SAINT JOSEPH SCHOOL

Naga City

GLOBAL SENIOR HIGH SCHOOL

2ND SEMESTER

This copy of the learning module belongs to:

________________________________________________________________

Grade 11 - __________________
THE SJS LEARNING MODULE
The SJS Learning Module has the following parts and corresponding icons:

START UP
This icon will give you an idea of what previously learned skills you will need for this
module or an idea of what you are about to learn. There are activities you need to do to
recall/review those skills or to prepare you for the new learning.

WORK IT OUT
This icon contains the concepts you need to learn, including the examples illustrating
the concepts. The examples are in the form of questions with solutions for you to understand
better the concept and to be guided on how to properly apply the concept learned.

INTEGRATE
This icon takes care of value integration. This highlights what values you will acquire or
develop and some real-life applications of the concept to deepen your learning by relating
concepts to experiences.

TRY THESE!
This icon prompts you to assess how much you have learned by applying the concepts
learned. This is the same as the practice exercises done inside the classroom. These activities
can be done online, thru the LMS, or offline in your notebook. This was designed to help you
study on your own, and as such, the Answer Key is provided on the last page of the module.

CHALLENGE YOURSELF
This icon will provide you with challenge questions to stimulate your higher-order
thinking skills. Some of the challenge questions or activities are brain exercises to further
deepen your understanding of the concept.

HIGH FIVE!
This icon is a celebration of your success in the module. The questions in this part ask
you to provide what you have learned throughout the discussions. You may be asked also
to reflect or assess how well you performed.

❖❖
This learning module was collaboratively developed and reviewed by the
teacher, the Subject Area Coordinator, and the Academic Affairs Officer. We
encourage the learner, the parents, and/or the guardian to give their feedback,
comments, and recommendations directly to the school.
❖❖

All rights reserved. No part of this material may be reproduced or transmitted in any form or by any means -
electronic or mechanical including photocopying – without written permission from Saint Joseph School. © 2020

BUSINESS MATH | 2
 TABLE OF CONTENTS

Introduction 4

Learning Standards 5

Pre-Assessment 6

Lesson 1: FRACTIONS, DECIMALS, & PERCENTAGES 9

Start Up 9
Work It Out 10
Converting Fraction to Decimal and Percent 10
Converting Decimal to Fraction and Percent 11
Converting Percent to Fraction and Decimal 11
Problem Solving Involving Fractions, Decimals, & Percentages 12
Integrate 14
Try These 14
Challenge Yourself 15
High Five 16

Lesson 2: RATIO AND PROPORTION 17

Start Up 17
Work It Out 18
Direct Proportion 18
Inverse Proportion 19
Partitive Proportion 20
Try These 22
Challenge Yourself 23
High Five 24

Lesson 2: BUYING AND SELLING 25

Start Up 25
Work It Out 25
Markup 25
Conversion of Markup Rates 26
Problem Solving Involving Markups 27
Mark Down 28
Problem Solving Involving Mark Down 29
Single Trade Discount 30
Discount Series 30
Try These 32
Challenge Yourself 33
High Five 33

Post-Assessment 35

References 38

Answer Keys 38

Worksheet 1: Fractions, Decimals, Percentages, and Ratio and Proportion 40

Worksheet 2: Buying and Selling 42

BUSINESS MATH | 3
INTRODUCTION
Businesses are the heart of the
world’s economy. It ripples
opportunity after opportunity for the
society. According to Harold
Geneen, “In the business world,
everyone is paid in two coins: cash
and experience. Take the
experience first; the cash will come
later.”. And so, we should never take
all the experiences, good or bad, for
granted because these will be the
path that will surely pave the way to
triumph. These experiences could be
of different form. One of which is your
preparation to success through this
learning module.
Business Mathematics is a subject that will guarantee you to be equipped with
all the fundamental and necessary skills that a victorious successful businessman,
manager, or accountant should have. It will cover topics that are essential in putting
or managing a business. It will also give you a simulation of the complex world of
commerce.
In this module, we will come into contact with some of the familiar topics like
fractions, percentages, decimals, ration, and proportion. Unlike the kind of
discussions that you probably had way back in elementary, we will approach these
topics on a different perspective. We are not bound to focus on the surface level of
these concepts, we are expected to dig deeper instead. All these topics will always
revolve about its uses in the business world, on a corporate person’s point-of-view.
Moreover, we will also put our heads together about the concept of buying
and selling. This topic involves analyzing the markup and margin rate of a specific
product or service that will aid to increasing our success rates in the future. We will
also take a look on how to sell our products on a price that will generate more profit
but is also fair and just for the consumers. Also, we will have a glimpse on how to work
on discounts that will benefit us as a consumer and business owner at the same time.
All of the expectations set by this learning module are just the tip of the iceberg
of what the realm of business looks like. However, it is more than enough as a starter
pack as you begin climbing to the peak of success. The slope is steep, but the
experiences that you will get in this course will help you clench on even more. Just
be consistent and always keep learning. Soon, all these learning escapades will bear
auspicious outcomes.

BUSINESS MATH | 4
LEARNING STANDARDS FOR THE 2ND SEMESTER:
After going through this module, you should be able to demonstrate
understanding of key concepts of functions and rational functions, and accurately
construct mathematical models to solve real-life problems involving functions.
Furthermore, you should develop a stronger mathematical knowledge and skills, and
appreciate the development of mathematical concepts as tools in solving real-life
situations.
To achieve those, the lessons in this module will help you learn to:
Lesson 1:
1. express fractions to decimal and percent forms,
2. express decimals to fractions and percent forms,
3. express percent to fractions and decimal forms,
4. give real-life situations to illustrate fractions, decimals, and percent; and
5. solve problems involving fractions, decimals, and percent.

Lesson 2:
1. identify the different kinds of proportions and write examples of real-life
situations for each; and
2. solve problems involving direct, inverse, and partitive proportion.

Lesson 3:
1. differentiate mark-on, markup, and markdown,
2. obtain mark-on, markup, and markdown given a price of a product,
3. differentiate markup from margins,
4. describe how gross margins are used in sales, and
5. compute single trade discounts and discount series.

BUSINESS MATH | 5
 PRE-ASSESSMENT
Instructions: Choose the letter that corresponds to your answer, then write on the
space provided before the number. If your answer is not included in the choices,
write E.
_____ 1. What is 23.6 in fraction form?
18 118
a. c.
5 5
1 23
b. 23 6 d. 6

_____ 2. What is 14.5% in decimal form?

a. 14.5 c. 0.145

b. 1.45 d. 0.0145
1
_____ 3. What is 400 in percent form?

a. 0.025% c. 2.5%
b. 0.25% d. 25%
_____ 4. Wanda earns 3% commission for every Php 500,000 real estate sales aside
from her Php 30,000 monthly salary. How much earnings will she have in a
month after selling properties worth Php 10,300,000?
a. 𝑃ℎ𝑝 339,000 c. 𝑃ℎ𝑝 300,000
b. 𝑃ℎ𝑝 330,000 d. 𝑃ℎ𝑝 270,000
1 1
_____ 5. Steve allots of his monthly salary for food and household expenses, for
3 4
leisure and personal expenses, and the rest is equally divided for his savings
and investments. If he has a monthly salary of Php 40,000, how much money
is allotted for savings?
a. 𝑃ℎ𝑝 13,333.33 c. 𝑃ℎ𝑝 8,333.33
b. 𝑃ℎ𝑝 16,666.67 d. 𝑃ℎ𝑝 4,666.67

_____ 6. A roll of 45-inch-long ribbon has to be divided into strips with a length of 1.2
inches. How many strips of can be made out of the given roll of ribbon?
a. 36 𝑠𝑡𝑟𝑖𝑝𝑠 c. 38 𝑠𝑡𝑟𝑖𝑝𝑠
b. 37 𝑠𝑡𝑟𝑖𝑝𝑠 d. 39 𝑠𝑡𝑟𝑖𝑝𝑠
_____ 7. If x is directly proportional to y, and x = 18 when y = 6. What is the value of
y when x is 30?
a. 5 c. 15
b. 10 d. 20
_____ 8. If y is inversely proportional to x, and y = 30 when x = 2. What is the value of
y when x = 4?
a. 5 c. 15
b. 10 d. 20

BUSINESS MATH | 6
_____ 9. A quantity is in a partitive proportion of 3:5:2. What is the value of the
largest part if the total value of the quantity is 80,000?
a. 8,000 c. 40,000
b.16,000 d. 60,000

_____ 10. If 5 pieces of apples cost Php 110, how much will 13 pieces of apples
cost?
a. 𝑃ℎ𝑝 22 c. 𝑃ℎ𝑝 240
b. 𝑃ℎ𝑝 65 d. 𝑃ℎ𝑝 286
_____ 11. If 4 persons can finish a job in 7 days, how long will it take for 2 persons to
finish the same job?
a. 3.5 𝑑𝑎𝑦𝑠 c. 11.5 𝑑𝑎𝑦𝑠
b. 5 𝑑𝑎𝑦𝑠 d. 14 𝑑𝑎𝑦𝑠
_____ 12. The ratio of boys to girls in a class of 35 students is 3:4. How many girls are
there in the class?
a. 7 c. 28
b. 21 d. 35

_____ 13. If the selling price of a product is Php 500 from its original price Php 350,
then what is the approximate selling price of the product based on the
retail price?
a. 𝑃ℎ𝑝 816.61 c. 𝑃ℎ𝑝 712.91
b. 𝑃ℎ𝑝 759.63 d. 𝑃ℎ𝑝 612.53

_____ 14. If the selling price of a product is Php 500 from its original price Php 350,
then what is the margin rate or the markup rate based on the selling price?
a. 20% c. 40%
b. 30% d. 50%
_____ 15. What is the margin rate of the product if the markup rate is 15%?
a. 12% c. 14%
b. 13% d. 15%

_____ 16. What is the markup rate of the product if the margin rate is 42%?
a. 72% c. 74%
b. 73% d. 75%
For items 17-18, please refer to the given problem below:
A spa service costs Php600 per customer because of all the needed materials
and salary of the employee. If you want to gain a 40% markup for every spa service
per customer, what will be the service charge based on its
_____ 17. cost price?
a. 𝑃ℎ𝑝 240 c. 𝑃ℎ𝑝 640

b. 𝑃ℎ𝑝 480 d. 𝑃ℎ𝑝 840

BUSINESS MATH | 7
_____ 18. retail/service price?
a. 𝑃ℎ𝑝 840 c. 𝑃ℎ𝑝 1000
b. 𝑃ℎ𝑝 960 d. 𝑝ℎ𝑝 1500
_____ 19. Peter was able to sell his product for 900. How much was the original
price of the product if he was able to add 80% markup?
a. 𝑃ℎ𝑝 400 c. 𝑃ℎ𝑝 720
b. 𝑃ℎ𝑝 500 d. 𝑃ℎ𝑝 750
_____ 20. A summer sale offers 10% on all items. Aside from that, you can also avail
of 5% discount when you have a loyalty card and additional 4% when you
purchase a minimum of Php 10,000. How much would Tony have to pay if he
is a loyalty card holder and purchased a total Php 15,000?
a. 𝑃ℎ𝑝 12,150 c. 𝑃ℎ𝑝 12, 450
b. 𝑃ℎ𝑝 12,312 d. 𝑃ℎ𝑝 12,672

BUSINESS MATH | 8
 LESSON FRACTIONS, DECIMALS, AND
1 PERCENTAGES

LEARNING TARGETS KEY QUESTION

At the end of this lesson, you will be able to:
1. express fractions to decimal and percent forms, How are the concepts of
2. express decimals to fractions and percent forms, fractions, decimals, and
3. express percent to fractions and decimal forms, percent being used in
4. give real-life situations to illustrate fractions, decimals, and business-related
percent; and situations?
5. solve problems involving fractions, decimals, and percent.

START UP
During your elementary and early high school years, the concept of fractions, decimals, and
percent were already introduced to you. You were taught about the basic applications of fractions,
decimals, and percent in our everyday life like baking, cooking, shopping, and a lot more. Who would
have thought that you will still meet these topics now that you a senior high school student? Is there
anything else more than what you already know in your earlier years?

When shopping online, we are always

delighted when there are big sale and discount
offers. We tend to buy a lot of items knowing
that we can save more money than we usually
spend. We are wise enough to know whether we
need to buy everything that is listed in our carts
or just part of it. Our decision depends on the
amount of money that we can save according to
the percentage of the offered discount. Admit it
or not, we are also applying our basic
knowledge of fractions, decimals, and percent
when paying online since not all the time, the
prices are not of exact, whole number amount –
most of them come in fractions/decimals.

Now that you are already a grade 11 ABM student, we will explore more applications of fractions,
decimals, and percent because these concepts are more than just shopping discounts and cooking. In this
lesson, we will focus on how these topics will help you become better accounting officers, business
owners, or managers.

Activity 1: THE ONLINE SELLER

Let us say you are an online business owner selling affordable, yet quality face masks and you can
buy a box of face masks from your supplier for only 40 pesos.

1. If you have a capital of Php20,000 to start the business, how much will you sell a box of facemask? How
much money will you have after selling the masks at that price?

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BUSINESS MATH | 9
2. What is the minimum number of boxes that you should sell for you to get your capital back?

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3. What are your techniques or considerations in giving a new price to the items that you are selling?

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4. Let us say you decided to sell ¼ of your purchased face masks by adding 40% to its original price, then
sell the remaining boxes of face masks by adding another 50% to its new price. How much money do you
have after selling all the face masks? Explain your answer.

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WORK IT OUT
𝑎
Fraction is a part of a whole written in the form 𝑏 . The variable 𝑎 above the fraction bar is called
the numerator. It tells how many parts of the whole are being considered. On the other hand, the
variable 𝑏 below the fraction bar is called the denominator. It indicates how many equal parts a whole
is divided. The numerator and denominator are called the terms of the fraction. The three types of
fractions are proper fractions, improper fractions, and mixed fractions.

On the other hand, a decimal number, or simply a decimal, is a number in base 10. It can be used
to express any value between two consecutive whole numbers. It can be classified as terminating,
nonterminating, and repeating, and nonterminating and nonrepeating decimals. Terminating decimals
are numbers that contain a finite number of digits after the decimal point like 0.5, 2.75, 3.0001, and a lot
more. Nonterminating repeating decimals are numbers that contain an infinite number of repeating
digits after the decimal point like 0.33333… or (0. 3̅), 2.0909… or (2. ̅09 ̅̅̅), etc. Nonterminating
nonrepeating decimals are numbers that contain an infinite number of different numbers after the
decimal point like π or (3.14159...), √2 or (1.41421…), and many more.

Lastly, percentage is a number or ratio that represents a fraction of a hundred. The symbol %
read as “percent” means “per hundred”.

The above-stated concepts are just the basic terms that we must understand before getting a
deeper understanding of the topic. All of them are of equal importance to becoming an accountant,
business owners, and managers.

To begin with, let us try to convert fractions to decimals and percent, decimals to fractions and
percent, and percent to fractions and decimals.

1. CONVERTING FRACTIONS TO DECIMALS AND PERCENT

a. To convert fractions to decimals, divide its numerator by its denominator.

b. To convert fractions to percent, divide its numerator by its denominator, then move the
decimal point two places to the right and affix the percent symbol.

BUSINESS MATH | 10
Illustrative Example 1 _________________________________________________________________________________
7
Convert to decimal and percent.
16

Solution:

To convert the given fraction to decimal, we must divide the numerator (7) by the denominator
(16). Therefore, we can write 7 ÷ 16, which is equal to 0.4375.

To convert the given fraction to percent, we have to divide the numerator by the denominator
first before moving the decimal point two places to the right. Since the quotient of 7 and 16 is 0.4375, we
7
can conclude that the percent form of is 43.75%.
16

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2. CONVERTING DECIMALS TO PERCENT AND FRACTIONS

a. To convert decimals to percent, move the decimal point two places to the right and affix
the percent symbol.

b. To convert decimals to fractions, consider the place value of the rightmost digit in the
decimal and use it to determine the denominator of the required fraction, then reduce the
resulting fraction in its lowest terms whenever possible.
Illustrative Example 2 _________________________________________________________________________________
Convert 0.652 to percent and fraction.

Solution:

To convert 0.652 to percent, we just have to move the decimal point two places to the right.
Therefore, the percent form of 0.652 is 65.2%.

To convert 0.652 to fraction, we have to determine the place of the last digit first. In this case, the
652
place value of 2 is thousandths. So, the denominator of our fraction is 1000 which will give us 1000. Since
𝟏𝟔𝟑
this fraction can still be reduced to the lowest terms, our final fraction form is 𝟐𝟓𝟎.

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Illustrative Example 3 _________________________________________________________________________________

Convert 1.64 to percent and fraction.

Solution:

To convert 1.64 to percent, we just have to move the decimal point two places to the right.
Therefore, the percent form of 1.64 is 164%.

To convert 1.64 to fraction, we have to determine the place of the last digit first. In this case, the
164
place value of 4 is hundredths. So, the denominator of our fraction is 100 which will give us 100. Since this
𝟒𝟏
fraction can still be reduced to the lowest terms, our final fraction form is 𝟐𝟓.

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3. CONVERTING PERCENT TO DECIMALS AND FRACTIONS

a. To convert percent to decimals, we remove the percent symbol and move the decimal
point two places to the left. If the given percent is a fraction, we first convert the fraction
to its decimal equivalent before moving the decimal point two places to the left.

b. To convert percent to fractions, we first remove the percent symbol. If the given percent
is a whole number, divide it by 100. On the other hand, if the given percent is in decimal,
move the decimal point two places to the left, and the equivalent decimal is then
converted to its equivalent fraction.
BUSINESS MATH | 11
Illustrative Example 4 _________________________________________________________________________________
Convert 65% to decimal and fraction.

Solution:

To convert 65% to decimal, we have to remove the percent sign first before moving the decimal
point two places to the left. Therefore, the decimal form of 65% is 0.65.

To convert 65% to fraction, we have to remove the percent sign first. After that, you will notice
that it will become a whole number, so we can say that the denominator of our fraction is 100. Therefore,
65 𝟏𝟑
the fraction form of 65% is and its simplified form is .
100 𝟐𝟎

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Illustrative Example 5 _________________________________________________________________________________

4
Convert 10 5 % to decimal and fraction.

Solution:
4
To convert 10 5 % to decimal, we have to remove the percent sign first then convert the fraction
4
to decimal and combine it to the whole number. Initially, 5 is equivalent to 0.8 but we have to combine it
to the whole number so, we can write it as 10.8. To write the final decimal form, we have to move the
decimal point two places to the left, and that will give us 0.108.

Now that we already know the decimal form, we have to consider the place value of the last digit,
108
which is thousandths. Therefore, the denominator of our fraction is 1000. We now have 1000, but it can
4 𝟐𝟕
still be simplified, so the final fraction form of 10 5 % is 𝟐𝟓𝟎.

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4. PROBLEM-SOLVING INVOLVING FRACTIONS, DECIMALS, AND PERCENTAGE

In solving problems fractions, decimals, and percentage, we must consider the following:

a. What are the given in the problem?

b. Is there a need to convert from one form to another?
c. What operation/s will be used to answer the problem?

Illustrative Example 6 _________________________________________________________________________________

1
Suppose you previously owned 8 of the shares of a company. After working hard to gain profit,
1
you already own 5 of the shares. By what percent did your share increase?

Solution:
1 1
In the problem, there are two fractions involved, and . We are also asked to give the rate of
8 5
increase in shares in percent, therefore we have to convert the fractions to percent.

To convert the given fractions to percent, we must divide the numerators by their respective
1 1
denominators, then move the decimal point to places to the right. If the decimal form of 8 and 5 are 0.125
1 1
and 0.2 respectively, then the percent form of 8 is 12.5% and 20% for 5.

Now that we have the fractions converted to percent, we can just subtract the two percentages
to answer the problem. Therefore, we can say that there is an increase of 7.5% in your company
shares.

BUSINESS MATH | 12
Illustrative Example 7 _________________________________________________________________________________
Suppose you borrow Php70,000 from a lending company that charges an additional 4%. How
much should you pay back to settle the loan?

Solution:

It is stated in the problem that we have to add 4% to your borrowed amount, which is Php70,000.
Meaning, we must get the 4% of Php70,000 first by multiplying 0.04 and 70,000. So we can write

70,000 × 0.04 = 2,800

But we are not done yet because 2,800 is just 4% of 70,000. Remember that we are asked about
the amount you should pay back to settle the account. So, to answer the problem we have to add 2,800
and 70,000.

In conclusion, you should pay Php72,800 to settle your loan.

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If you want to improve your knowledge about fractions, decimals, and percent, you can visit the
Math Link below.

MATH LINKS
• https://www.khanacademy.org/math/cc-seventh-grade-math/cc-7th-fractions-
decimals
• https://math.libretexts.org/Courses/De_Anza_College/Pre-
Statistics/1%3A_Decimals_Fractions_and_Percents/1.2%3A_Converting_between_
Fractions_-_Decimals_and_Percents

REMEMBER!

CONVERTING FRACTIONS, DECIMALS, AND PERCENT

a. To convert fractions to decimals, divide its numerator by its denominator.
b. To convert fractions to percent, divide its numerator by its denominator, then move the
decimal point two places to the right and affix the percent symbol.
c. To convert decimals to percent, move the decimal point two places to the right and affix the
percent symbol.
d. To convert decimals to fractions, consider the place value of the rightmost digit in the decimal
and use it to determine the denominator of the required fraction, then reduce the resulting
fraction in its lowest terms whenever possible.
e. To convert percent to decimals, we remove the percent symbol and move the decimal point
two places to the left. If the given percent is a fraction, we first convert the fraction to its decimal
equivalent before moving the decimal point two places to the left.
f. To convert percent to fractions, we first remove the percent symbol. If the given percent is a
whole number, divide it by 100. On the other hand, if the given percent is in decimal, move the
decimal point two places to the left, and the equivalent decimal is then converted to its
equivalent fraction.

BUSINESS MATH | 13
 INTEGRATE

Now that we are done discussing our topics about fractions, decimals, and percent, I know you
have a lot of wonders in mind. A part of you would think where and how will it even cross your life after
being outside the gates of our school. As much as we want to escape from fractions, decimals, and percent,
we can never hide from the real-world – these topics will always be a part of us.

Fractions, decimals, and percent are being used to give a more specific quantity of whatever we
are dealing with, may it be in business or other fields. In the business world, it represents the exact
revenues and profits of a company which is useful in telling whether there is an increase or loss based
on the desired business target. It is also imperative in accounting and budget allocation. A single change
in decimal can greatly affect the company’s financial stability when handled incorrectly.

In the field of medicine, our fractions, decimal, and percent can save lives. Imagine a situation
where you are a surgeon who is about to cut an infected part inside a man’s body. If you were told that
1
the length of the infected area is 3 4 centimeters, is cutting 3 cm part only a good decision for your patient?

The given examples above are just a few of many encounters in real life where you can find the
concept of fractions, decimals, and percent a lifesaver. Now, what do you think will the world be without
fractions, decimals, and percent? Share your thoughts in the box below.

TRY THESE!
A. Schoology Activities.
B. In your notebook, do the following:
a. Complete the table below by converting the given values to their equivalent fractions, decimals,
or percent.
FRACTIONS DECIMALS PERCENT
9
16
0.1701
72.15%

9.002
13
2
50
0.0048
9
15 %
20

BUSINESS MATH | 14
 b. Solve the following problems involving fractions, decimals, and percentages.
3
1. Mercy ordered 5.2 square meters of floral curtains for her bedroom and 3 4 square meters of
plain curtains for the living room during the 12.12 Lazada sale. If each square meter costs
Php48, how much did she pay for the curtains in all?
2. A matcha milk tea is being sold at a regular price of Php140. Because the café is celebrating
its 7th anniversary, they are now selling their matcha milk tea for only Php77. How much
discount (in percent) was given?
3. Steve’s tax amount due is Php850,568.24. If he is at a 32% income tax bracket, how much is
his total taxable income?
4. The sales of Eden’s Apple Pie is 15% higher for the month of April than the month of March.
If 25,000 boxes of pie were sold in the month of March, how many boxes of apple pie were
sold in April?
5. Bernard invested his money in an account where he gains 2% of his investment every month.
To gain more money, he is investing his monthly profit to the same account where he
currently invested. If his initial investment was Php60,000 and he started last June, how much
money will he have in February?

CHALLENGE YOURSELF
At the end of the year, Ralph’s dad would ask how much savings he has for the entire year (from
his allowance and cash gifts during Christmas), and he would promise to make it double as his gift to
Ralph since he has been doing good in his online classes.

In January, Ralph plans to buy a new laptop amounting to Php40,000 at the end of the year. What
advice can you give Ralph if he saves 40% of his Php250 daily allowance and he usually gets a minimum
of Php9,000 from his godparents during Christmas?

You will be graded according to the following criteria: a. Reasoning – 5 points, b. Math Integration
– 10 points, c. Practicality of Recommendation – 5 points.

BUSINESS MATH | 15
 HIGH FIVE!
To synthesize our discussion, please answer the following questions:

✓ What do you think is the importance of studying fractions, decimals, and percent in your course
as a Grade 11 student under ABM strand even if it was already discussed during your elementary
and early high school years?
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✓ Reflect on this quote: “What people think of us is just a fraction of our real self. We are greater
than what we think we are.” Share your insights briefly.
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BUSINESS MATH | 16
 LESSON 2 RATIO AND PROPORTION

LEARNING TARGETS KEY QUESTION

At the end of this lesson, you will be able to:
What is the significance
1. identify the different kinds of proportions and write examples
of real-life situations for each; and
of studying Ratio and
2. solve problems involving direct, inverse, and partitive Proportion as an ABM
proportion. student?

START UP
FACT #1
The word ratio originated from the Ancient Greek word
λόγος (logos). This word has become a more relevant concept
as the early mathematicians associated it to Latin as “ratio”
which means reason, linking it to being rational.
However, Euclid’s interpretation is analogous to mathematical computation and solving. On the
other hand, the word proportion is from the word “proportio” which was used during the medieval era.

FACT #2
The Golden Ratio is a special number
approximately equal to 1.618 and appears many times in
geometry, art, architecture, and other areas. Many
ancient and modern structures are applying the golden
ratio in them and some of which is the Parthenon in
Greece, the Great Pyramid at Giza, and the Mona Lisa

FACT #3
The concept of ratio and proportion is also used in music.
Musicians play along with frequency ratios to describe intervals
between notes tuned using a tuning system. When two notes are octave
apart, they may have different frequencies, but as long as they remain
octaves, they are in direct proportion to one another.

Activity 1: EDUCATION FAR FROM SCHOOL

This school year has a challenging year for both the teachers and students. Classes are being
conducted online, so the learning environment of the students at home is a big factor in attaining full
academic progress.

1. As a student, what for you is a conducive learning environment?

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BUSINESS MATH | 17
2. If you are to design your own learning space at home, how do you want it to be? Draw a floor plan
inside the box and indicate the specific measures of each element inside your ideal home classroom.
Include the needed materials like a table, chairs, shelves, etc. Use the scale 1 𝑐𝑚 = 1 𝑚.

WORK IT OUT
A ratio is a relationship between two numbers that define the quantity of the first in comparison
with the second while the proportion is an equation stating that the two ratios are equal.

1. DIRECT PROPORTION

In a direct proportion, as one quantity increases or decreases, the other quantity increases or
decreases at the same rate and vice versa. We can say that the two quantities 𝑥 and 𝑦 are directly
𝑥
proportional if the ratio 𝑥: 𝑦 𝑜𝑟 𝑦 is constant. This means that the quantities will either increase or
decrease by an amount that would not affect the ratio.
Illustrative Example 1 _________________________________________________________________________________
The given situations below are examples of direct proportion.

a. If there are more ads in a YouTube video, then the creator will earn more money.
b. When you lessen the amount of your investment, the amount of money that you can earn
will also decrease.

_______________________________________________________________________________________________________________________

2. SOLVING PROBLEMS INVOLVING DIRECT PROPORTION

Steps in solving problems involving direct proportion:

a. Analyze whether the situation in the problem is indeed a direct proportion.
𝑥 𝑥
b. Get the given information in the problem and write it as 𝑦1 = 𝑦2.
1 2
c. Solve for the missing term.

BUSINESS MATH | 18
Illustrative Example 2 _________________________________________________________________________________
If forty pieces of cupcakes cost Php300, how much will 100 pieces of cupcakes cost?

Solution:

Before solving the problem, we have to analyze whether the given problem is indeed a direct
proportion. In this case, we can say that the problem is indeed an illustration of a direct proportion since
the amount to pay for the cupcakes depends on the number of cupcakes that you will buy. The more
cupcakes you order, the bigger the amount you have to pay.

In the problem, the relationships that exist are the number of cupcakes (𝑥) and the amount that
you have to pay for it (𝑦). Since forty pieces of cupcakes cost 300 pesos, we can write the first ratio as
40
300
. We are asked to get the amount to pay for a hundred pieces of cupcakes, so the ratio can be written
100
as 𝑦2
.

After getting the ratio and proportion in the problem, we can now start solving for the missing
term to solve the problem.
40 100
=
300 𝑦2

(40)(𝑦2 ) = (100)(300)

40𝑦2 = 30,000
30,000
𝑦2 =
40
𝒚𝟐 = 𝟕𝟓𝟎

Since the computed value of the missing term is 750, we can now conclude that the amount
that you have to pay for 100 pieces of cupcakes is 750 pesos.

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3. INVERSE PROPORTION

In an inverse proportion, as one quantity increases, the other quantity decreases in such a
manner that the product of their corresponding values remains constant. In cases where you have to
𝑥 𝑦
write x as 𝑥1 𝑎𝑛𝑑 𝑥2 , we can express their proportional relationship as 𝑥1 = 𝑦2 .
2 1

Illustrative Example 3 _________________________________________________________________________________

The given situations below are examples of inverse proportion.

a. If more workers are doing a certain job, then the number of days it will take to finish the
work will decrease.
b. When you lessen the time of use of your cellphone, the longer its battery will last.

_______________________________________________________________________________________________________________________

4. SOLVING PROBLEMS INVOLVING INVERSE PROPORTION

Steps in solving problems involving inverse proportion:

a. Analyze whether the situation in the problem is indeed an inverse proportion.
𝑥 𝑦
b. Get the given information in the problem and write it as 1 = 2 .
𝑥2 𝑦1
c. Solve for the missing term.

BUSINESS MATH | 19
Illustrative Example 4 _________________________________________________________________________________
Six encoders are needed to finish a document in 1 hour and 20 minutes. How long will it take to
finish the same document if there are only 5 encoders?

Solution:

We can consider the given situation in the problem as an inverse proportion since the less
number of workers requires more time to finish a document.

In the problem, the existing relationships are the number of encoders (𝑥) and the time it takes to
finish the document (𝑦). We were told that 6 encoders can do finish the documents in 1 hour and 20
minutes (80 minutes), so we can write the 𝑥1 = 6 and 𝑦1 = 80. Lastly, we are asked to solve for the time
it will take for 5 encoders to finish the document, so we can write 𝑥2 = 5 and our 𝑦2 is unknown. After
𝑥 𝑦
getting the given information in the problem, we can now write their proportional relationship as 1 = 2
𝑥2 𝑦1
6 𝑦2
or = .
5 80

We can now start solving for the missing term to solve the problem.
6 𝑦2
=
5 80
(6)(80) = (5)( 𝑦2 )

480 = 5𝑦2
480
= 𝑦2
5
96 = 𝑦2

Since the computed value of the missing term is 96, we can say that 5 encoders can finish the
document in 96 minutes or 1 hour and 36 minutes.

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5. PARTITIVE PROPORTION

A partitive proportion describes a proportion of a whole quantity being distributed or divided

into a more unequal ratio.

Illustrative Example 5 _________________________________________________________________________________

The given situations below are examples of partitive proportion.

a. The ratio of boys to girls in a class of 50 is 4:6.

b. When a company distributes commission to their agents according to the number of
accounts they successfully closed.

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6. SOLVING PROBLEMS INVOLVING PARTITIVE PROPORTION

Steps in solving problems involving partitive proportion:

a. Get the ratio used in the problem.
b. Add the parts of the ratio and express it as one term (𝑥), then equate them to the given
quantity to be divided.
c. Solve for 𝑥.
d. Use (𝑥) to determine the value of each part in the ratio.

BUSINESS MATH | 20
Illustrative Example 6 _________________________________________________________________________________
Harry, Rich, and Rose are business partners. They agreed to divide their monthly profits in the
ratio 2:3:1 respectively since their investment in the company is not of an equal amount. How much
should each of them receive at the end of the month if their profit is Php1,200,000?

Solution:

We are given the ratio 2:3:1 in the problem. Therefore, 2 parts will be given to Harry, 3 parts will
be given to Rich, and 1 part will be given to Rose.

To solve for the amount that each of them should receive, we should add the parts of the ratio,
then equate them to the quantity to be divided. We can write

2𝑥 + 3𝑥 + 𝑥 = 1,200,000

6𝑥 = 1,200,000
1,200,000
𝑥=
6
𝑥 = 200,000

Since the value of 𝑥 is 200,000, we have to multiply it by the parts given to each business owner.
Therefore, we can write

Harry 2 parts 200,000 × 2 = 400,000

Rich 3 parts 200,000 × 3 = 600,000
Rose 1 part 200,000 × 1= 200,000

To answer the problem, we can now conclude that Harry will receive 400,000 pesos, Rich will
get 600,000 pesos, and Rose will have 200,000 pesos at the end of the month if their profit is
1,200,000 pesos.

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If you want to improve your knowledge about ratio and proportion, you may visit the Math Link
below.

MATH LINKS
• https://learn.sarthaks.com/direct-and-inverse-proportion/

• https://www.youtube.com/watch?v=fPQQsGL74CA

REMEMBER!
DIRECT PROPORTION
In a direct proportion, as one quantity increases or decreases, the other quantity increases or
decreases at the same rate and vice versa.
SOLVING PROBLEMS INVOLVING DIRECT PROPORTION
Steps in solving problems involving direct proportion:
a. Analyze whether the situation in the problem is indeed a direct proportion.
𝑥 𝑥
b. Get the given information in the problem and write it as 𝑦1 = 𝑦2.
1 2
c. Solve for the missing term.
INVERSE PROPORTION
In an inverse proportion, as one quantity increases, the other quantity decreases in such a
manner that the product of their corresponding values remains constant.

BUSINESS MATH | 21
SOLVING PROBLEMS INVOLVING INVERSE PROPORTION
Steps in solving problems involving inverse proportion:
a. Analyze whether the situation in the problem is indeed an inverse proportion.
𝑥 𝑦
b. Get the given information in the problem and write it as 1 = 2 .
𝑥2 𝑦1
c. Solve for the missing term.
PARTITIVE PROPORTION

A partitive proportion describes a proportion of a whole quantity being distributed or divided

into a more unequal ratio.

SOLVING PROBLEMS INVOLVING PARTITIVE PROPORTION

Steps in solving problems involving partitive proportion:
a. Get the ratio used in the problem.
b. Add the parts of the ratio and express it as one term (𝑥), then equate them to the given
quantity to be divided.
c. Solve for 𝑥.
a. d. Use (𝑥) to determine the value of each part in the ratio.

TRY THESE!
A. Schoology Activities.
B. In your notebook, do the following:
a. Create five real-life examples of Direct, Inverse, and Partitive Proportion
DIRECT PROPORTION

INVERSE PROPORTION

PARTITIVE PROPORTION

b. Solve the following problems involving direct, inverse, and partitive proportion.
1. If 1 USD is equal to PHP48.08, then how much is PHP250,000 when converted to USD?
2. An online sale is about to happen where you can buy 5 plain shirts for only PHP700. How
many shirts can you buy for PHP1820?

BUSINESS MATH | 22
 3. During the math week celebration, 10 students can finish decorating the stage in the
Gymnasium in 6 hours and 20 minutes. How many students are needed to finish decorating
the stage in 3 hours and 20 minutes?
4. A company factory can produce 400,000 boxes of canned tuna if there are only 5
malfunctioning machines. How many malfunctioning machines are there if the company only
produced 125,000 boxes of canned tuna?
5. The ratio of Grades 10, 11, and 12 students attending the Josephian leadership training is
3:1:4. How many students for each grade level are attending the training if there is a total of
48 participants?
6. If a company has a total financial asset of PHP4,000,000,000, how much do each of the major
stockholders own if their parts are in the ratio 5:4:1:6?

CHALLENGE YOURSELF
Since most of you will become business owners, managers, or accountants, create and solve an
original word problem where the three types of proportion will be applied. It should highlight the use of
ratio and proportion in real-life most especially in the business world. You may create three different
problems for each type or one problem that can cover all.
You will be graded according to the following criteria: a. Originality, b. Accuracy of the Solutions,
c. The Practicality of the Problem, d. Neatness

BUSINESS MATH | 23
 HIGH FIVE!
To synthesize our discussion, please answer the following questions:

✓ What is the significance of studying ratio and proportion as an ABM student?

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✓ Look for at least five (5) real-life applications of Ratio and Proportion. Explain how the concept
of ratio and proportion is being used in each situation.
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✓ Summarize the concept of ratio and proportion by creating a concept diagram below.

BUSINESS MATH | 24
 LESSON 3 BUYING AND SELLING

LEARNING TARGETS KEY QUESTION

At the end of this lesson, you will be able to:
1. differentiate mark-on, markup, and markdown,
How can a good selling
2. obtain mark-on, markup, and markdown given a price of a
product, strategy be of help for a
3. differentiate markup from margins, more successful
4. describe how gross margins are used in sales, and business?
5. compute single trade discounts and discount series.

DEFINITION OF TERMS

• Mark-on is a temporary increase in sale price because of forthcoming events, offers, or special
celebrations.
• Mark-up is the amount that a seller of goods or services charges over and above the total cost of
delivering its product or service to make the desired profit.
• Markdown is the reduction in the price and value of an asset. It is designed to increase sales
when a business cannot sell a product at its present price.
• Total Costs refer to the sum of the direct and indirect costs.
• Direct Cost is the cost of acquiring the goods or services being offered. It includes raw materials
and direct labor.
• Indirect Costs are other expenses incidental to the goods like the selling expenses and general
administrative expenses.
• Selling Price is obtained by applying the markup and markdown to the cost of the product.
• Single Trade Discount is a benefit given to the customer after making a purchase that meets
certain conditions to avail of the discount.
• Discount Series is a discount offered through satisfying a combination of conditions.
__________________________________________________________________________________________________________________

MARKUP

Establishing a markup is one of the most important parts of a pricing strategy. It must be fair
enough to cover all the expected business expenses and reductions and still provide a good profit.
To generate a good pricing strategy using markups, we must be familiar with the following:
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑜𝑟 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝐶𝑜𝑠𝑡 = 𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒 + 𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡
𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑡ℎ𝑒 𝑅𝑒𝑡𝑎𝑖𝑙 𝑃𝑟𝑖𝑐𝑒 =
(100 − 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒) %
𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡 = 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 × 𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒
𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡
𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 𝑜𝑟 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝐶𝑜𝑠𝑡 (%) = × 100
𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒
𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡
𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑒 𝑜𝑟 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 (%) = × 100
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
Illustrative Example 1 _________________________________________________________________________________
If the selling price of a product is Php 1000 from its original cost of Php 650, find the following:

a. Markup Amount

b. Markup Rate

c. Margin Rate

d. Selling Price based on the Retail Price

BUSINESS MATH | 25
Solution:

a. To solve the markup amount, all we have to do is subtract the cost price of the product from
the selling price. We write

𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 = 𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒 + 𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡

𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 − 𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒 = 𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡
𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡 = 1000 − 650

𝑴𝒂𝒓𝒌𝒖𝒑 𝑨𝒎𝒐𝒖𝒏𝒕 = 𝟑𝟓𝟎 𝒑𝒆𝒔𝒐𝒔

b. We can now solve the markup rate since we already have the markup amount. We use the
formula
𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡
𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 𝑜𝑟 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝐶𝑜𝑠𝑡 (%) = × 100
𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒
350
𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 𝑜𝑟 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝐶𝑜𝑠𝑡 (%) = × 100
650
7
𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 𝑜𝑟 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝐶𝑜𝑠𝑡 (%) = × 100
13
𝑴𝒂𝒓𝒌𝒖𝒑 𝑹𝒂𝒕𝒆 𝒐𝒓 𝑴𝒂𝒓𝒌𝒖𝒑 𝑹𝒂𝒕𝒆 𝑩𝒂𝒔𝒆𝒅 𝒐𝒏 𝑪𝒐𝒔𝒕 (%) = 𝟓𝟒. 𝟖𝟓%

c. To compute the margin rate, use the formula

𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡
𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑒 𝑜𝑟 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 (%) = × 100
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
350
𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑒 𝑜𝑟 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 (%) = × 100
1000
7
𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑒 𝑜𝑟 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 (%) = × 100
20
𝑴𝒂𝒓𝒈𝒊𝒏 𝑹𝒂𝒕𝒆 𝒐𝒓 𝑴𝒂𝒓𝒌𝒖𝒑 𝑹𝒂𝒕𝒆 𝑩𝒂𝒔𝒆𝒅 𝒐𝒏 𝑺𝒆𝒍𝒍𝒊𝒏𝒈 𝑷𝒓𝒊𝒄𝒆 (%) = 𝟑𝟓%

d. Since we already computed the value of the markup rate, we can now solve the selling price of
the product based on the retail price. We use the formula
𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑡ℎ𝑒 𝑅𝑒𝑡𝑎𝑖𝑙 𝑃𝑟𝑖𝑐𝑒 =
(100 − 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒) %
650
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑡ℎ𝑒 𝑅𝑒𝑡𝑎𝑖𝑙 𝑃𝑟𝑖𝑐𝑒 =
(100 − 54.85) %
650
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑡ℎ𝑒 𝑅𝑒𝑡𝑎𝑖𝑙 𝑃𝑟𝑖𝑐𝑒 =
45.15%
𝑺𝒆𝒍𝒍𝒊𝒏𝒈 𝑷𝒓𝒊𝒄𝒆 𝒃𝒂𝒔𝒆𝒅 𝒐𝒏 𝒕𝒉𝒆 𝑹𝒆𝒕𝒂𝒊𝒍 𝑷𝒓𝒊𝒄𝒆 = 𝟏, 𝟒𝟑𝟗. 𝟔𝟓 𝒑𝒆𝒔𝒐𝒔
__________________________________________________________________________________________________________________

CONVERSION OF MARKUP RATES

𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑒
𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 =
1 − 𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑒
𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒
𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑒 =
1 + 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒

BUSINESS MATH | 26
Illustrative Example 2 _____________________________________________________________________________
Solve the following:

a. The markup rate of a product is 20%. What will be the markup rate of the product based on
the selling price?
b. The margin rate of a product is 10%. What will be its markup rate based on cost?

Solution:

a. In the first item, we are asked to give the markup rate of the product based on the selling
price, which is the margin rate, given the markup rate. Therefore, we use the formula
𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒
𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑒 =
1 + 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒
20%
𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑒 =
1 + 20%
𝑴𝒂𝒓𝒈𝒊𝒏 𝑹𝒂𝒕𝒆 = 𝟏𝟔. 𝟔𝟕%

b. In the second item, we are simply asked to convert the margin rate to its equivalent markup
rate. Therefore, we use the formula
𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑒
𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 =
1 − 𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑒
10%
𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 =
1 − 10%
𝑴𝒂𝒓𝒌𝒖𝒑 𝑹𝒂𝒕𝒆 = 𝟏𝟏. 𝟏𝟏%

Just do not forget to always express the answers in percent since we are dealing with rates.

_______________________________________________________________________________________________________________________

PROBLEM-SOLVING INVOLVING MARKUPS

In solving problems, we must remember the following steps:

a. Analyze what is asked in the problem.
b. Use the given information and link its connection with what is being asked.
c. Apply the necessary concepts.
d. Solve.
Illustrative Example 3 _________________________________________________________________________________
The cost price of the t-shirt is Php250. What will be its selling price if you want to have a 20%
markup based on its

a. cost price?
b. retail price?

Solution:

a. To compute the selling price of the t-shirt based on its cost price, we have to solve the markup
amount first.

𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡 = 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 × 𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒

𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡 = 20% × 250
𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡 = 50
After that, we can now solve for the selling price based on its cost price.
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑜𝑟 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝐶𝑜𝑠𝑡 = 𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒 + 𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑜𝑟 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝐶𝑜𝑠𝑡 = 250 + 50

BUSINESS MATH | 27
 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑜𝑟 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝐶𝑜𝑠𝑡 = 300
Therefore, the selling price of the t-shirt based on its cost price is Php300.
b. Since we already know the markup amount of the item, we can simply solve the selling price
of the item based on its retails price by using the formula
𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑡ℎ𝑒 𝑅𝑒𝑡𝑎𝑖𝑙 𝑃𝑟𝑖𝑐𝑒 =
(100 − 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒) %
250
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑡ℎ𝑒 𝑅𝑒𝑡𝑎𝑖𝑙 𝑃𝑟𝑖𝑐𝑒 =
(100 − 20) %
250
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑡ℎ𝑒 𝑅𝑒𝑡𝑎𝑖𝑙 𝑃𝑟𝑖𝑐𝑒 =
80 %
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑡ℎ𝑒 𝑅𝑒𝑡𝑎𝑖𝑙 𝑃𝑟𝑖𝑐𝑒 = 312.5
Therefore, the selling price of the t-shirt based on its retail price is Php312.5

_______________________________________________________________________________________________________________________

MARKDOWN

Sometimes a business owner may opt to reduce the marked price of the products or services
because the current price does not attract the customers to buy or avail it. Therefore, a markdown will
be implemented.

In dealing with markdowns, we must be aware of the following:

𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝐴𝑚𝑜𝑢𝑛𝑡 = 𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒 × 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒

𝑁𝑒𝑤 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 = 𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒 − 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝐴𝑚𝑜𝑢𝑛𝑡

𝑁𝑒𝑤 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒 =
(100 − 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒)%

Illustrative Example 4 _________________________________________________________________________________

If the markdown rate is 15% and the new selling price is 850, what are the regular price and the
markdown amount?

Solution:

To solve the regular price given the new selling price and markdown rate, we use the formula
𝑁𝑒𝑤 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒 =
(100 − 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒)%
850
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒 =
(100 − 15)%
850
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒 =
85%
𝑹𝒆𝒈𝒖𝒍𝒂𝒓 𝑷𝒓𝒊𝒄𝒆 = 𝟏𝟎𝟎𝟎

Now, we have to solve for the markdown amount by using the formula

𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝐴𝑚𝑜𝑢𝑛𝑡 = 𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒 × 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒

𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝐴𝑚𝑜𝑢𝑛𝑡 = 1000 × 15%

𝑴𝒂𝒓𝒌𝒅𝒐𝒘𝒏 𝑨𝒎𝒐𝒖𝒏𝒕 = 𝟏𝟓𝟎

Therefore, we can say that the regular price is 1000 and the markdown amount is 150.

BUSINESS MATH | 28
PROBLEM-SOLVING INVOLVING MARKDOWNS

In solving problems, we must remember the following steps:

a. Analyze what is asked in the problem.
b. Use the given information and link its connection with what is being asked.
c. Apply the necessary concepts.
d. Solve.
Illustrative Example 5 _________________________________________________________________________________
Ella is selling branded shoes online. For her 2nd anniversary in the business, she is planning to sell
all pairs of shoes with a regular selling price of Php12,000 for only Php10,000.

a. How much was the markdown rate?

b. If she still made a 25% markup on the new price, how much does each pair of shoes cost?

Solution:

a. To solve the markdown rate, we have to compute first the total markdown amount. In this
case, we have to use the formula

𝑁𝑒𝑤 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 = 𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒 − 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝐴𝑚𝑜𝑢𝑛𝑡

10,000 = 12,000 − 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝐴𝑚𝑜𝑢𝑛𝑡

𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝐴𝑚𝑜𝑢𝑛𝑡 = 12,000 − 10,000

𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝐴𝑚𝑜𝑢𝑛𝑡 = 2,000

Since we already have the markdown amount, we can start solving for the
markdown rate by using the formula

𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝐴𝑚𝑜𝑢𝑛𝑡 = 𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒 × 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒

2,000 = 10,000 × 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒

2,000
𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒 =
10,000
𝑴𝒂𝒓𝒌𝒅𝒐𝒘𝒏 𝑹𝒂𝒕𝒆 = 𝟎. 𝟐 𝒐𝒓 𝟐𝟎%

b. It was stated that she still has a 25% markup even after selling the shoes at Php10,000. Our
goal is to get the cost of the shoes, so we have to identify first the markup amount.

𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡 = 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 × 𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒

𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡 = 0.25 × 𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒
𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡 = 0.25𝐶
For now, the computed markup amount is 0.25C since the cost is still unknown.
After that, we use the formula
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑜𝑟 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝐶𝑜𝑠𝑡 = 𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒 + 𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡
10,000 = 𝐶 + 0.25𝐶
10,000 = 1.25𝐶
10,000 1.25𝐶
=
1.25 1.25
𝐶 = 8,000
Therefore, the cost of the shoes is Php8,000. Meaning, even if Ella is selling a pair of shoes from
Php12,000 to Php10,000, she is still earning Php2,000 per pair because she still has a 25% markup in the
new price.

BUSINESS MATH | 29
SINGLE TRADE DISCOUNT
A single trade discount is a discount that is given to a customer when the customer buys a
product. The conditions may include bulk purchasing, cash purchasing, or the items that might be sold
during a sale promotion.

Illustrative Example 6 _________________________________________________________________________________

A local merchandising store plans to give a 10% discount to every customer with a minimum
order worth Php5,000. If Ralph purchased curtains and bedsheets worth Php7,500 in all, how much does
he need to pay for the items?

Solution:

To avail of the discount offered, Ralphs needs to order at least Php5,000 worth of items. Since he
satisfied the condition, we can already apply the single trade discount in his purchases.
We have to solve first for the amount of discount that Ralph could get, so we write
7,500 × 10% = 𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡 𝐴𝑚𝑜𝑢𝑛𝑡
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡 𝐴𝑚𝑜𝑢𝑛𝑡 = 750
To solve for the total amount that Ralph would have to pay, we will now subtract the discount
amount from his total bill.
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 = 𝑇𝑜𝑡𝑎𝑙 𝐵𝑖𝑙𝑙 − 𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡 𝐴𝑚𝑜𝑢𝑛𝑡
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 = 7,500 − 750
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 = 6,750
Ralph just needs to pay Php6,750 only for all his purchases.
_______________________________________________________________________________________________________________________
DISCOUNT SERIES

A discount series refers to a discount that you offer based on several different conditions. It is
another marketing strategy made by businesses where the buyers have to meet different conditions at
different times.

Illustrative Example 7 _________________________________________________________________________________

SM Square is offering a big Friday Sale for their loyal customers. If you are a loyalty cardholder
you get 10% off, 5% off for all customers who will pay in cash, and another 20% discount if you have at
least a total purchase worth Php10,000. After shopping for her friend’s birthday, Morissette’s grocery
items amount to Php20,000 in all. How much does she have to pay if she is a loyalty cardholder and wants
to pay in cash?

Solution:

Before we start solving, we have to analyze first whether which conditions to avail of the
discounts were met. Since Morissette has a total of a single receipt worth Php20,000, then she will get a
20% discount. Also, it was stated that she is a loyalty cardholder and would pay in cash. Therefore, she
can also get the 10% and 5% discount respectively.
The first step is to get the discounted price when 20% off is applied. We write
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 = 20,000 − (20,000 × 20%)
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 = 20,000 − 4,000
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 = 16,000
Next is to get the discounted price when 10% off is applied. We write
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 = 16,000 − (16,000 × 10%)
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 = 16,000 − 1,600

BUSINESS MATH | 30
 𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 = 14,400
Lastly, we will get the discounted price when 5% off is applied. We write
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 = 14,400 − (14,400 × 5%)
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 = 14,400 − 720
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 = 13,680
Therefore, Morissette must pay Php13,680 only since all the conditions for the discounts
were satisfied.
_______________________________________________________________________________________________________________________

REMEMBER!

FORMULAS TO USE IN DEALING WITH MARKUP

𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑜𝑟 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝐶𝑜𝑠𝑡 = 𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒 + 𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡
𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑡ℎ𝑒 𝑅𝑒𝑡𝑎𝑖𝑙 𝑃𝑟𝑖𝑐𝑒 =
(100 − 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒) %
𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡 = 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 × 𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒
𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡
𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 𝑜𝑟 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝐶𝑜𝑠𝑡 (%) = × 100
𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒
𝑀𝑎𝑟𝑘𝑢𝑝 𝐴𝑚𝑜𝑢𝑛𝑡
𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑒 𝑜𝑟 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 (%) = × 100
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒

CONVERTING MARKUP RATE TO MARGIN RATE AND VICE VERSA

𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑒
𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒 =
1 − 𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑒
𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒
𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑒 =
1 + 𝑀𝑎𝑟𝑘𝑢𝑝 𝑅𝑎𝑡𝑒

FORMULAS TO USE IN DEALING WITH MARKDOWN

𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝐴𝑚𝑜𝑢𝑛𝑡 = 𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒 × 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒
𝑁𝑒𝑤 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 = 𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒 − 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝐴𝑚𝑜𝑢𝑛𝑡
𝑁𝑒𝑤 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑟𝑖𝑐𝑒 =
(100 − 𝑀𝑎𝑟𝑘𝑑𝑜𝑤𝑛 𝑅𝑎𝑡𝑒)%

A single trade discount is a discount that is given to a customer when the customer buys a
product. The conditions may include bulk purchasing, cash purchasing, or the items that might be sold
during a sale promotion.

A discount series refers to a discount that you offer based on several different conditions. It
is another marketing strategy made by businesses where the buyers have to meet different conditions
at different times.

BUSINESS MATH | 31
 TRY THESE!
A. Schoology Activities.

B. Complete the table below by giving the corresponding values needed in each row. For rates with
nonterminating decimals, round off the answers to the nearest hundredths – two decimal places.
SELLING MARKUP RATE MARKUP RATE
PRICE BASED BASED ON BASED ON
SELLING
COST MARKUP ON THE COST SELLING PRICE
PRICE
RETAIL (MARKUP (MARGIN
PRICE RATE) RATE)

300 20%

1,140 390

12,000 14,634.15 18%

12,325 8,500

260 60 285.7 30%

C. Convert the markup rates to margin rates and vice versa. For rates with nonterminating
decimals, round off the answers to the nearest hundredths – two decimal places. (1point each)

MARKUP RATE MARGIN RATE

40%

50%

22%

22%

47%

61%

D. Solve the following problems involving markup, markdown, and discounts.

1. A spa service costs Php600 per customer because of all the needed materials and salary of the
employee. If you want to gain a 40% markup for every spa service per customer, what will be the
service charge based on its
a. cost price?
b. retail/service price?

2. A gadget store offers a 10% discount for all laptops for their store opening. It was again
discounted by another 12% before the first week of classes. If you got the laptop for Php35,000
only, how much was the original price?

3. Clint was able to sell his ice cream cake for Php900. If he has an 80% markup for each cake, by
how many percent should can he offer a markdown so he could still earn 100 pesos per cake?
BUSINESS MATH | 32
 4. Peter, a grade 8 student was able to get a 5% discount on his tuition fee for paying it fully in
cash. He also got another 5% discount since his parents are both alumni of the school. How much
does he have to pay in all if his annual tuition fee is Php90,000 given that he is an honor student
with a tuition discount of 50%?

CHALLENGE YOURSELF
Suppose you are to sell 500 t-shirts for the upcoming foundation anniversary of your school as
an income-generating project in one of your major subjects. For this project, your goal is to have at least
Php10,000 profit within 5 days of the school fair.

How much should each shirt cost? How much will you sell them? Let us say you will offer a
markdown on the last day of the school fair, by how many percent of markdown can you give so you can
still have your profit from it.

Complete the tables below to plan out your selling strategy.

COST OF ALL THE SHIRTS

TOTAL COST OF ALL THE SHIRTS
COST OF EACH SHIRT QUNATITY
(COST PRICE×NUMBER OF SHIRTS)
500

FIRST FOUR DAYS OF THE SCHOOL FAIR (TO SELL 420 SHIRTS)
MARKUP RATE FOR TOTAL SALES
SELLING PRICE
EACH SHIRT (SELLING PRICE×NUMBER OF SHIRTS)

LAST DAY OF THE SCHOOL FAIR (TO SELL 80 SHIRTS)

MARKDOWN RATE FROM ITS REGULAR TOTAL SALES
SELLING PRICE
PRICE (SELLING PRICE×NUMBER OF SHIRTS)

SALES INVENTORY
TOTAL SALES ON THE FIRST TOTAL SALES ON THE TOTAL SALES DURING THE FIVE-DAY SCHOOL TOTAL PROFIT (TOTAL COST OF ALL THE
FOUR DAYS LAST DAY FAIR (SUM OF THE SALES) SHIRTS – TOTAL SALES)

HIGH FIVE!
To synthesize our discussion, please answer the following questions:
✓ What makes a pricing or selling strategy successful?
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________

BUSINESS MATH | 33
✓ As business owners, we know that giving discount offers could attract more customers to buy the
product or avail of the services that we offer. What do you think are the limitations of giving
discounts to make a progressive profit?
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________

Congratulations on completing the module!

“How well did you perform in this module?”

Choose one emoji, then tell me the reason
why.

BUSINESS MATH | 34
 POST-ASSESSMENT
Instructions: Choose the letter that corresponds to your answer, then write on the
space provided before the number. If your answer is not included in the choices,
write E.
_____ 1. What is 12.4 in fraction form?
12 62
a. c.
4 5
1 1
b. 12 4 d. 12 5

_____ 2. What is 0.06% in decimal form?

a. 0.06 c. 0.0006
b. 0.006 d. 0.00006
9
_____ 3. What is 1250 in percent form?

a. 0.072% c. 7.2%
b. 0.72% d. 72%
_____ 4. During the grand finals of The Voice of the Philippines, a total of 24,890,240
were casted. After tallying the votes, Natasha got 10% of the total votes,
Clint and Bruce got 10% and 15% of the remaining votes respectively, and
Pepper got the rest of the votes. What is the total number of Pepper’s
accumulated votes?
a. 2,489,024 c. 16,800,912
b. 5,600,304 d. 16,178,656
_____ 5. An organization received a total donation of 3,500 kilos of rice for the
people who are affected by the pandemic. To accommodate more
people, they decided to divide and distribute the donation to 14 different
barangays. How many people will benefit from the donation in all if each
5
recipient will receive 2 kilos of rice?

a. 100 c. 1,400

b. 250 d. 3,500
_____ 6. A small bottle of mixture has to have 5.2 ml of solution A, and 1.8 ml of
solution B, and the rest is water. If each bottle has 9.7 ml of mixture, how
much water is need to create 100 bottles of the said mixture?
a. 520 𝑚𝑙 c. 970 𝑚𝑙

b. 270 𝑚𝑙 d. 1000 𝑚𝑙
_____ 7. If x is directly proportional to the square of y, and x = 8 when y = 4. What is
the value of y when x is 18?
a. 6 c. 12
b. 9 d. 20

BUSINESS MATH | 35
_____ 8. If y is inversely proportional to x, and y = 3 when x = 4. What is the value of
x when y = 6?
a. 2 c. 8
b. 5 d. 11

_____ 9. A quantity is in a partitive proportion of 7:1:4. What is the value of the

largest part if the total value of the quantity is 2,000?
a. 600 c. 1,700
b.1,400 d. 1,900
_____ 10. An investment is growing directly proportional with time. After 2 years,
your investment can already earn Php 3,000. How much money can you
earn after 65 months?
a. 𝑃ℎ𝑝 1,500 c. 𝑃ℎ𝑝 97,500
b. 𝑃ℎ𝑝 8,125 d. 𝑃ℎ𝑝 99,000
_____ 11. Scott pays Php 50,000 monthly so he could finish paying his loan in 1 year.
How long will it take if he would just like to pay Php 4,800 monthly?
5
a. 10.5 𝑦𝑒𝑎𝑟𝑠 c. 10 12 𝑦𝑒𝑎𝑟𝑠
1 1
b. 12 2 𝑦𝑒𝑎𝑟𝑠 d. 12 12 𝑦𝑒𝑎𝑟𝑠

_____ 12. A fund has to be divided by four beneficiaries in the ratio 2:3:8:6. How much
is the least amount of money that one of the four beneficiaries could get if the
total fund available is Php 684,000?
a. 𝑃ℎ𝑝 73,000 c.𝑃ℎ𝑝 288,000
b. 𝑃ℎ𝑝 100,000 d. 𝑃ℎ𝑝 216,000
_____ 13. If the markup amount of a product is Php 1,200 and margin rate or
markup rate based on the selling price is 60%, then how much will be the
selling price?
a. 𝑃ℎ𝑝 1,920 c. 𝑃ℎ𝑝 2,100
b. 𝑃ℎ𝑝 2,000 d. 𝑃ℎ𝑝 3,000
_____ 14. If the selling price of a product based on the retail price is Php 769 and
the cost price is Php 500, then how much is the applied markup rate?
a. 35% c. 65%
b. 45% d. 75%
_____ 15. What is the margin rate of the product if the markup rate is 21%?
a. 17% c. 37%
b. 27% d. 47%
_____ 16. What is the markup rate of the product if the margin rate is 32%?
a. 17% c. 36%
b. 24% d. 47%

BUSINESS MATH | 36
For items 17-18, please refer to the given problem below:
A spa service costs Php 2,500 per customer because of all the needed
materials and salary of the employee. If you want to gain a 30% markup for every
spa service per customer, what will be the service charge based on its
_____ 17. cost price?
a. 𝑃ℎ𝑝 750 c. 𝑃ℎ𝑝 3,571
b. 𝑃ℎ𝑝 3,250 d. 𝑃ℎ𝑝 8,333
_____ 18. retail/service price?
a. 𝑃ℎ𝑝 750 c. 𝑃ℎ𝑝 3,571
b. 𝑃ℎ𝑝 3,250 d. 𝑃ℎ𝑝 8,333
_____ 19. Peter was able to sell his product for Php 650. How much was the
approximate original price of the product if he was able to add 16%
markup?
a. 𝑃ℎ𝑝 546 c. 𝑃ℎ𝑝 622
b. 𝑃ℎ𝑝 560 d. 𝑃ℎ𝑝 754
_____ 20. A summer sale offers 10% on all items. Aside from that, you can also avail of
5% discount when you have a loyalty card and additional 4% when you
purchase a minimum of Php 10,000. How much would Tony have to pay if he
is a loyalty card holder and purchased a total Php 15,000?
a. 𝑃ℎ𝑝 12,150 c. 𝑃ℎ𝑝 12, 450
b. 𝑃ℎ𝑝 12,312 d. 𝑃ℎ𝑝 12,672

BUSINESS MATH | 37
References:
A. Books
1. Lopez, B. C., Lundag, L. C., & Dagal, K. P. (2016). Business Math, Vibal Group Inc.
2. Santos, D. C. & Sta. Maria, K. V. (2015). Math Activated: Engage Yourself and Our World
(Business Math), Don Bosco Press Inc.
3. Bacani, J. B. & Soriano, J. M. (2017). Business Math for Senior High School, C&E Publishing
Inc.
B. Websites
1. Unit: Fractions, Decimals, & Percentages (2019). Retrieved from Khan Academy.
https://www.khanacademy.org/math/cc-seventh-grade-math/cc-7th-fractions-
decimals
2. Green, Larry. (2020). Fractions, Decimals, and Percent. Retrieved from Mathematics
Libretexts.
https://math.libretexts.org/Courses/De_Anza_College/Pre-
Statistics/1%3A_Decimals_Fractions_and_Percents/1.2%3A_Converting_between_Fracti
ons_-_Decimals_and_Percents
3. Team Sarthaks. (2021). Direct and Inverse Proportion. Retrieved from Sarthaks eConnect.
https://learn.sarthaks.com/direct-and-inverse-proportion/
4. Doria, Sheena. (2021). Direct, Inverse, and Partitive Proportion. Retrieved from YouTube.
https://www.youtube.com/watch?v=fPQQsGL74CA

Answer Key for Try These Activities (LESSONS 1)

_________________________________________________________________________________________________________
a. Complete the table below by converting the given values to its equivalent fractions, decimals, or
percent.
FRACTIONS DECIMALS PERCENT
𝟗
0.5625 56.25%
𝟏𝟔
1701
𝟎. 𝟏𝟕𝟎𝟏 17.01%
10000
1443
0.7215 𝟕𝟐. 𝟏𝟓%
2000
4501
𝟗. 𝟎𝟎𝟐 900.2%
500
𝟏𝟑
𝟐 2.26 226%
𝟓𝟎
3
𝟎. 𝟎𝟎𝟒𝟖 0.48%
625
309 𝟗
0.1545 𝟏𝟓 %
2000 𝟐𝟎

b. Solve the following problems involving fractions, decimals, and percentages.

1. Php429. 6

2. 45%

3. Php578,286.4032

BUSINESS MATH | 38
 Answer Key for Try These Activities (LESSON 2)
_________________________________________________________________________________________________________
b. Solve the following problems involving direct, inverse, and partitive proportion.
1. 5,199.67 USD

3. 19 Students

5. 18 Grade 10 students, 6 Grade 11 students, and 24 Grade 12 students.

Answer Key for Try These Activities (LESSON 3)

_________________________________________________________________________________________________________

B. Complete the table below by giving the corresponding values needed in each row. For rates with
nonterminating decimals, round off the answers to the nearest hundredths – two decimal places.
SELLING MARKUP RATE MARKUP RATE
PRICE BASED BASED ON BASED ON
SELLING
COST MARKUP ON THE COST SELLING PRICE
PRICE
RETAIL (MARKUP (MARGIN
PRICE RATE) RATE)

360 300
60 375 20% 16.67%
750 52%
1,140 390 1,562.5 34.21%
12,000 15.25%
14,160 2,160 14,634.15 18%
8,500 31.03%
12,325 3,825 15,454.55 45%

200 23.08%
260 60 285.7 30%

C. Convert the markup rates to margin rates and vice versa. For rates with nonterminating
decimals, round off the answers to the nearest hundredths – two decimal places. (1point each)

MARKUP RATE MARGIN RATE

40% 28.57%

50% 33.33%

22% 18.03%

28.21% 22%

88.68% 47%

156.41% 61%

BUSINESS MATH | 39
 WORKSHEET #1 Fractions, Decimals, Percentage, and Ratio
and Proportion
Name: Date of Submission:

Grade and Section:

Score:

A. Complete the table below by converting the given value to other forms. (1 point each)

FRACTIONS DECIMALS PERCENT

8
25

4.005

36.95%

0.46

1
87 %
8

B. Solve the following problems. (solution – 3 points, final answer – 1 point)

1. A clothing company is planning to give a five-day-sale that offers a 50% discount on a shirt that costs 900
9
pesos. Three days before the sale, they already sold 20 of their total shirt stocks. If they have a stock of 200 shirts
that they get for only 350 pesos each from the beginning, how much are their total earnings for the shirt given
that they went of out stock after the five-day-sale?

BUSINESS MATH: BUYING AND SELLING (Part 1) | 40

2. Rex is saving his money so he could travel at the end of the year. He has a total savings of 120,000 at the start.
3
After one month, he used of his savings for emergency purposes. The next month, his current savings had
5
increased by about 25%. Now, his savings have once again decreased by 0.15. How much money is left?

3. Ken started investing his money at a very reasonable interest rate. After 7 months, he earned a total of PHP
10,500. How much money will he earn after 2 years and 4 months?

4. Howard, Richie, Chanel, and Jemina started a business amidst the pandemic. They need a capital of PHP
750,000 to start operating the business, so they have decided to give their investments in the ratio 5:10:8:7. How
much money did each of them invest?

5. Ralph borrowed some money from his good friend Ellaine. He has to pay Ellaine PHP4,000 monthly if he is
about to pay his debt in 4 years and 7 months. If he wants to pay in 6 years and 8 months, how much is the
required amount to give Ellaine monthly?

BUSINESS MATH: BUYING AND SELLING (Part 1) | 41

 WORKSHEET #2 Buying and Selling
Name: Date of Submission:

Grade and Section:

Score:

A. Complete the table below by giving the corresponding values needed in each row. For rates with nonterminating
decimals, round off the answers to the nearest hundredths – two decimal places. (1 point each)
MARKUP RATE
SELLING PRICE MARKUP RATE
BASED ON SELLING
SELLING PRICE COST MARKUP BASED ON THE BASED ON COST
PRICE (MARGIN
RETAIL PRICE (MARKUP RATE)
RATE)

500 300 _________ _________ _________ _________

65,000 _________ 7800 _________ _________ _________
_________ 12,000 _________ _________ 35% _________
_________ 900 _________ _________ _________ 14%

B. Convert the markup rates to margin rates and vice versa. For rates with nonterminating decimals, round off the
answers to the nearest hundredths – two decimal places. (1point each)

MARKUP RATE MARGIN RATE

25%

35%

22%

31%

66%

8%

C. Solve the following problems. (solution – 3 points, final answer – 1 point)

1. Quincy is selling wireless keyboards online. She purchased her items directly from the factory which cost her
Php6,600 per dozen. To lessen the operating expenses, she ordered 20 dozens in all. If she wants to have a
markup of 30% per keyboard, how much will be the selling price based on its
a. cost price?

b. retail price?

BUSINESS MATH: FRACTIONS, DECIMALS, AND PERCENTAGE | 42

c. Let us say she successfully sold all the keyboards by selling it based on its cost price, how much profit does
she have in total?

2. The biggest sale of the year is about to happen on Valentine’s Day, so Jelly, as the store manager plans to have
strategic pricing of the items so that they could still have a 20% markup in their stuffed toys even if they offer a
20% markdown in all items during the Valentine Sale. They decided that the new selling price will be Php300.
a. How much was the regular selling price of the stuffed toys?

b. How much does each of the stuffed toys originally cost?

BUSINESS MATH: FRACTIONS, DECIMALS, AND PERCENTAGE | 43

3. A supermarket is celebrating its golden anniversary, so they are offering golden discounts for the customers
aside from their regular promo of 5% off when a customer has an advantage card. The golden discount includes
a 5% off in your total purchase until May 1, 2021, and 10% off when you have a minimum purchase of
Php20,000.

a. Steve went to the supermarket on the last day of the promo and has a total purchase of Php5,400.25 only.
However, he has an advantage card. How much did he pay for the items?

b. Tony has a total purchase of Php30,000 and has an advantage card, but went to the supermarket after the
promo period. How much discount did he get?

c. Natasha went to the supermarket on the last day of April 2021. At the cashier, her grocery items cost her a
total of Php25,000. How much did she pay if she has an advantage card?

BUSINESS MATH: FRACTIONS, DECIMALS, AND PERCENTAGE | 44