted. Cost means the cost of the product sold or service
rendered. Expenses refer to operating expenses and financial expenses. Loss occurs
when the cost and expenses exceed the selling price sales.
After going through this learning material, you are expected to:
1. differentiate profit from loss (ABM_BM11BS-Ii-6), and
2. illustrate how profit is obtained and how to avoid loss in a given
transaction (ABM_BM11BS-Ii-7).
Before going on, check how much you know about the topic. Answer the
pretest on the next page in a separate sheet of paper.
LU_Business Mathematics_Module 5
Lesson
PROFIT OR LOSS
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Jumpstart
Activity 1: It’s time for word search!
Direction: Locate and encircle the words listed below. Words may appear straight
across, backward straight, up and down, down and up, and diagonally.
PROFIT COST SERVICES
LOSS SELL PRODUCTS
EXPENSES PRICE SALE
E X T T S O C O S
I T P O L S T U E
S C R E S U W H C
P R O D U C T S I
R O F E O L P G V
I L I V L R O N R
C L T C V A I S E
E E X P E N S E S
L S S U G L Y A I
Activity 2
Direction: Read and analyze the word problem carefully. Then, solve for what is
asked. Show your complete solution.
1. You bought a bag for ₱800. You spent ₱50 for transportation in going to the
store to buy it. On the following independent cases, determine whether you earn a
profit or incurred a loss. Determine how much your profit or loss was.
a. You sold the bag to your friend for ₱1000.
b. You sold the bag to your friend for ₱700
LU_Business Mathematics_Module 5
Discover
To understand the concept of Profit or Loss, let us first define these important terms used in business.
• Cost Price – the price that a company or store has to pay for the goods it is going
to sell
- the price that has to be spent to produce goods or services before any profit is
added
•Selling Price – the price at which the commodity is sold per unit
•Profit – money earned after the cost price is accounted for after the sale of a
commodity
Profit = selling price – cost price
selling price = Profit – cost price
cost price = selling price - Profit
•Loss – occurs when the cost of expenses exceeds the selling price
Loss = cost price – selling price
cost price = Loss – selling price
selling price = cost price - Loss
• The cost of the sales is the purchase price and other expenses incurred in buying
the products that the business has to sell including the freight-in or transportation
of the goods it buys for resale.
• Operating expenses are expenses incurred to run the business, like rental,
supplies, utilities, etc.
• Other expense includes interest expense or finance charges which financial
institutions charge firms for its service.
• The gross profit is at times referred to as gross margin. It is net sales minus cost
of sales.
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LU_Business Mathematics_Module 5
• Operating profit/loss is gross profit less operating expenses.
• Net profit/loss is the operating profit plus other income less other expenses.
• Gross sales refer to the total sales.
Examples:
1.
Selling price ₱25,000
Expenses:
Cost of sale/price ₱5,000
Operating expense ₱7,000
Net Profit ₱ 13,000
2. A man buys a sack of mango for ₱250 and sells it for ₱320. Find his profit or loss.
Solution:
Given:
Cost Price = ₱250 and Selling Price = ₱320
selling price – cost price = profit/loss
320 – 250 = 70
Profit = ₱70
Therefore, the profit is ₱70
3. A vendor bought 10 kilograms of tomatoes for ₱30 per kilogram but because of the
pandemic the vendor needs to decrease the price from ₱30 to ₱25 to sell all of his
tomatoes. Find his profit or loss.
Solution:
Given:
Cost Price = ₱30 x 10 kilograms
Selling Price = ₱25 x 10 kilograms
selling price – cost price = profit/loss
25(10) – 30(10) = 250 - 300 = -50
Loss = ₱50
Therefore, the loss is ₱50.
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LU_Business Mathematics_Module 5
Explore
Here are some enrichment activities for you to work on to master and strengthen the basic
concepts you learned from this lesson
A. FILL IN THE BLANKS. Complete the table by solving for the profit or loss.
Cost Price Selling Price Profit Loss
1. ₱ 20 ₱ 100
2. ₱ 670 ₱ 850
3. ₱ 1,500 ₱ 1,250
4. ₱ 20,000 ₱ 12,050
5. ₱ 750,000 ₱ 705,000
B. COMPLETING THE TABLE. Complete the table by solving for the total cost, net
sales of the profit/loss.
TOTAL COST NET SALES PROFIT LOSS
1. ₱ 960 ₱ 1,000
2. ₱ 3,230 ₱ 500
3. ₱ 12,400 ₱ 1,200
4. ₱ 15,000 ₱ 2,300
5. ₱ 16,720 ₱ 5,300
6. ₱ 22,215 ₱ 20,075
7. ₱ 23,085 ₱ 25,000
8. ₱ 75,640 ₱ 650
9. ₱ 35,805 ₱ 5,650
10. ₱ 12,050 ₱ 17,350
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LU_Business Mathematics_Module 5
Deepen
It’s time to apply what you have learned to solve problems in real life situations.
WORD PROBLEMS. Read and analyze each word problem carefully. Then, solve
for what is asked. Show your complete solution.
1. A washing machine was originally sold at ₱5,600 but due to modernization it is
now sold at ₱7,000. Find the profit or loss.
2. A cloth merchant bought 50 shirts for ₱250. He wants to have a 10% gain each
shirt. How much will be his gross profit?
3. A retail fruit vendor buys 60 pieces of pineapple for ₱240, and retails them at a
dozen for ₱100. Did he gain or lose in the transaction and what will be his gain or
loss?
4. Ann purchased two watches at the same price and sold one at a profit of 20% and
the other at a profit of 22.5%. If the difference between the two selling price is ₱200,
what is the cost price of each of the watches?
5. A merchant buys 30kg of rice at ₱40/kg, and another 20kg of rice at ₱30/kg. At
what price should he sell the remaining mixture to get an overall profit of 30%? And
how much will be the profit of the merchant?
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LU_Business Mathematics_Module 5
Gauge
A. ALTERNATE RESPONSE
Directions: Determine whether the statement shows a profit or loss situation. Write
P for profit and L for loss. Write your answers on the space before the number.
____ 1. When the seller got positive profit.
____ 2. When the seller got a negative profit.
____ 3. The cost of expenses is greater than the selling price.
____ 4. After New Year’s Eve, the price of the fireworks decreased.
____ 5. A flower vendor gains Php500 for selling it at Php100 per bouquet.
____ 6. Grace bought a dozen of hairclips for ₱60 then she sold it for ₱10 each.
____ 7. It is the result when the selling price is greater than the cost price.
____ 8. Due to high demand of faceshields during the pandemic, the price of the
faceshields were increased.
____ 9. To move away from bankruptcy, salon shops now lessen the haircut price
from ₱350 to ₱200 to have more costumers.
____10. Mila bought a scientific calculator at Php2,000. When a new and upgraded
model was released after two months, she sold her scientific calculator for Php1,200
to buy the new one.
B. WORD PROBLEMS.
Directions: Read and analyze each word problem carefully. Then, solve for what is
asked. Show your complete solution.
1. Marina has a small store. Last month, she purchased merchandise costing ₱75,
000 for which she paid freight of ₱68,000 after spending for various expenses totaling
₱13,000. She also paid ₱2,000 for interest on money she borrowed for her store.
a. How much was her cost of sales?
b. How much profit did she make?
2. A seller sells his product on 14% profit of the market price. If the selling price is
₱3,420 then find the market price.
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LU_Business Mathematics_Module 5
References
Printed Materials:
Norma D. Lopez-Mariano, P. (2016). Business Mathematics. Quezon City: Rex Book
Store. Inc.
Republic of the Philippines, Department of Education.(2016). Business Mathematics.
Quezon City, Philippines
Website:
https://www.hitbullseye.com/Profit-and-Loss-Examples.php
https://en.m.wikipedia.org/wiki/Income_statement
https://www.investopedia.com/terms/p/plstatement.asp
https://www.premierbusinesscapital.com/about-us/our-blog/how-to-prevent-
profit-loss-in-business
https://www.toppr.com/guides/maths/compairing-quantities/profit-and-loss/
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LU_Business Mathematics_Module 5
For inquiries or feedback, please write or call:
Department of Education – SDO La Union
Curriculum Implementation Division
Learning Resource Management Section
Flores St. Catbangen, San Fernando City La Union 2500
Telephone: (072) 607 - 8127
Telefax: (072) 205 - 0046
Email Address:
launion@deped.gov.ph
lrm.launion@deped.gov.ph
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LU_Business Mathematics_Module 5
