Republic of the Philippines

Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

LEARNING ACTIVITY SHEET IN BUSINESS MATHEMATICS

Key Concepts in Buying and Selling

Name of Learner: ______________________________________________________

Grade Level: 11____________________________________________________
Strand/Track: ABM-ACADEMIC________________________________________
Section: ______________________________________________________
Date: _______________________________________________________

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A. Background Information for Learners
The lesson is about the key concepts in buying and selling. It involves activities which

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can help the students to master the assigned competency.

B. Learning Competency/ies with code


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Differentiate mark-up from margins (ABM_BM11BS-Ih-3)
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 Describe how gross margins is used in sales (ABM_BM11BS-Ih-4)
 Compute single trade discounts and discounts series (ABM_BM11BS-Ih-5)

C. Directions/ Instructions
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After going through with this unit, you are expected to:

1. Read and follow each direction carefully.

2. Accomplish each activity for the mastery of competency.
3. Use the Learning Activity Sheets with care.
4. Always aim to get at least 80% of the total number of given items.
5. If you have any questions, contact, or see your teacher through messenger
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or text
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D. Exercises / Activities

DAY 1

D.1 INTRODUCTION

a. What I Need to Know

After going through with this unit, you are expected to:

1. differentiate mark-up from margins;

2. describe how gross margins is used in sales;
3. compute single trade discounts and discount series .

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

b. What’s New?

Activity 1

Directions: Answer the following questions.

1. What is your idea of the difference of Markup and Margin?

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___________________________________________________________________

2. How can we apply gross margin on sales?

___________________________________________________________________

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3. Do you think, single trade discount is different from discount series?
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___________________________________________________________________

D.2 DEVELOPMENT

a. What I Know?
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Activity 2: PREREQUISITE SKILLS
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Directions: Determine the rate, base, and percentage in the following situations:

1. Dan borrows PhP 20 000 for 2 years. The interest paid after a year is 1,000 at 5%
annual interest.
BASE: ________ RATE: ________ PERCENTAGE: ________
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2. In a shipment of 250 parts, 50 of the parts were defective which is 20% of the entire
shipment.
BASE: ________ RATE: ________ PERCENTAGE: ________
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3. John earned PhP 500 interest from savings account paying 2% interest. He placed Php
25 000 in the account.
BASE: ________ RATE: ________ PERCENTAGE: ________

4. In department store, Kim bought a pair of shoes at PhP 1 800. He saw that the original
price was PhP 2 000 with a 10% discount.
BASE: ________ RATE: ________ PERCENTAGE: ________

5. Last week, the price of a jersey was PhP 500. But after a week the price increased by
10% with additional PhP 50 to the original price.
BASE: ________ RATE: ________ PERCENTAGE: ________

MY SCORE:
___________
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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

DAY 2 to DAY 3

b. What’s In

Activity 3

Directions: Complete the following table:

COST SELLING MARK UP

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MU cos t MU sp
PRICE % %

PhP 25 PhP 30

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PhP 48 PhP 52

PhP 350 PhP 500

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PhP 280 PhP 320
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PhP 390 PhP 410
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MY SCORE:
____________
Activity 4: Problem Solving

Directions: Solve the following problems.

1. The cost of a new pair of sunglasses is PhP 4 500. The selling price is PhP 8 000.
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What is the rate of markup based on cost?

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2. A new pair of shoes costs PhP 5 500. The rate of markup based on selling price is
15%. What are the selling price and the markup?

3. A bookstore priced a textbook at PhP 650 using a markup of 40% of cost. What was
the original cost of the book? What percent of selling price is the markup?

MY SCORE:
____________

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Activity 5

Directions: Complete the following tables.

TABLE I

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ORIGINAL PRICE TRADE DISCOUNT DISCOUNT RATE DISCOUNTED
PRICE

PhP 6 500 PhP 1 200

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PhP 500
AN 10%

PhP 2 100 PhP 5 600

PhP 27 800 35%

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TABLE II

LIST PRICE SERIES DISCOUNT NIP NET INVOICE DISCOUNT

RATE PRICE

PhP 1 500 5% and 3%

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PhP 2 000 8% and 2%

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PhP 3 400 10%, 5%, and 2%

PhP 5 000 15%, 10%, and 3%

PhP 8 200 20%, 12%, and 8%

MY SCORE:
____________

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

c. What Is It

Difference between Markup and Margin

Margin (also known as gross margin) is sales minus the cost of goods sold.
Gross margin is easier to arrive at and is, therefore, easier to use as well. For example,

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if a profit sells for PhP 200.00 and costs PhP 140.00 to manufacture, its gross margin
is PhP 60.00. Stated as a percent, the margin is 30% (calculated as the margin divided
by sales). This is the markup based on sales or selling price.
Markup is the amount by which the cost of a product is increased in order to
derive the selling price. To use the preceding example, a markup of PhP 60.00 to the

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PhP 140.00 cost yields the PhP 200.00 selling price. Stated as a percentage, the
markup percentage is 42.86% (calculated as the markup amount divided by the
product costs). This is based on cost.
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Therefore, the margin is addressing the profit as it relates to selling price;
whereas, the markup addresses the profit as it relates to cost price.

MARGIN Markup Based on

(Markup Based on Cost
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Sales)
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COST PhP 140 70% 100%

MARKUP PhP 60 30% 42.86%

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SELLING PRICE PhP 200 100% 142.86%

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Markup Based on Selling Price (Margin)

In most instances, however, markup is expressed as a percent of selling price.
In this case, the selling price is the base, hence, 100%.
Selling Price ………………………………………..PhP 450 (100%)
Cost………………………………………………….PhP 300 (66.67%)
Markup………………………………………………PhP 150 (33.33%)
You will notice that the markup, if stated in terms of selling price as the base,
is lower (33.33%) as against markup based on cost (50%) although our markup in
pesos remains the same (PhP 150.00). This is the primary reason why traders usually
express their markup based on selling price to make it appear that they have a lower
markup or gross profit.

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

TRADE DISCOUNTS
To entice buyers to buy, seller usually offer trade discount. It could be a single
trade discount of, say 20% or a series of discounts like 10%, 5%, and 5%. It is generally
wholesalers who offer trade discount, but there are also some retailers who offer them.
Single Trade Discount

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Computing for discounts makes use of our basic percentage formula P = BR
where the base is the list price, the rate is the discount rate, and the percentage is the
discount. As such: P = BR, (Discount = List Price x Discount Rate)
Example: Compute the discount for an item with a list price of PhP 1 250.00 subject to
a 15% discount. What is its net invoice price?

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Given: List Price = PhP 1 250.00
Discount Rate = 15%
Find: a. Discount
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b. Net Invoice Price
Solutions:
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a. Discount = List Price x Discount Rate
= PhP 1 250.00 x 15%
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= PhP 187.50
b. Net Invoice Price = List Price - Discount
= PhP 1 250.00 - PhP 187.50
= PhP 1 062.50
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Series of Discounts
In certain instances, a seller grants additional discounts other than the discount
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ordinarily given by him or her. For instance, aside from the regular 10% discount, a
seller may grant a special additional discount of 5%. The series of discounts is,
therefore, 10% and 5%. This is not, however, equivalent to 15% as we shall see later.
Example: Compute for the discount and the net invoice price if an item listed at PhP 1
250.00 is given a 10% and 5% discount.
Given: List Price = PhP 1 250.00
Discount Rates = 10% and 5%
Find: a. Discount
b. Net Invoice Price

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Solution:
Method 1
We first multiply the list price by the first discount rate. To get the second
discount, multiply the difference between the list price and the first discount, and the
second discount rate. We then deduct the second discount from the said difference to
get the net invoice price.

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List Price ………………………………………………. PhP 1 250.00
Less 10% (PhP 1 250 x 10%) ………………………. 125.00
Difference ……………………………………………… PhP 1 125.00
Less 5% (PhP 1 125 x 5%) ………………………….. 56.25

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Net Invoice Price ……………………………………… PhP 1 068.75
Our total discount is equal to the first discount plus the second discount:
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Total Discount = PhP 125.00 + PhP 56.25
= PhP 181.25
Method 2
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(1) Deduct the first discount rate from 100% and multiply the list price by the rate
obtained.
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100% - 10% = 90%

Multiply the list price by the first balance rate obtained in step (1).
List Price ……………………………………………. PhP 1 250.00
x 90%
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First Balance ……………………………………….. PhP 1 125.00

(2) Deduct the second discount rate from 100% and multiply the first balance obtained
in (1) by the second balance rate obtained.
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100% - 5% = 95%
First Balance………………………………………… PhP 1 125.00
Second Balance Rate x 95%
Net Invoice Price …………………………………… PhP 1 068.75
This method involves a process similar to the use of the net invoice price rate
(NIP rate) applied to the list price to get the net invoice price. Our discount is still equal
to the list price less the net invoice price.

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Discount = List Price - Net Invoice Price

= PhP 1 250.00 - PhP 1 068.75
= PhP 181.25
We obtained the same result as we got in Method 1.

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Converting Markup Based on Cost to Markup Based on Selling Price and Vice Versa

( MU cost )
If we know the markup based on cost , we compute for markup based on selling
( MU sp )
price by dividing the markup rate by the selling price rate:

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Rate Based on Cost
AN Rate Based on Selling Price
Selling Price 150% 100%
Cost 100% _________
Markup 50% _________
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MU cos t 50% 1
MU sp = = =
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SPrate 150% 3
Hence, = 33.33%
To get the MU based on selling price, set the selling rate as the denominator of MU based on
cost. Therefore, the cost rate = 100% - 33.33% = 66.67%
As such,
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Rate Based on Cost Rate Based on Selling Price

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Selling Price 150% 100%

Cost 100% 66.67%

Markup 50% 33.33%

MU sp MU cos t MU sp
In the same manner, if we know the , we can get the by dividing the by
the cost rate:

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

1
33.33% 3 1
= =
66.67% 2 2
MU sp 3
MU cos t = = = 50%
Cost rate

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To get the MU based on cost, set the cost rate as the denominator of MU based on selling
price.

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D.3 ENGAGEMENT
Activity 6
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Directions: Complete the following table:

Selling Price Cost MARK UP MU cos t MU sp

% %
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PhP 480 PhP 120
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PhP 900 PhP 200

PhP 300 PhP 120

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PhP 600 PhP 230

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PhP 400 30%

MY SCORE:
____________

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Activity 7: PROBLEM SOLVING

Directions. Solve the following problems.

1. An appliance center sells washing machine at a markup of 15% of the selling price.
The store’s markup on a certain model is PhP 300.
a. What is the selling price of the washing machine?

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b. What is the original cost of the washing machine?
c. What is the rate of markup based on the cost?

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2. A sungca board is priced PhP 999.75 at a certain toy store. If they used a markup
of 35% of the cost, what is the markup as a percent of selling price?
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3. Jessica wants to sell the banana cake she baked. She had a total expenses of PhP
120, and 35% of it went to baking expenses. How much should Jessica sell the
cake with a goal of earning a profit of 30% of the cost?
BA

MY SCORE:
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____________
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Activity 8: PROBLEM SOLVING

Directions: Solve the following problems.

1. Choose which of the following stores offers a better price for a car of the same brand
and model listed at PhP 385 000.
a. Store A with discount at 35%
b. Store B with discount at 30% and 8%
c. Store C with discount at 30%, 5%, and 2%
Answer: ________ Why?

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

2. Choose which of the following stores offers a better price for a sewing machine of
the same brand and model:
a. Store A: LP = PhP 5 380.00
Discount = 25%

b. Store B: LP = PhP 5 250.00

Discount = 20% and 5%

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Answer: ________ Why?

3. An item listed at PhP 6 245.00 was sold for PhP 5 495.60. Find:
a. Discount
b. Discount rate
c. NIP rate

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4. An article was given an 18% discount amounting to PhP 756.00. Find:
a. List Price
b. NIP rate
c. Net Invoice
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5. A food processor was sold for a net price of PhP 5 625.00 at the Western Marketing.
If the discount granted was 15%, how much is the list price?

MY SCORE:
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a. What is more? _____________
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Activity 9
Directions. Complete the following table:

COST SELLING MARK UP MU cos t MU sp

PRICE % %
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PhP 550 PhP 750

PhP 600 PhP 900

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PhP 125 PhP 350

PhP 250 PhP 270

PhP 900 PhP 1 200

MY SCORE:

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

b. What I can Do?

Activity 10:PROBLEM SOLVING

Directions: Solve the following problems.

1. How much is the selling price of a double-burner gas stove listed at PhP 2 650 if a
discount of 15% is given to the customer?

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2. A house and lot with original price of PhP 2,300,000 was sold at a discounted price
of PhP 2 150 000. What was the discount rate given to the buyer?

3. A rice cooker, after a 20% discount, was sold to a customer at a price of PhP 790.
what is the original price of the rice cooker?

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4. During a clearance sale, a polo shirt originally at PhP 1 700 is reduced to PhP 800.
What percent of the original price is the discount?
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5. The price of music player originally sold at PhP 3 500 is reduced to PhP 2 800. What
is the discount rate?

MY SCORE:
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___________
d. What other enrichment activities can I engage in?
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Activity 11
Directions. Complete the following table:

COST SELLING MARK UP MU cos t MU sp

PRICE % %
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PhP 300 PhP 365

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PhP 700 PhP 845

PhP 600 PhP 120

PhP 499 PhP 300

PhP 120 PhP 100

MY SCORE:

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

D.4 ASSIMILATION

a. What I have Learned?

Activity 12

Directions: Answer the following questions.

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1. What is the difference between Markup and Margin?
_________________________________________________
2. How is the gross margin computed?
__________________________________________________
3. How is the single trade discount and discount series computed?

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__________________________________________________

MY SCORE:
AN _____________

DAY 4

b. Assessment / What I can show

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Activity 13
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I. Directions: Complete the following table:

COST SELLING MARK UP MU cos t MU sp

PRICE % %
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PhP 15 PhP 25
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PhP 50 PhP 65

PhP 100 PhP 120

PhP 240 PhP 280

PhP 300 PhP 380

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

II. DIRECTIONS: Solve the following problems

1. Carmen does buy and sell. She bought a perfume for PhP 450.00. She sold it for PhP
600.00.
a. How much was her margin? What was the rate of her margin?
b. What was the markup based on cost?

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c. How much profit did she earn?

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2. Tessie sell jewelry. She had a piece that costs her PhP 12 800.00, which she sold for
PhP 16 000.00. The only expense for her was her transaction expenses totalling PhP
560.00.
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a. How much was her margin? What was the rate of her margin?
b. What was the markup based on cost?
c. How much profit did she earn?
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3. Mary saved a total of PhP 1 200 after a 15% discount was given to all her purchases.
How much was her total purchases?
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4. An air conditioning unit, listed at PhP 36 000 with a discount of PhP 7,200, is offered to
a customer. Determine the discount rate.
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5. Family Saver’s Supermarket places a PhP 3 500 worth of order for assorted brands of
chocolate. The chocolate wholesaler gave a 25% discount. How much is the trade
discount?

MY SCORE:
_____________

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

E. Guide Questions
Activity 14: “Question and Answer”
Directions: Respond to the following guide questions.

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1. What is the difference between markup and margin ?
__________________________________________________________

2. How did you use gross margins in sales?

__________________________________________________________

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3. What are the steps in computing single trade discounts and discount series?
__________________________________________________________
AN MY SCORE:

F. Rubrics
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Short Answer
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G. Reflection
Learners will write on their notebooks or journals their insights about the lesson.
I understand that_____________________.
I realized that _______________________.

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

H. References

Books

Norma D. Lopez-Mariano, Business Mathematics, 2016.

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Brian Roy C. Lopez, Leah C. Martin-Lundag and Kenneth Adrian P. Dagal, Business
Mathematics, 2016

Electronic Sources

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https://www.youtube.com/watch?v=4PvUFaeHdIg

https://www.youtube.com/watch?v=HclZ2M0Owko
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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

I. Answer Key

Activity 2: PREREQUISITE SKILLS

Directions: Determine the rate, base, and percentage in the following situations:

1. Dan borrows PhP 20 000 for 2 years. The interest paid after a year is 1,000 at 5%

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annual interest.
BASE: PhP 20 000 RATE:5% PERCENTAGE: 1,000

2. In a shipment of 250 parts, 50 of the parts were defective which is 20% of the entire
shipment.
BASE: 250 parts RATE: 20% PERCENTAGE: 50

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3. John earned PhP 500 interest from savings account paying 2% interest. He placed PhP
25 000 in the account.
BASE: PhP 25 000
AN RATE: 2% PERCENTAGE: PhP 500

4. In department store, Kim bought a pair of shoes at PhP 1 800. He saw that the original
price was PhP 2 000 with a 10% discount.
BASE: PhP 2 000 RATE: 10% PERCENTAGE: PhP 1 800
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5. Last week, the price of a jersey was PhP 500. But after a week the price increased by
10% with additional PhP 50 to the original price.
BA

BASE: PhP 500 RATE: 10% PERCENTAGE: PhP 50

O
SD

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