Business

Mathematics
 Business Mathematics

Mark-on, Mark-up, and

Cost Price
is the total cost involved in a selling product purchase
price (fixed cost) and all other expenses (variable cost) that
are incurred before the product is sold.
 Business Mathematics
Mark-up
is the difference between the selling price and the cost
price. It is computed based on the mark-up percentage.

Mark-up Amount = Selling Price – Cost Price

Mark-up Amount % =
 Business Mathematics
Examples:
1.)
How much must be the selling price of a computer table
with s cost price of Php 525 if the desired mark-up percent is
28%?
Given:
 Business Mathematics
Examples:
1.)
How much must be the selling price of a computer table
with s cost price of Php 525 if the desired mark-up percent is
28%?
Given: CP = Php 525
 Business Mathematics
Examples:
1.)
How much must be the selling price of a computer table
with s cost price of Php 525 if the desired mark-up percent is
28%?
Given: CP = Php 525 MU% = 28%
 Business Mathematics
Examples:
1.)
How much must be the selling price of a computer table
with s cost price of Php 525 if the desired mark-up percent is
28%?
Given: CP = Php 525 MU% = 28% SP = ?
Solution:
MU = MU% x CP
 Business Mathematics
Examples:
1.)
How much must be the selling price of a computer table
with s cost price of Php 525 if the desired mark-up percent is
28%?
Given: CP = Php 525 MU% = 28% SP = ?
Solution:
MU = MU% x CP = 0.28 (525)
 Business Mathematics
Examples:
1.)
How much must be the selling price of a computer table
with s cost price of Php 525 if the desired mark-up percent is
28%?
Given: CP = Php 525 MU% = 28% SP = ?
Solution:
MU = MU% x CP = 0.28 (525) = Php 147
MU = SP – CP
 Business Mathematics
Examples:
1.)
How much must be the selling price of a computer table
with s cost price of Php 525 if the desired mark-up percent is
28%?
Given: CP = Php 525 MU% = 28% SP = ?
Solution:
MU = MU% x CP = 0.28 (525) = Php 147
MU = SP – CP -----> SP = MU + CP
SP = 147 + 525
 Business Mathematics
Examples:
1.)
How much must be the selling price of a computer table
with s cost price of Php 525 if the desired mark-up percent is
28%?
Given: CP = Php 525 MU% = 28% SP = ?
Solution:
MU = MU% x CP = 0.28 (525) = Php 147
MU = SP – CP -----> SP = MU + CP
SP = 147 + 525 = 672
 Business Mathematics
Examples:
2.)
How much was the cost of a backpack sold for Php
381.90 if the mark-up percentage is 34%?
Given:
 Business Mathematics
Examples:
2.)
How much was the cost of a backpack sold for Php
381.90 if the mark-up percentage is 34%?
Given: SP = Php 381.90
 Business Mathematics
Examples:
2.)
How much was the cost of a backpack sold for Php
381.90 if the mark-up percentage is 34%?
Given: SP = Php 381.90 MU% = 34%
 Business Mathematics
Examples:
2.)
How much was the cost of a backpack sold for Php
381.90 if the mark-up percentage is 34%?
Given: SP = Php 381.90 MU% = 34% CP = ?
Solution:
MU = MU% x CP
 Business Mathematics
Examples:
2.)
How much was the cost of a backpack sold for Php
381.90 if the mark-up percentage is 34%?
Given: SP = Php 381.90 MU% = 34% CP = ?
Solution:
MU = MU% x CP -----> MU = 0.34CP
 Business Mathematics
Examples:
2.)
How much was the cost of a backpack sold for Php
381.90 if the mark-up percentage is 34%?
Given: SP = Php 381.90 MU% = 34% CP = ?
Solution:
MU = MU% x CP -----> MU = 0.34CP -----> Eq. 1
SP = MU + CP
 Business Mathematics
Examples:
2.)
How much was the cost of a backpack sold for Php
381.90 if the mark-up percentage is 34%?
Given: SP = Php 381.90 MU% = 34% CP = ?
Solution:
MU = MU% x CP -----> MU = 0.34CP -----> Eq. 1
SP = MU + CP -----> CP = SP – MU
CP = 381.90 – 0.34CP
 Business Mathematics
Examples:
2.)
How much was the cost of a backpack sold for Php
381.90 if the mark-up percentage is 34%?
Given: SP = Php 381.90 MU% = 34% CP = ?
Solution:
MU = MU% x CP -----> MU = 0.34CP -----> Eq. 1
SP = MU + CP -----> CP = SP – MU
CP = 381.90 – 0.34CP -----> CP + 0.34CP = 381.90
1.34CP = 381.90
 Business Mathematics
Examples:
2.)
How much was the cost of a backpack sold for Php
381.90 if the mark-up percentage is 34%?
Given: SP = Php 381.90 MU% = 34% CP = ?
Solution:
MU = MU% x CP -----> MU = 0.34CP -----> Eq. 1
SP = MU + CP -----> CP = SP – MU
CP = 381.90 – 0.34CP -----> CP + 0.34CP = 381.90
1.34CP = 381.90 -----> CP = 285
 Business Mathematics
Mark-on
is a temporary mark-up on certain products to take advantage
of the high demand during peak sales like the weeks prior to
Christmas, opening of classes, Valentine’s day, graduation month,
etc.
Mark-on is used to temporarily maximized earnings and the
price is usually returned to its original selling price when the demand
for the product is on a normal level.
Mark-on Amount = New Selling Price – Current Selling Price or
Mark-on Amount = Mark-on% x Current Selling Price
 Business Mathematics
Examples:
1.)
A fast-selling item in department store is currently being
sold for Php 675.35. Because of high demand for the item,
the store decided to apply a mark-on percentage of 22%. Find
the new selling price.
Given:
 Business Mathematics
Examples:
1.)
A fast-selling item in department store is currently being
sold for Php 675.35. Because of high demand for the item,
the store decided to apply a mark-on percentage of 22%. Find
the new selling price.
Given: SPC = Php 675.35
 Business Mathematics
Examples:
1.)
A fast-selling item in department store is currently being
sold for Php 675.35. Because of high demand for the item,
the store decided to apply a mark-on percentage of 22%. Find
the new selling price.
Given: SPC = Php 675.35 MO% = 22%
 Business Mathematics
Examples:
1.)
A fast-selling item in department store is currently being
sold for Php 675.35. Because of high demand for the item,
the store decided to apply a mark-on percentage of 22%. Find
the new selling price.
Given: SPC = Php 675.35 MO% = 22% SPN = ?
Solution:
SPN = SPC (1 + MO%)
 Business Mathematics
Examples:
1.)
A fast-selling item in department store is currently being
sold for Php 675.35. Because of high demand for the item,
the store decided to apply a mark-on percentage of 22%. Find
the new selling price.
Given: SPC = Php 675.35 MO% = 22% SPN = ?
Solution:
SPN = SPC (1 + MO%) = 675.35 (1 + 0.22)
 Business Mathematics
Examples:
1.)
A fast-selling item in department store is currently being
sold for Php 675.35. Because of high demand for the item,
the store decided to apply a mark-on percentage of 22%. Find
the new selling price.
Given: SPC = Php 675.35 MO% = 22% SPN = ?
Solution:
SPN = SPC (1 + MO%) = 675.35 (1 + 0.22) = 675.35 (1.22)
= 823.93
 Business Mathematics
Mark-down
is a reduction in the selling price of the merchandise. The cause
of a markdown may be to stimulate the sale of the slow-moving
products. Some may use mark-down to drive competitors out of
business.
Mark-down Amount = Current Selling Price – New Selling Price
or
Mark-down Amount = Mark-down% x Current Selling Price
 Business Mathematics
Examples:
1.)
How much markdown percentage was applied to a
jacket whose previous price of Php 798 is now sold for
654.36?
Given:
 Business Mathematics
Examples:
1.)
How much markdown percentage was applied to a
jacket whose previous price of Php 798 is now sold for
654.36?
Given: SPC = Php 798
 Business Mathematics
Examples:
1.)
How much markdown percentage was applied to a
jacket whose previous price of Php 798 is now sold for
654.36?
Given: SPC = Php 798 SPN = Php 654.36
 Business Mathematics
Examples:
1.)
How much markdown percentage was applied to a
jacket whose previous price of Php 798 is now sold for
654.36?
Given: SPC = Php 798 SPN = Php 654.36 MD% = ?
Solution:
MD% =
 Business Mathematics
Examples:
1.)
How much markdown percentage was applied to a
jacket whose previous price of Php 798 is now sold for
654.36?
Given: SPC = Php 798 SPN = Php 654.36 MD% = ?
Solution:
MD% = =
 Business Mathematics
Examples:
1.)
How much markdown percentage was applied to a
jacket whose previous price of Php 798 is now sold for
654.36?
Given: SPC = Php 798 SPN = Php 654.36 MD% = ?
Solution:
MD% = = =
 Business Mathematics
Examples:
1.)
How much markdown percentage was applied to a
jacket whose previous price of Php 798 is now sold for
654.36?
Given: SPC = Php 798 SPN = Php 654.36 MD% = ?
Solution:
MD% = = = = 0.18 or 18%
 Business Mathematics
Examples:
2.)
Find the previous selling price of a shirt which is now
sold at Php 219 which was given a mark-down percentage of
27%.
Given:
 Business Mathematics
Examples:
2.)
Find the previous selling price of a shirt which is now
sold at Php 219 which was given a mark-down percentage of
27%.
Given: SPN = Php 219
 Business Mathematics
Examples:
2.)
Find the previous selling price of a shirt which is now
sold at Php 219 which was given a mark-down percentage of
27%.
Given: SPN = Php 219 MD% = 27%
 Business Mathematics
Examples:
2.)
Find the previous selling price of a shirt which is now
sold at Php 219 which was given a mark-down percentage of
27%.
Given: SPN = Php 219 MD% = 27% SPP = ?
Solution:
MD% =
 Business Mathematics
Examples:
2.)
Find the previous selling price of a shirt which is now
sold at Php 219 which was given a mark-down percentage of
27%.
Given: SPN = Php 219 MD% = 27% SPP = ?
Solution:
MD% = -----> SPP =
SPP =
 Business Mathematics
Examples:
2.)
Find the previous selling price of a shirt which is now
sold at Php 219 which was given a mark-down percentage of
27%.
Given: SPN = Php 219 MD% = 27% SPP = ?
Solution:
MD% = -----> SPP =
SPP = = 300
 End of the lesson…
Thank you and God bless…