Page 7 - LESSON 2: DISCOUNTS AND COMMISSIONS

Course Guide

Module 2: MATHEMATICS OF SELLING

An important principle in a retail business is the proper pricing of its merchandise.

Wrong pricing may lead to small profit or heavy loss. The cost price is the original price of
the merchandise paid by the retailer. The retailer must add a certain amount called the mark-

up to its cost to cover its business and to provide a profit.

Other factors like item demand, production costs, and competition may affect the

selling price. This involves other processes like markdown, mark-on, discounts, and

commissions that will be discussed in this module.

Intended Learning Outcomes (ILO)

By the end of this module, the students are expected to:

1. Find markdown and mark-up, mark-up rate and solve markdown and mark-up or
markdown rate and mark-up rate problems.

2. Find both the trade discount and the net price, the discount rate and solve for both
the trade discount and the net price and the discount and the discount rate problems.

Timing
2
It will take 1 ⁄ weeks or equivalent to 5hrs to complete this module.
3
Estimated/Suggested
LESSON TOPICS Time Allotment per WEEK #
#
Topic/Lesson
1 Establishing Retail Prices:
A. Mark-on 20 min
1 hrs.
B. Mark-down 20 min
C. Mark-up 20 min
2 Discounts and Commissions: wk 3
A. Trade Discounts 30 min
B. Computing Single Trade Discounts 30 min
C. Finding the Discount Rate 30 min
D. Finding the List Price 30 min 4 hrs.
E. Discount Series 30 min
F. Cash Discounts 30 min
wk 4
G. Arrearages 30 min
H. Terms of Sale 30 min

COURSE GUIDE v | P a g e