11

Department of Education
National Capital Region
S CHOOLS DIVIS ION OFFICE
MARIK INA CITY

BUSINESS MATHEMATICS
Quarter 1: Module 7
• Profit or Loss
• Break-even Point

Writer: Maritess S. Zara

Cover Illustrator: Joel J. Estudillo

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 What I Need to Know

This module is designed and written with you in mind. It is here to help you
master the topic Buying and Selling. The scope of this module is to differentiate
profit from loss, illustrate how profit is obtained, how to avoid loss from the
given transaction, and determine the break-even point.

The main goal of every business

is to gain profit. However, we
must always consider that not all
businesses became successful.
For some, a return of investment
was attained, but for others, more
unsatisfactory or even damaging
business outcomes took place.
There are a lot of things that we
must consider and understand
before we put up a business. What you will learn now is how to differentiate profit
from loss, compute for the profit as well as the loss, and determine the break-even
point in a business.

This module is divided into two lessons, namely:

Lesson 1. Profit or Loss

Lesson 2. Break-even Point

After going through this module, you are expected to:

1. differentiate profit from loss;

2. illustrate how profit is obtained and how to avoid loss in a given
transaction; and
3. compute the break-even point.

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 What I Know
Read and answer each item carefully. Choose the letter of the right answer.

A. The money earned after the direct cost and the indirect cost are accounted for
after the sale of a commodity is called _______________________________.
A. Cost Price C. Operating expenses
B. Loss D. Profit

B. It occurs when the cost and expenses exceeded the selling price or sales.
A. Cost Price C. Operating expenses
B. Loss D. Profit

C. Mr. Santos bought 120 pieces of ball pen for Php 650 and sells each for Php5.
Find the loss or profit in selling the ball pen.
A. Gain – Php 50 C. Loss – Php 50
B. Gain – Php 75 D. Loss – Php 75

D. What is the selling price of an outdated bag if its cost is Php 700 and loss
percentage is 20%?
A. Php 560 C. Php 580
B. Php 570 D. Php 590

E. Mr. Rivera bought 5 dozens eggs for Php 420 which he sells for Php 9 each. If
6 of the eggs got broken, did he gain or lose in selling egg? By how much?
A. Gain Php 66 C. Loss Php 42
B. Gain Php 78 D. Loss Php 66

F. Eleonor sold a bracelet to Carol with a markup rate of 15%. Afterwards, Carol
sold it to Delia and incurred a loss of 10%. If Delia paid the bracelet for 1400,
how much is the cost of the bracelet?
A. Php 1322.66 C. Php 1342.66
B. Php 1332.66 D. Php 1352.66

G. What is the loss percent if the retailer sells the book for Php 450, which is
bought for Php 500?
A. 8% C. 10%
B. 9% D. 11%

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 H. Aaron gained 20% in selling the study table for Php 3800. What is the cost of
the study table? (Roundoff your answer to whole number)
A. Php 3167 C. Php3187
B. Php 3177 D. Php 3197

I. A jeweler sold two necklaces for Php 1500 each. He gained 10% on the first
necklace but lost 10% on the other. Find the cost of the two necklaces.
A. Php 1363.64, Php 1650 C. Php 1350, 1666.67
B. Php 1363.64, Php 1666.67 D. Php 1400, 1666.67

J. How much did the jeweler in problem 9 gain and lose in selling the necklace?
A. Gain–Php136.36, Loss–150 C. Gain-Php150, Loss-166.67
B. Gain–Php136.36, Loss–166.67 D. Gain-Php100, Loss-166.67

What’s In
Add/subtract the following integers:

Addition Answer Subtraction Answer

1) -12 + 23 6) (-12) – (11)

2) -11 + -25 7) (-24) – (-24)

3) 23 + -50 8) (-11) – (25)

4) -22 + 22 9) (-25) – (-25)

5) 33 + -11 10) (13) – (50)

Lesson 1 PROFIT or LOSS

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 What’s New
Stephany wants to earn money
during the summer vacation so she
decided to sell mango juice in her
neighborhood. It costs her Php 250 for
the raw materials and other operating
expenses. Unfortunately, it rained, so
she only sold Php 20 glasses of juice for
Php 10 each.

file:///D:/desktop%20folder%2007182020/ADM%20(module%20in%2
0Business%20Math)/ADM%20output/ADM8/juice.pdf

Guide questions:
1. Do you think Stephany gained profit in selling mango juice? Explain.
2. How much did she earn/lose in selling mango juice?

What Is It
In the previous lesson, you learned how to compute the profit you will
gain in buying and selling business. But what if your product did not sell-out?
What will happen to the cost of goods sold and other expenses you spent? In
this lesson, you will learn the bigger view and other possibilities in dealing with
the business world specifically in buying and selling.

When we talk about profit, we are talking about the money earned after
the cost price (direct cost) and the other operating costs (indirect cost) are
accounted for after the sale of a commodity. It is computed by subtracting the
cost price (indirect cost) and other operating expenses (direct cost) from the
selling price. It is similar to how loss is computed; however, loss occurs when
the cost and expenses exceed the selling price or sales, or in other words, we
get a negative result.

Profit or Gain happened when; Selling Price > Cost Price (Positive result)
or Gain = Selling Price – Cost Price

Loss happened when Selling price < Cost Price (Negative result)
Loss = Cost Price – Selling Price
Example 1: Vincent purchased 20 kilos of banana for Php 50 per kilo at cost.
He was able to sell 12 kilos of it for Php 70. Unfortunately, the remaining
bananas became overripe so he needs to sell it for a lower price of Php 40 per

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DISCIPLINE • GOOD TASTE • EXCELLENCE
kilo. How much did he gain by selling the initial 12 kilos? How much did he
lose in the remaining 8 kilos? After computing all his sales, did he gain or lose
in selling bananas? By how much?

Solution: Profit = Revenue – Total Cost

P = R – TC

If X units are sold by the business entity, revenue is computed by

multiplying the selling price (S) by X. The Total Cost Price is also determined
by multiplying X by cost per unit (C).

R=SX
TC = C  X
The equation now becomes:

P=SX-CX
Where: P = Profit
S = Selling price per unit or the unit price
C = Cost Price per unit
X = number of units sold
Profit = 12(70) – 12(50)
= Php 840 – 600
= Php 240
Loss = 8(40) – 8(50)
= 320 - 400
= (Php 80)
Profit/Loss = Php 240 – 80
= Php 160 he still gains by Php 160

Example 2: Victor bought a second-hand motorcycle for Php 20000 and spent
Php 8000 for repair and another 4000 for repainting. He then sold it to Jose
for only Php 30000 based on its market value. How much did he gain or lose?
Find his profit or loss percent.
Solution: Total Cost = 20000 + 8000 + 4000
= 32000

Profit/Loss = Selling Price – cost price

= 30000 – 32000
= (Php 2000) amount of loss

𝑡𝑜𝑡𝑎𝑙 𝑙𝑜𝑠𝑠 2000

Percent of Loss = = = 0.0625 𝑜𝑟 6.25%
𝑡𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 32000
Example 3: Emily bought two shirts amounting to Php 420 and Php 400
respectively. If she gains 15% from selling the first shirt and losses 20% on

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DISCIPLINE • GOOD TASTE • EXCELLENCE
the second shirt, how much did she gain or lose? Find his gain or loss percent
for the whole transaction.

Solution. First shirt: Php 420 x 0.15 = Php 63 gain

Second shirt: Php 400 x 0.20 = (Php 80) loss
Overall transaction: Php 63 – 80 = (Php 17) Loss
Total Cost = Php 420 + 400 = Php 820
𝑇𝑜𝑡𝑎𝑙 𝑙𝑜𝑠𝑠 17
Percent of loss = = = 0.0207 𝑜𝑟 2.07%
𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 820

Example 4: The store owner markup his product by 45% based on the cost
price. Then, during an inventory sale, he allows a 30% discount. What is the
gain percent?

Solution. Let the cost price be Php 100

Markup = 0.45(100) = Php 45
Markup price = Php 100 + 45 = Php 145
Discounted price = Php 145 x 0.70 = Php 101.50
Gain/Loss = Php 101.5 – 100 = Php 1.5

1.5
Gain Percent = = 0.015 𝑜𝑟 1.5%
100

Example 5: Rose losses 5% after selling a calculator for Php 950 due to small
scratches. At what price must she sell the other calculator with the same cost
to gain 30%?

Solution: Php 950 is only 95% of the cost of the calculator

950
Cost = = Php 1000 Total cost of calculator
0.95

To gain 30% based on cost:

Selling price = Php 1000 + (1000 x 0.3)
= Php 1000 + 300 = Php 1300

or Selling price = 1.3 x 1000 = Php 1300

To avoid losses in any transaction, you must consider other expenses

incurred while purchasing or selling the item like transportation expenses,
repair charges, rent, use of equipment, etc. These additional expenses are
called overheads and must be added to the cost price before computing for
the selling price. That is also the reason why we compute the profit based on
gross margin instead of markup.

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 What’s More
The table below shows equations that have missing data. Compute the given
data to complete each equation.

Selling price – Cost price = Profit (if positive result)

or Loss (if negative result)
Selling Price Cost Price Profit Loss

1 Php 1899 Php 1499

2 845 Php 250

3 9555 Php 105

4 11300 1200

5 149 25

6 1350 366

7 1100 285

8 11300 300

9 18300 3500

10 19500 21300

What I Have Learned

Complete the following statements with the correct or appropriate words or
phrases.

1. The money earned after the cost price (direct cost) and other operating costs
(indirect cost) are accounted for after the sale of a commodity is
called________________________.

2. ___________________ occurs when the cost and expenses exceed the selling
price or sales.

3. ___________________ happened when Selling Price > Cost Price.

4. __________________ happened when Selling Price < Cost Price.

5. The main objective or goal of every business is to ____________________.

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 What I Can Do
Performance Task: (10 points)

Let us assume that your mother is a fruit vendor and she regularly
encounters gain and loss in selling fruits. Your task is to enumerate six (6) fruits
that your mother is selling and write the possible profit and loss she may
encounter using the table below. Then, compute the total loss and gain in selling
fruits. The first item is provided for you.

Fruits Total Sales Total Cost Profit Loss

1.Pineapple-30pcs Php 1200 Php 1350 Php 150

2.

3.

4.

5.

6.

Total Profit/Loss

Combining all the transactions, does your mother experience gain or loss?
________________ By how much? __________________________.

Rubric for the output:

Needs
Excellent Very Good Fair
Criteria Good (3) improvement
(5) (3) (2)
(1)
Not
Realistic Realistic Not realistic
Realistic/ Very realistic realistic
and but not and not
Original and original but
original original original
original
All Committed 4
Correct Committed Committed Committed
computations or more
computation 1 mistake 2 mistakes 3 mistake
are correct mistakes

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 Assessment
Read and answer each item carefully. Choose the letter of the right answer.

1. It occurs when the cost and expenses exceed the selling price or sales.
A. Cost Price C. Operating expenses
B. Loss D. Profit

2. The money earned after the cost price (direct cost) and the other operating
costs (indirect cost) are accounted for after the sale of a commodity is called
__________________.
A. Cost Price C. Operating expenses
B. Loss D. Profit

3. Aaron gains 30% in selling a bookshelf for Php 4500. What is the cost of
bookshelf? (Round-off your answer to whole number)
A. Php 3462 C. Php 3482
B. Php 3472 D. Php 3492

4. What is the loss percent if the retailer sells a pair of rubber shoes for Php
1460, which was bought for Php 1825?
A. 20% C. 23%
C. 21% D. 25%

5. Mr. Santos bought 100 pieces of notebook for Php 2000 and sold each for
Php23. Find the loss or profit in selling the notebook.
A. Gain – Php 250 C. Loss – Php 250
B. Gain – Php 300 D. Loss – Php 300

6. What is the selling price of an outdated jacket if its cost is Php 550 and loss
percentage is 24%?
A. Php 398 C. Php 418
B. Php 408 D. Php 428

7. Mr. Tan bought 3 dozens of roses for Php 720 which he now sells for Php24
each. If 7 of the roses wither, did he gain or loss in selling rose? By how
much?
A. Gain Php 24 C. Loss Php 24
B. Gain Php 42 D. Loss Php 42

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DISCIPLINE • GOOD TASTE • EXCELLENCE
8. Arman sold a chess board to Noel with a markup rate of 12%, Noel then sold
it to Victor and incurred a loss of 10%. If Victor paid the chess board for 1200,
how much is the cost of the chess board?
A. Php 1180.47 C. Php 1200.47
B. Php 1190.47 D. Php 1210.47

9. Ivy sold two cellphones for Php 13500 each. She gains 10% on the first
cellphone but losses 10% on the other. Find the cost of the two cellphones.
A. Php 11972.73, Php 14850 C. Php 12172.73, Php15000
B. Php 12072.73, Php 14850 D. Php 12272.73, Php15000

10. How much did the jeweler in problem 9 gain and loss in selling the cellphone?
A. Gain–Php1527.27, Loss–1350 C. Gain-Php1327.27, Loss1500
B. Gain–Php1427.27, Loss–1350 D. Gain-Php1227.27, Loss1500

Additional Activities

Solve the following problems. Round-off your answer to 2 decimal places.

1. Ron purchased a microwave oven for Php 5200 but due to some scratches
he had to sell it for Php 4000. Find his loss per cent.

2. The furniture store owner gains 15% in selling a table for Php 18000. For
how much should he sell it to gain 20%?

3. Your uncle is into buy and sell business. He purchased a used bicycle for
Php 3000 and spent Php 1200 to make it look cooler. If he sold the bicycle
for Php 3900, by how many percent did he gain or lose?

4. Elisa sold a television set for Php 11500 and lost 10% of cost due to some
damage. If she sells another television for Php 13500, find her gain or loss.

5. The gasoline station owner purchased gasoline for Php 35 per liter. Due to
the increase in demand for gas, the selling price of gasoline increases to Php
50 per liter, wherein 1000 liters were sold. Unfortunately, during the
pandemic, the selling price of gasoline went down to Php 30 per liter. After
that, the owner sold another 1000 liter.
a. How much did the owner gain or loss? B.
b. How many percent did he gain or loss?

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 What I Know
Read and answer each item carefully. Choose the letter of the right answer.

1. It happened when a business neither makes a profit or loss.

A. Break-even point C. Profit
B. Loss D. Revenue

2. It is also called as cash inflow or for sellers, it is simply the selling price of the
product.
A. Break-even point C. Revenue
B. Fixed cost D. Variable cost

3. The following are examples of variable cost, EXCEPT:

A. Advertising cost C. Manager’s salary
B. Cost of goods sold D. Sales commission

4. The costs that remain constant regardless of the unit volume.

A. Cost of goods C. Selling cost
B. Fixed cost D. Variable cost

5. Mr. Rivera bought 5 dozens eggs for Php 450 which he sells for Php9 each. If
10 of the eggs are broken, did he gain, loss, or break-even in selling egg?
A. Break-even C. Loss
B. Gain D. Cannot be determined

6. The merchandising firm incurred Php 15000 for rental fee, Php125000 for the
cost of goods, marketing cost of Php 10000, Php 30000 for regular employees'
salary, and Php 5000 utilities expenses. How much is the total fixed cost?
A. Php 30000 C. Php 50000
B. Php 45000 D. Php 125000

7. How much is the total variable cost in problem number 6?

A. Php 125000 C. Php 135000
B. Php 130000 D. Php 140000

8. If the unit price of a commodity is Php 25, variable cost is Php 17, and total
fixed cost is Php 10000, find the break-even points in units and in pesos.
A. 1100 units, Php 27500 C. 1200 units, Php 30000
B. 1150 units, Php 28750 D. 1250 units, Php 31250

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DISCIPLINE • GOOD TASTE • EXCELLENCE
9. The total sales of electric fan is Php 100 000 for 50 units. If the store’s variable
cost per unit is Php 1300 and the total fixed cost is 16000, what is the BEP in
units?
A. 21 C. 25
B. 23 D. 27

10. What is the BEP in pesos based on problem number 9?

A. Php 27300 C. Php 46000
B. Php 29900 D. Php 48000

What’s In
Find the unit price of the following. Round-up your answers to whole
numbers.

Merchandise/product Unit Price

1. 5 pieces of handkerchief for Php 250 Php

2. 1 dozen of egg for Php 96

3. 3 for Php 50 apple

4. 3 for Php 100 facemask

5. 20 ballpens for Php 120

6. 2 dozens of roses for Php 480

7. 1 ream of parchment paper for Php 499

8. 15 pieces of t-shirts for Php 4500

9. 14 microwave ovens for Php 88200

10. 50 pieces of PE uniform for Php 18500

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DISCIPLINE • GOOD TASTE • EXCELLENCE
Lesson 2 BREAK-EVEN POINT

What’s New

Cathy is new to the retail business

so she wanted to make sure that she will
not fail and lose her investment. If she is
selling turon for Php 10 each which costs
her Php 250 plus other operating expenses
amounting to Php 100, how many pieces of
turon must she sell to offset all her
expenses?

What Is It
You have learned in the previous lesson that profit can be obtained if the
selling price or sales is greater than the cost price and expenses. However, when
the cost and expenses exceed the selling price or sales, loss occurs. But what if
the sales of commodities are equal to the cost and expenses? What will happen to
the cost of goods sold and other expenses you spent? This scenario illustrates
the break-even point. The break-even point is a point where a business neither
makes a profit or loss. It happens when the revenue is equal to its total cost. The
following are the different terminologies associated with break-even analysis.

Revenue is also called cash inflow or for sellers, it is simply the total sales
of the product.

Fixed costs are the costs that do not change, remain constant regardless
of the unit volume. Examples are rent, managers’ salary, administrative cost,
janitorial services, etc.

Variable costs are costs that go up and down with sales. It varies with
direct proportion to quantity sold or unit volume. Examples are the cost of goods
sold, sales commission, company and credit card fees, advertising costs,
distribution costs, customer service costs, marketing costs, utilities expense, etc.

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 The Total Cost can also be determined by summing up all the variables
(VC) and fixed costs (FC), that is: TC = VC + FC.
To compute for break-even points, you need to consider the following:

At break-even, Profit = 0, thus:

Profit = Revenue – Total Cost, in symbol:

P = R – TC
0 = R – (VC + FC)
R = VC + FC

If X units are sold by the business entity, revenue is computed by

multiplying the selling price(S) by X. (Total) variable costs are also determined by
multiplying X by the variable cost per unit (V).
R=SX
VC = V  X
The equation now becomes:
S  X = V  X + FC
Where: S = Selling price per unit or the unit price
V = variable cost per unit
FC= is the total fixed cost
X = number of units

To compute the number of units to be sold in order to meet the break-even

point,
S  X = V  X + FC
S  X – V  X = FC
X (S – V) = FC
X = FC / (S – V)
FC
BEP in unit: x=
(S−V)

Note: BEP in unit should always be rounded-up to whole number even if the
fraction or decimal is closer to the lower whole number than the higher whole
number. (example: If the computed BEP in unit is 45.00001, round it up to 46.)
To compute the Break-even point (BEP) in pesos
BEP in pesos = Unit price x BEP in units

Example 1: Ms. Riza bought Php 150 pieces of bags for Php 52500. She also
incurred other expenses such as fixed cost for Php 15000 and other variable costs
for Php 5000. If Ms. Riza's total sales is Php 72500, did she gain, lose, or reach
the break-even point?
Solution: Sales = variable cost + fixed cost

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 = (52500 + 5000) + 15000
72500 = 72500
The result is breakeven

Example 2: Find the breakeven point in unit and in pesos of a coloring book if
the unit price is Php 50, variable cost is Php 30, and the fixed cost is Php 8000.

FC
Solution: BEP =
(S−V)
8000
BEP in units = = 400 units
(50−30)
BEP in pesos = BEP in units x unit price
= 400 x 50 = Php 20000

Example 3. The accessory store of Mr. Ramos purchased 500 pieces of bags for
Php 330 each. He also incurred other expenses for one month as follows:
Rent – Php15 000
Employees’ salary - 38 000
Utility expenses - 18 000

Find the break-even points in units and Pesos if the selling price of each bag is
Php 600.

FC
Solution: BEP =
(S−V)
Fixed Cost = Php 15000 + 38000 = Php 53000
Variable cost = 330 + (18000/500) = 330 + 36 = 366

53000
BEP = = 226.50 𝑜𝑟 227 units (BEP in units)
(600−366)
BEP in Pesos = Php 600 x 227 = Php 136200

Example 4: Let's say the break-even volume of sales is Php 120 000 (We may
assume that the calculated break-even point in units is 6000 units x sales price
of Php20 per unit).

Solution: Sales (or Revenue) = Variable costs + Fixed costs

Sales (Revenue) Php 120 000 (6000 units x Php 20 per unit)
Less:
Variable costs 72 000 (6000 units x Php 12 per unit)
48 000 (120 000 – 72 000)
Less:
Fixed Costs 48 000
Net Income Php 0 Break-even

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 What’s More
Compute the BEP in units and in pesos. BEP in units-round-up to whole
number/BEP in pesos round-off to whole number.

Unit Price Variable Cost Fixed Cost BEP in units BEP in pesos
Php 100 Php 59 Php 8000 1. 6.
1500 1120 16000 2. 7.
450 320 10000 3. 8.
60 45 8000 4. 9.
11600 10100 20000 5. 10.

What I Have Learned

Complete following statements with the correct words/phrases.

1. ____________________ happened when a business neither makes a profit or

loss or when the revenue is equal to its total cost.

2. ____________________ is also called cash inflow or the selling price of the

product.

3. The costs that do not change or remain constant regardless of the unit
volume is called __________________________________________.

4. The costs that go up and down with sales and varies with direct proportion
to quantity sold or unit volume is called __________________.

5. Identify the formula in computing the following:

a. Sales ___________________________________________________________

b. BEP per unit ___________________________________________________

c. BEP in pesos ___________________________________________________

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 What I Can Do
Performance Task: (10 points)

Let us assume that your mother is operating a variety store and you are
assigned to compute the gross profit of your store. Complete the data below
by supplying an amount for each category where you will arrive at a break-
even net profit.

Variable Cost Fixed Cost

Cost of goods Php Rent Php

Transportation/delivery Salary of seller

expense
Utilities (Electricity/Water)
Total Variable Cost Php Total Fixed Cost Php

Sales (Revenue) Php

Less:
Variable costs ______________________

Less:
Fixed Cost ______________________

Net Income Php __0________ Break-even

Rubric for the output:

Needs
Excellent Very Good Fair
Criteria Good (3) improvement
(5) (3) (2)
(1)
Realistic Not realistic
Realistic/ Very realistic Realistic Not realistic
but not and not
Original and original and original but original
original original
All Committed 4
Correct Committed Committed Committed
computations or more
computation 1 mistake 2 mistakes 3 mistake
are correct mistakes

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 Assessment
Read and answer each item carefully. Choose the letter of the right answer.

1. The costs that remain constant regardless of the unit volume.

A. Cost of goods C. Selling cost
B. Fixed cost D. Variable cost

2. The following are examples of variable cost, EXCEPT:

A. Advertising cost C. Rent expense
B. Cost of goods sold D. utility expense

3. It happened when a business neither makes a profit or loss.

A. Break-even point C. Profit
B. Loss D. Revenue

4. It is also called as cash inflow or for sellers, it is simply the selling price of
the product.
A. Break-even point C. Revenue
B. Fixed cost D. Variable cost

5. If the unit price of a commodity is Php 95, the variable cost is Php 75, and
the total fixed cost is Php 14000, find the break-even points in units and in
pesos.
A. 670 units, Php 63650 C. 690 units, Php 65550
B. 680 units, Php 64600 D. 700 units, Php 66500

6. Mr. Rivera bought 5 dozens of roses for a total of Php 1200 which he sells for
Php 30 each. If 20 of the roses withered, how much did he gain, lose, or
break-even in selling roses?
A. Break-even - Php 0 C. Loss – Php 200
B. Gain – Php 200 D. Loss – Php 400

7. The total sales of shoes is Php 54 000 for 60 units. If the store’s variable
cost per unit is Php 650 and the total fixed cost is 18000, what is the BEP
in units?
A. 68 C. 70
B. 69 D. 72

8. What is the BEP in pesos based on problem number 7?

A. Php 61200 C. Php 63000
B. Php 62100 D. Php 64800

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DISCIPLINE • GOOD TASTE • EXCELLENCE
9. The merchandising firm incurred Php 12000 for rental fee, Php 138000 for
cost of goods, marketing cost of Php 10000, Php 25000 for regular
employees’ salary and Php 4000 delivery expenses. How much is the total
fixed cost?
A. Php 37000 C. Php 138000
B. Php 47000 D. Php 152000

10. How much is the total variable cost in problem number 9?

A. Php 47000 C. Php 142000
B. Php 51000 D. Php 152000

Additional Activities
Solve the following problems.

1. What are the break-even points in units and in pesos of a computer printer
if the unit price is Php 4500, variable cost, Php 3800 and total fixed cost is
Php7000?

2. A bicycle has fixed cost of Php 18000 with the unit price of Php 4800 and
a variable cost of Php 3200. Find the break-even points in units and in
pesos of a bicycle.

3. The appliance store purchased 20 units of refrigerator for Php 460000. If

the cost of each refrigerator is Php 19000, other variable cost is Php 10000,
and fixed cost of Php 15000, what is the break-even points in units and in
pesos.

4. The trading company sells a laptop for Php 21000 per unit. It has variable
cost of Php 16500 per unit and a fixed cost of Php 70000 per month.
Identify the break-even points in units and in pesos.

5. The novelty store incurred the following expenses:

Cost of goods Php 450 000
Marketing expense 7 000
Regular employees’ salary 30 000
Rent 15 000
Utilities expense 8 000

a. What is the total variable cost?

b. What is the total fixed cost?
c. What should be the total sales or revenue of the store to get a break-
even net income?

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 SUMMATIVE TEST
Read and answer each item carefully. Choose the letter of the right answer.

1. It happened when the selling price is less than the cost price.
A. Cost Price C. Operating expenses
B. Loss D. Profit

2. The cost that goes up and down with sales and varies directly to the quantity
sold or unit volume.
A. Cost of goods C. Selling cost
B. Fixed cost D. Variable cost

3. The following are examples of fixed cost EXCEPT:

A. Administrative cost C. Marketing cost
B. Managers’ salary D. Rental Cost

4. This happens when the revenue is equal to its total cost.

A. Break-even point C. Profit
B. Loss D. Revenue

5. What is the loss percent if the retailer sells the cabinet for Php 8460, which
was bought for Php 10250?
A. 15.46% C. 21.16%
B. 17.46% D. 23.16%

6. Mr. Santos bought 100 pieces of pencil for Php 500 and sold each for Php6.
Find the loss or profit in selling the pencil.
A. Gain – Php 100 C. Loss – Php 100
B. Gain – Php 200 D. Loss – Php 200

7. What is the selling price of an outdated pair of pants if its cost is Php 650 and
loss percentage is 20%?
A. Php 480 C. Php 520
B. Php 500 D. Php 670

8. Mei sold two pizzas for Php 450 each. She gains 20% on the first pizza but
losses 20% on the other. Find the cost of two pizzas.
A. Php 365, Php 510.50 C. Php 375, Php 572.50
B. Php 365, Php 520.50 D. Php 375, Php 562.50

9. Missy bought 4 dozens of donuts for Php 1200, which she now sells for Php30
each. If 9 of the donuts were devoured by ants, did she gain or lose in selling
donuts? By how much?

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 A. Gain Php 25 C. Loss Php 25
B. Gain Php 30 D. Loss Php 30
10. Lito bought the used scooter for Php 6400 and spent Php 3000 for the repaint.
If he sold the scooter by 8900, how many percent did he gain or lose?
A. 5.32% C. 5.99%
B. 5.62% D. 6.33%

11. If Lito wants to gain 25% based on cost, how much must he sell the scooter?
A. Php 8000 C. Php 11750
B. Php 11125 D. Php 12000

12. If the unit price of a commodity is Php 295, variable cost is Php 210, and the
total fixed cost is Php 11000, find the break-even points in units and in pesos.
A. 120 units, Php 35105 C. 140 units, Php 41300
B. 130 units, Php 38350 D. 150 units, Php 44250

13. The total sales of 30 units of cabinets is Php 135000. If the store’s variable
cost per unit is Php 900 and the total fixed cost is 27000, what is the BEP in
units?
A. 8 C. 10
B. 9 D. 11

14. What is the BEP in pesos based on problem number 13?

A. Php 36000 C. Php 45000
B. Php 40500 D. Php 49500

15. The trading company sells bedsheets for Php 770 per unit. It has a variable
cost of Php 550 per unit and a fixed cost of Php 60000 per month. Find the
break-even points in units.
A. 270 C. 272
B. 271 D. 273

16. What is the BEP in pesos based on problem number 15?

A. Php 207900 C. Php 209440
B. Php 208670 D. Php 210210

17. The manufacturing firm incurred Php 32000 for rent, Php 155000 for the cost
of goods, delivery expense of Php 8000, Php 40000 for regular employees’
salary, and Php 13000 utility expense. What should be the total sales or
revenue of the firm to get a break-even net income?
A. Php 176000 C. Php 252000
B. Php 248000 D. Php 270000

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DISCIPLINE • GOOD TASTE • EXCELLENCE
For item number 18-20, refer to the given situation below.

The appliance store incurred the following expenses:

Cost of goods Php 530 000

Delivery charge 5 000
Marketing expense 5 000
Regular employees’ salary 25 000
Rent 12 000
Utilities expense 6 000

18. What is the total variable cost?

A. Php 37000 C. Php 546000
B. Php 43000 D. Php 583000

19. What is the total fixed cost?

A. Php 37000 C. Php 546000
B. Php 43000 D. Php 583000

20. What should be the total sales or revenue of the store to get a break-even net
income?
A. Php 37000 C. Php 546000
B. Php 43000 D. Php 583000

References

Mariano, N.L. (2016), Business Mathematics First Edition

https://www.business-case-analysis.com/break-even-analysis.html

https://www.math-only-math.com/worksheet-on-profit-and-loss.html

https://www.math-only-math.com/practice-test-on-profit-loss-and-discount.html

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 Answer Key

Lesson 1

What I Know What’ In What’s More?

1. D 1. 11 Cost Selling Price Profit Loss
2. B 2. -36 1) - - 400 -
3. C 3. -27 2) - 1095 - -
4. A 4. 0 3) 9660 - - -
5. A 5. 22 4) 10100 - - -
6. D 6. -23 5) - 124 - -
7. C 7. 0 6) 1716 - - -
8. A 8. -36 7) - 1385 - -
9. B 9. 0 8) - 11000 - -
10. B 10. -37 9) 14800 - - -
10) - - - 1800
What I have learned Assessment Additional Activity

1) Profit 1) B 6) C 1) 23.08%
2) Loss 2) D 7) C 2) Php 18782.61
3) Profit or Gain 3) A 8) B 3) 7.14%
4) Loss 4) A 9) D 4) Gain - Php 722.22
5) Gain profit 5) B 10) D 5) a. Gain - Php 10000 b. 14.29%

Lesson 2
What I Know What’ In What’s More? What I have learned
1) A 1) Php 50 1) 196 1) Break-even point
2) C 2) Php 8 2) 43 2) Revenue
3) C 3) Php 17 3) 77 3) Fixed cost
4) B 4) Php 34 4) 534 4) Variable cost
5) A 5) Php 6 5) 14 5.a) Sales = Variable
6) B 6) Php 20 6) Php 19600 cost + fixed cost
7) D 7) Php 1 7) Php 64500 or Sx = Vx + FC
8) D 8) Php 300 8) Php 34650 𝐹𝐶
b)BEP in unit=
(𝑆−𝑉)
9) B 9) Php 6300 9) Php 32040
c) BEP in pesos =
10) C 10) Php 370 10) Php 162400
Unit price x BEP in units
Assessment Additional Activities
1) B 6) A 1) 10 units, Php 45000
2) C 7) D 2) 12 units, Php 57600
3) A 8) D 3) 5 units, Php 115000
4) C 9) A 4) 16 units, Php 336000
5) D 10) D 5) a. Php 465000 b. Php 45000 c.Php 510 000

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DISCIPLINE • GOOD TASTE • EXCELLENCE
 Development Team of the Module
Writer: Maritess S. Zara (NHS)
Editors:
Internal Reviewer: Dominador J. Villafria, EPS – Mathematics
External Validator: Kervin Rey G. Torente (ADMU)
Cover Illustrator: Joel J. Estudillo (SNNHS)
Layout Artist:
Management Team:
Sheryll T. Gayola
Assistant Schools Division Superintendent
OIC, Office of the Schools Division Superintendent

Elisa O. Cerveza
Chief, Curriculum Implementation Division
OIC, Office of the Assistant Schools Division Superintendent

Dominador J. Villafria
Education Program Supervisor - Mathematics

Ivy Coney A. Gamatero

Education Program Supervisor – Learning Resource Management Section

For inquiries or feedback, please write or call:

Schools Division Office- Marikina City

Email Address: [email protected]

191 Shoe Ave., Sta. Elena, Marikina City, 1800, Philippines

Telefax: (02) 8682-2472 / 8682-3989

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DISCIPLINE • GOOD TASTE • EXCELLENCE