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21 views7 pages

Pork and Bean Script

Eurghhh huhu

Uploaded by

sarahaventurero31
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 7

Business Mathematics Page 1 of 7

Mark-on, Mark-up and Mark-down

Topic: Mark-on, Mark-up and Mark-down

Welcome Notes:
WELCOME ABM STUDENTS.

I. INTRODUCTION:

“Business relationships are just like personal relationships— they are best started showing an
interest in the other person, and in finding out what that person needs are, because ultimately we are
selling to those needs.”

Warren Buffett

This module focuses on mark-on, mark down and mark-up. It introduces the learner to differentiate
the mark-on, markup and mark-down. All of these include price, which is the central factor in buying and
selling. Examples will be presented to illustrate the formulas for each concept introduced.

II. OBJECTIVES:

At the end of this module, you will be able to:


1. Define Cost price, Operating cost and Selling Price
2. Differentiate Mark-on, Mark-down and Mark-up; and
3. Obtain Mark-on, Mark-down and Mark-up given price of a product.
Business Mathematics Page 2 of 7
Mark-on, Mark-up and Mark-down

IV. LESSON PROPER: LET’S BEGIN!

Based on the preliminary activity, what did you notice about it?

___________________________________________________

CONGRATULATIONS!

4.1 Define Cost price, Operating cost and Selling Price


Cost Price - the price that a company or store has to pay for the goods it is going to sell the price that has
to be spent to produce goods or services before any profit is added.
Operating Cost - the price (per unit) incurred relative to the production and sale of a commodity
Selling Price - the price at which the commodity is sold per unit.

4.2 Differentiate Mark-on, Mark-down and Mark-up


MARK-ON - pretend that during the actual food sale, your group realizes that there is such a high demand
for your banana cue and that buyers can easily afford the selling price you have pegged. Some businesses
will want to take advantage of this peak season and thus, increase the prices already pegged for their
commodities. This is what we call the MARK-ON.
MARK-DOWN - is a price reduction from the original selling price of merchandise. The reduction on the
regular price of a product may have been brought by damaged goods, discontinued item, old stocks,
clearing inventor, and other events.
Most markdowns should not be viewed as losses but as sales promotion opportunities used to
increase sales and profit. When sale is over, raising prices to the original price is called as a markdown
cancellation.
MARK-UP- the difference between the selling price and the cost price sometimes referred to as MARGIN
or GROSS PROFIT.
Business Mathematics Page 3 of 7
Mark-on, Mark-up and Mark-down

4.3 Obtain Mark-on, Mark-down and Mark-up given price of a product.

The following variables will be in our mathematical treatment on Mark-on;


C = Cost PS = Peak Selling Price
SP = Selling Price S = Regular Selling Price
M = Mark-up MO = Mark-on
SP = C + M
M = SP - C
MO = PS - S
Examples:
1. Manang Crising observes that market goers prefer to buy fish from her because there is an under supply
of meat in the market this season. She then decides to increase the price of galunggong by PHP10 per kilo.
If the cost of galunggong is PHP 90 per kilo with a 35% mark-up, what is its new selling price with the
additional increase of PHP 10? By how much is the rate of mark-up based on cost increased by adding
PHP 10 to the regular selling price of the galunggong?
Solution:
Given: Regular Selling Price = Php 90 per kilo Mark on = Php 10
Mark up = 35% = 0.35
M = 0.35 x S
= 0.35 x 90
= Php 31.50

Selling Price before increase:


SP =C+M
= 90 + 31.50
= Php 121.50 Selling Price after increase:
Business Mathematics Page 4 of 7
Mark-on, Mark-up and Mark-down

PS = S + MO
= 121.50 + 10
= Php 131.50

Combined Rate of Mark-up and Mark-on = 31.50+10 = 0.4611 = 46.11


90
46.11 – 35 = 11.11%
Thus, the mark-up is increased by 11.11% by the additional mark-on of Php 10 imposed by Manang Crising.

2. Yvette’s Flower Shop imposes a 45% mark-up on flowers delivered to them for sale. During All Saint’s
Day, however, an additional mark-on of 25% of the regular selling price is added on. Determine the unit
price of 300 roses worth Php 15,000 delivered to Yvette’s Flower Shop during All Saint’s Day. How much is
the selling price of each rose during All Saint’s Day at this flower shop?
Solution:
Given: Mark-up = 45% = 0.45 Unit Price = Php 15,000
Mark-on = 25% of regular price = 0.25
Unit Price = 15000 = Php 50
300
M = 0.45 x C
= 0.45 x 50
= Php 22.50

SP =C+M
= 50 + 22.50
= Php 72.50
Business Mathematics Page 5 of 7
Mark-on, Mark-up and Mark-down

MO = 0.25S
= 0.2572.50
= Php 18.125 ≈ Php 18.15

PS = SP + MO
= 72.50 + 18.15
= Php 90.65
Thus, Each rose sells for Php 90.65 at Yvette’s Flower Shop during All Saint’s Day.

The following variables will be in our mathematical treatment on Mark-down;


Mark-down = Regular Price x Mark-down rate
Sale Price = Regular Price - Mark-down
Mark-down Rate = Mark-down
Regular Price
Regular Price = Sale Price________
100% - Mark-down Rate
Examples:
1. What are the mark-down and the sale price on an antique jar that that has a regular price of Php 35,800
and is on sale for 26% off the regular price?
Solution:
Given: Regular Price = Php 35, 800
Mark-down = 26% = 0.26

Mark-down = Regular Price x Mark-down Rate


Mark-down = 35,800 x 0.26
Mark-down = 9,308
Business Mathematics Page 6 of 7
Mark-on, Mark-up and Mark-down

Sale Price = Regular Price - Mark-down


Sale Price = 35,800 - 9,308
Sale Price = 26,492
Thus, the Mark-down is Php 9,308 and the Sale Price is Php 26,492.

2. An old LED TV model which was marked down at 20% is on sale for Php 70,265. Find the regular price.
Solution:
Given: Sale Price = Php 70,265
Mark-down Rate = 20%

Regular Price = Sale Price 80%


100% - Mark-down Rate Regular Price = 70,265
Regular Price = 70,265 0.80
100% - 20% Regular Price = 87,831.25
Regular Price = 70,265 Thus, the Mark-down is Php 87,831.25.

The following variables will be in our mathematical treatment on Mark-up;


SP = Selling Price Msp = Mark-up on selling price
C = Cost MR = Mark-up rate
M = Mark-up MRc = Mark-up rate on cost
Mc = Mark-up on cost MRsp = Mark-up rate on selling price
SP = C + M MRsp = Msp
SP
Mc = MRc x C SP = C + (C x MRc)
Msp = MRsp x SP
MRc = Mc C = SP
C 1 + MR
Business Mathematics Page 7 of 7
Mark-on, Mark-up and Mark-down

Examples:
1. A mathematics book cost the store manager Php 161 and he marked it up another Php 89. What was the
selling price of the book?
Solution:
Given: C = Php 161
M = Php 89
SP = C + M
SP = 161 + 89
SP = 250
Thus, the selling price of the mathematics book is Php 250.

2. RFS Sports Inc. sells home-gymnasium package for Php 175,000 and maintains a mark-up of 37% on
selling price. Find the mark-up value.
Solution:
Given: SP = Php 175,000
MRsp = 37% = 0.37
Msp = MRsp x SP
Msp = (0.37)(175,000)
Msp = 64,750

Thus, the mark-up value is Php 64,750

We had just finished on the discussion on Mark-on, Mark-up


and Mark-down. Let’s move on to the next higher level of
activity/ies or exercise/s that demonstrate your potential
skills/knowledge of what you have learned.

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