MARK – ON,

MARK – UP
AND
MARKDOWN
Learning Objectives:
At the end of the lesson,
the learners should be able
to
1. differentiate Mark-on,
Mark down and Mark-up
2. obtain Mark-on, Mark-
down, and Mark-up given
Pre-test
Directions: Choose the letter of
the correct answer.
1. Which of the following refers
to the sum of all the operating
expenses and profit?
a. mark-on c. mark-up
b. margin d. mark-down
Pre-test
2. A product originally costs
₱50 and is now sold at ₱100.
How many percent is the profit?
a. 25%
b. 50%
c. 75%
d. 100%
3. What is the sum of the mark-up
and the cost price?
a. cost c. profit
b. loss d. selling price
4. What do we call the additional
increase in the price of a product
during peak season?
a. mark-on c. margin
b. mark-up d. mark-down
5. When should you NOT impose
mark-on on your product?
a. During Christmas Holiday
b. When a calamity has recently hit
the area
c. When you need to sold out all your
products
d. When there is a limited supply for
raw materials
6. Which of the following mathematical
equations can we use to solve for the
mark-on?
a. MO = MU + S c. MO = NP – S
b. MO = S – MU d. MO = S – NP
7. Traders often lower their prices to get
rid of <poor-sale= products. What do we
call this price reduction?
a. mark-on c. mark-up
b. margin d. mark-down
8. Which among the following situations
does NOT encourage businessmen to
impose mark-down on their products?
a. Seasonal demands
b. Poor-sales of a product
c. The item is perishable and it needs to
be disposed
d. Competition against other sellers of
the same product
9. What do we call a mark-down
on a product that sometimes
results to a negative profit?
a. cost
b. loss
c. profit
d. selling price
10. Which of the following statements is
true?
a. Mark-on is the reduction of price on a
product.
b. Mark-down is the decrease of price on
a product.
c. Mark-up is the increase of price on
peak seasons.
d. Mark-up results to a negative profit in
the business.
11. Micah has a milktea shop that sells milktea for ₱85
for the regular-sized cup. However, she is not earning
enough to cover the expenses and thus results to zero
profit. What should she impose on her product to
address
this problem and since Milktea Festival is coming? Why?
a. Mark-on, she can increase the price anytime she
wants.
b. Mark-on, she can take advantage of the Festival to
earn more.
c. Mark-down, she can decrease the price and it will all
be sold out.
d. Mark-down, she can sell more if her products are
affordable.
12. Which of the following statements is ALWAYS
true?
a. Mark-on should be large enough to earn bigger.
b. Mark-down should be large enough to gain
profit.
c. Mark-up should be equal to the sum of all the
expenses.
d. Mark-up should be sizable enough to cover the
expenses.
13. What is the selling price of a t-shirt that costs
₱120 with a mark-up rate of 50%?
a. ₱150.00 c. ₱160.00
14. Bev brought a bracelet for only ₱48 which
was regularly priced at ₱60. What is the mark-
down rate of the bracelet?
a. 12% c. 48%
b. 20% d. 52%
15. On All Soul’s Day, Tris sells candles for ₱35
per pack. But on a regular day, she sells them at
₱20 per pack. How much is the mark-on she
imposed?
a. ₱10.00 c. ₱35.00
b. ₱15.00 d. ₱55.00
Answer Key: Pre-test
1. c 11. b
2. b 12. d
3. d 13. d
4. a 14. b
5. c 15. b
6. c
7. d
8. a
9. b
10. b
Base refers to the number that
represents a whole or 100%. It is usually
preceded by the word “of”.
Rate refers to that number which
represents a percent of another number.
It can be expressed as decimal, fraction
and percent.
Portion refers to that number that
represents part of a whole. It is usually
preceded by the word “is”.
When we compute for the portion, we
use the formula P = BR.
A. Identifying the base, rate and portion.
B. Identifying the given and solving for
the unknown.
1. 12 is what part of 40?
B. Identifying the given and solving for
the unknown.
2. 28 is 70% of what number?
B. Identifying the given and solving for
the unknown.
3. 60% of 320 is what number?
C. Analyzing the following problems
carefully and solving for what is being
asked.
1. On her 18th birthday, Sara received
₱5,000 from her Ninang Nena. She used
12% of the
money to buy books she needed in school.
How much did she spend?
2. There are 462 boys currently enrolled in
Grade 11 in a certain school. This
represents 35% of the total population of
C. Analyzing the following problems
carefully and solving for what is being
asked.
3. Deemps earned ₱8,000 from her
online selling. She made sure that
₱2,500 will be saved for her projects in
school. How many percent of her
earnings did she save?
Activity 1: Income Up, Income
Down
Directions: Analyze if the following
situations illustrate an increase or
decrease in income. If the problem
illustrates an increase in income, draw
a heart in the column with a happy
face. If the problem illustrates a
decrease in income, draw a heart in the
column with a sad face. After
Cost Price is the price that a company or store has to
pay for the goods it is going to sell or the price that
has to be spent to produce goods or services before
any profit is added. Baking ingredients for cookies and
raw materials in creating bracelets are some
examples that comprise the cost price.
Operating Cost is the price spent relative to the
production and sale of commodity. For example, the
operating cost in selling cookies would be the fare in
buying the ingredients, the rent for the store, the
packaging, and the bills.
Profit is the money earned after the cost price and
the operating costs accounted for after the sale of a
commodity. It is the difference between the selling
Selling Price is the price in which the
commodity or good is sold per unit. To
compute for the selling price:
SELLING PRICE = Cost Price + Operating
Expenses + Profit
S = C+ E + P
Where,
S = Selling Price
C = Cost Price
E = Operating Expenses
P = Profit
 Selling Price = Cost +
Mark-up
Mark-up = Selling Price –
Cost
Cost = Selling Price – Mark-
up
 MARK-UP ON COST

Cost + Mark-up = Selling

Price
Cost = 100%
Duke’s photography pays $9 for a
portrait. If it was sold for $15,
what is the rate of mark-up based
on cost?
COST 100%
MARK –
UP
SELLING
PRICE
Lander buys tea for $4 a box and
sells it in their store for $12.
Find the rate of mark-up based
on cost.
COST 100%
MARK –
UP
SELLING
PRICE
Find the cost of a pair of shoes
that has been marked up $25 and
has a mark-up rate of 50%.

COST 100%
MARK –
UP
SELLING
PRICE
What is the selling price for a CD
which costs the retailer $8.00
and is marked up 60% based on
cost?
COST 100%
MARK –
UP
SELLING
PRICE
MARK-UP ON SELLING PRICE

Cost + Mark-up = Selling

Price
Selling Price = 100%
A calculator costs $5 and sells for
$10. Find the rate of mark-up
based on the selling price.

COST
MARK –
UP
SELLING
100%
PRICE
Find the cost of a souvenir item
with a mark-up $14 and a rate of
35% based on selling price.

COST
MARK –
UP
SELLING
100%
PRICE
A pair of socks which has been
marked up $3 and with a mark-up
rate of 60% based on selling
price.
COST
MARK –
UP
SELLING
100%
PRICE
 MARKDOWN

Reduced price = Original price -

Markdown

Original price = 100%

A lamp originally sold for $36 and
is
marked down to sell for $30. Find
the
ORIGINAL
markdown and 100%
rate of
PRICE
markdown.
MARKDOWN
REDUCED
PRICE
Given an original price of $240
and a markdown of $96, what is
the rate of markdown and the
reduced price?
ORIGINAL
100%
PRICE
MARKDOWN
REDUCED
PRICE
SHORT QUIZ
1. Find the cost and markup of a
bicycle tire which sells for $180
and is marked up 50% of the
cost.
COST 100%
MARK –
UP
SELLING
PRICE
2. A store buys $12 a pair for
customized boxes and sells them
at a 40% markup based on cost.

COST 100%
MARK –
UP
SELLING
PRICE
3. What is the selling price for a
set of earphones which cost the
$12.00 and is marked up 150%
based on cost?
COST 100%
MARK –
UP
SELLING
PRICE
4. Find the amount of mark-up
for a box of chocolate that costs
$8 with a mark-up rate 75% on
the selling price.
COST
MARK –
UP
SELLING
100%
PRICE
5. Find the selling price for a pair
of jeans which costs the retailer
$28 at 30% mark – up on selling
price.
COST
MARK –
UP
SELLING
100%
PRICE
Activity 2: Mark Me Up!
Directions: Complete the table by solving for the
cost, selling price, mark-up, mark-up based on cost or
mark-up based on selling price using the given data.
Activity 3: Do Let Me Down!
Directions: Complete the table by solving for the
original price, selling price, mark down, or mark-down
rate using the given data.
Activity 4: Peak Me Up!
Directions: Using the given data, complete the table
by identifying the product commonly sold and the
season or event when the product is sold. Also, solve
for the selling price, new selling price or mark-on.
ANSWER KEY:
Activity 2: Activity 4:
1. P65, 21.67%, 17.81% 1. Valentine’s Day, P400
2. P480, 25%, 20% 2. School Supplies, P15
3. P220, 83.3%, 45.45% 3. Fireworks, P35
4. P27, 16.67% 4. All Soul’s/Saint’s Day, P10
5. P151.2, P163.8, 108.3% 5. Graduation, P38
Activity 3:
1. P40, 12.5%
2. P375, P75
3. P560, 13.04%
4. P1,120, 28.57%
5. P50, 8%