Buying and Selling

The learners will be able to

 define mark-on, mark-down and mark-up;
 differentiate mark-on, mark-down and mark-up;
 explain the reasons for using mark-on, mark-down
and mark-up;
 determine the selling price, sale price or peak
price of an item given existing conditions;
 compute for the mark-up percentage of given
commodities or services based on stated
conditions;
Cite some small and big businesses
that you are familiar with in your area.

What are the main products or

services which the said business is
known for?
Group Activity #2
Example:
 Students will sell banana cue.
 What are the basis for determining how much they should sell a stick of
banana cue for?
 When is the best time to sell those banana
cue? Why?
 Estimate the cost of the raw materials you will
need.
 How many sticks of banana cue do you
intend to sell per day?
 Estimate the materials needed per day.
 Determine the cost of raw materials.
Account the other additional expenses.
Based on the estimates, discuss the
intended selling price of your product.
Justify and defend your selling price.
What is cost 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.
What is operating
price?
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
SELLING PRICE = COST PRICE + OPERATING COST + PROFIT

S=C+E+P
Where: S = Selling Price
C = Cost Price
E = Operating Expenses
P = Profit
PROFIT
money earned after the
cost price and the
operating costs are
accounted for after the
sale of a commodity
MARK-UP
the difference between the
selling price and the cost price
sometimes referred to as
MARGIN or GROSS PROFIT
MARK-UP
Tocompute for the MARK-UP:
MARK-UP = SELLING PRICE – COST PRICE

Rate of Mark-up
𝑴𝑼
MUC% = x 100%
𝑪
Example:
1. Aling Ana would like to sell little trinkets she
purchased from Divisoria for PhP12 each. If
the operating cost is set at 25% of the cost
and she would like to have a 15% profit on
the cost of each item,
 a. Determine the mark-up price for each
trinket.
 b. Help Aling Ana determine the selling
price for each trinket.
2. A jacket which costs PhP1,350 is
being sold at PhP2,025. What is the
rate of mark-up based on cost?
3. Julia buys a notebook with a cost
of PhP45. The rate of mark-up based
on cost is 25%. Find the selling price
and the mark-up
4. Peter decides to impose a mark-up
of PhP5 on each pen he sells to his
classmates and friends. This
represents a 20% mark-up based on
the selling price. Find the cost and
the selling price of the pens Peter sells
MARK ON
MARK-ON = PEAK SELLING PRICE – REGULAR SELLING PRICE
MO = PS – S
PS = Peak Selling Price
S = Regular Selling Price
1. Manang Crising observes that market goers
prefer to buy fish from her because there is an
undersupply 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
PHP90 per kilo with a 35% mark-up, what is its new
selling price with the additional increase of PHP10?
By how much is the rate of mark-up based on cost
increased by adding PHP10 to the regular selling
price of the galunggong?
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
PhP15,000 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?
3. Find the regular selling price and the
cost price of memorabilia items being
sold for PhP500 if the mark-up is set at a
rate of 25% of the cost price with an
approved 15% mark-on rate based on
the cost price included because of a
special event.
MARK-DOWN
MARK-DOWN
the difference between the REGULAR
SELLING PRICE and the SALE PRICE
 What are the other reasons
why a mark-down is
sometimes thought of as an
option for a business
owner?
 the item is a perishable item and it is best to
dispose of it sooner than simply throw it away

 the item has become dirty or worn out, or

possibly out of style

 competition forces the marking down of an

item
REMEMBER:

Rates of mark-downs are always

computed based on the selling
price.
LOSS - selling an item on sale
sometimes gives rise to a
negative profit.
BREAK-EVEN PRICE - an item is
given a selling price where the
profit ends up being zero.
Break-Even Price = Cost Price + Operating Cost
BEP = C + E
Where:
BEP = Break-Even Price
C = Cost Price
E = Operating Expenses
Examples:
1. Carlo was able to buy a pair of shoes
regularly priced at PhP3,500 for only
PhP2,100.
a. What was the amount of the mark-
down?
b. b. What was the rate of the mark-down?
2. During a Midnight Madness Sale, a
board game regularly priced at PhP8,500
was sold at 55% discount. The cost of the
board game is PhP3,450 and expenses
are 14% of the regular selling price.
a. What was the amount of the mark-
down?
b. b. What was the rate of the mark-
down?
3. Super Mall paid PhP15,000 for a set of
dishes. Expenses are 18% of the selling
price while the required profit is 15% of the
selling price. During an inventory sale, the
set of dishes was marked down by 30%.
a. What was the regular selling price?
b. What was the sale price?
c. What was the profit or loss?