BUSINESS
MATHEMATICS
Differentiate mark-on, mark-up, and mark-down
MELCS
ABM_BM12RP-I: Differentiate
mark-on, mark-up, and mark-
down.
OBJECTIVES
At the end of the lesson, the students should
be able to:
1. Define and explain mark-on, mark-up, and
mark-down.
2. Differentiate among the three pricing
methods.
3. Solve word problems involving mark-on,
mark-up, and mark-down.
4.Appreciate the importance of proper pricing
in business.
Have you ever bought
something on sale? Or have
you helped your parents sell
goods at a higher price to
earn profit?
What is the
difference
between cost price
and selling price?
Mark-On
Adding a fixed
amount or percentage
to the cost price to
get the selling price.
Formula:
Selling Price = Cost Price + Mark-On
Example:
Cost price = P100
Mark-on = 20%
Selling price = P100 + (20% of P100) =
P120
Example: (Fixed Peso Mark-On):
A store buys a bag for P500.
They want to add a P100 mark-
on.
Example 2: (Percentage Mark-
On):
A business buys a cellphone for
P10,000 and wants a 20%
mark-on.
Why is Mark-On Important?
It helps a business cover costs and
earn a profit.
It’s a simple and clear method of
pricing that starts from what the
business spent.
It ensures that every product sold will
bring back what was spent, plus extra.
Mark-Up:
Similar to mark-
on but computed
based on the
selling price.
Example:
Selling price = P120
Mark-up = 20% of selling price
Cost = P96 (P24 is 20% of
120)
Formula:
If you know the Selling Price and Mark-
Up Rate:
Cost Price = Selling Price × (1 − Mark-Up %)
Mark-Up Amount = Selling Price × Mark-Up %
If you know the Cost Price and want to
find the Selling Price:
Selling Price = Cost Price ÷ (1 − Mark-Up %)
Example 1: (Markup on Selling
Price):
Let’s say you want a 25%
mark-up and you plan to sell a
product for P800
Example 2: (Find Selling Price given
Cost and Mark-Up %):
Let’s say you bought an item
for P400, and you want a 20%
mark-up based on selling price.
Why is Mark-Up Important?
It’s widely used in retail stores to
ensure they earn enough profit.
It helps sellers know how much
profit they make per sale.
It’s practical in pricing strategies
where the final price is fixed or
dictated by the market.
MARK-DOWN
A reduction from
the original price
(usually to attract
buyers or clear old
stock).
Formula:
Mark-Down Amount = Original Price x Mark-
Down %
New Selling Price = Original Price – Mark-Down
Amount
EXAMPLE
Original Price = P200
Mark-down = 25%
New Selling Price =
P200 –P50 = P150
Example 1:
A jacket originally
costs P2,000. It’s
now on 30% mark-
down.
Example 2:
A store is clearing
stock. A phone priced
at P15,000 is marked
down by 10%.
Why is Mark-Down Important?
It helps increase sales during slow
months.
It encourages customers to buy more.
It prevents loss from unsold or
outdated products.
It’s a marketing strategy (e.g., “Buy
now, 50% off!”)
COMPARISON TABLE
Term Based On Direction Used For
Mark-On Cost Price Add Setting
price from
cost
Mark-Up Selling Price Add Profit
margin from
Selling Price
Mark- Selling Price Subtract Discount or
Down Sale
ACTIVITY
1. A product cost
P300. If the business
wants a 25% mark-
on, what is the
selling price?
2. A store wants to earn
30% profit based on the
selling price. If the selling
price is P500, what is the
mark-up and cost?
3. A P600 jacket is
on 40% sale. What
is the new price?
APPLICATIO
N
You’re a store owner. Choose
a product and:
Set a cost price.
Apply a mark-on of 20%
Determine your selling price.
Then imagine giving a 10%
mark-down for a sale.
ASSESSMEN
T
1. Which pricing method is based on cost
price?
2. What do we call the deduction made
during a sale?
3. Compute: A P500 product is marked
down by 20%. What’s the new price?
4. If your cost in P400 and you add 25%
mark-on, what’s your selling price?
5. If the selling price is P800 and mark-up
is 20%, what’s the cost?
What are the three
pricing methods we
discussed?
Why is it important for a
seller to understand
mark-on, mark-up, and
mark-down?
