CALCULATE COST OF PRODUCTION.pptx
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This document provides instructions on how to calculate cost of production and markup percentage for retail goods. It explains key terms like selling price, purchase cost, total cost, peso markup. It gives a step-by-step process for calculating markup percentage based on either purchase cost or selling price using formulas. An example is provided for each. Finally, students are given an activity to calculate markup amounts and percentages for sample goods using purchase and selling prices provided.
CALCULATE COST OF PRODUCTION.pptx
- 1. CALCULATE COST OF PRODUCTION TLE 8 Commercial Cooking Exploratory
- 2. Who among you have gone to public market and buy the recipe ingredients? How much is the price of the typical ingredient like sugar, flour and salt?
- 4. How did you find the activity? How about the equation/formula to be used? Was it enjoyable to you or not? How would you apply this in real life situations?
- 5. How to Calculate Markup Percentage Principles of Costing Markup - is the difference between how much an item cost you, and how much you sell that item for its your profit per item. Any Person working in retail will find the skill being able to calculate markup percentage very valuable. Selling price is the price at which product or service is sold Purchase cost is the price a buyer pays for the product bought Total cost is the total cost of production
- 6. 1. Calculate your peso markup, this is done by subtracting your buying price from your selling price. Example: Selling price 15.00 Purchase cost/buying price - 10.00 Peso markup 5.00
- 7. 2. Decide whether you want to calculate your percentage markup based on cost or selling price. Once you choose which you will be using to calculate, it is important you stick to the method you choose throughout all your calculations, or you will end up with faulty data. If you decide to calculate your percent markup based on cost, go on to step 3. If you decide to calculate your percent markup based on selling price, gone to step 4.
- 8. 3. Calculate percent markup based on cost. This is done by dividing the peso markup by the cost. Example: Peso markup 5.00 Purchase cost/buying price 歎 10.00 Percentage mark up .50 or 50%
- 9. 4. Calculate your percent markup base on selling price, this is done by dividing the peso markup by the selling price. Example: Peso markup 5.00 Purchase cost/buying price 歎 15.00 Percentage mark up .33 or 33%
- 10. 5. Make sure you consistently use either cost of the product or selling price to find the percentage markup on an item. Even though the cost, selling price, and peso markup will always be the same, selling price or cost. Using be drastically different depending on if you calculate it using selling price or cost. Using selling price will give you a higher percentage markup.
- 11. Activity (Think, Pair and Share) Direction: Calculate how much is the peso mark-up of the following purchase cost: Item Purchase Selling Peso Percentage cost price mark-up mark-up Gulaman 4.00 6.00 __________ __________ Siopao 10.00 15.00 __________ __________ Soft drink 9.00 12.00 __________ __________ Ball pen 5.00 7.00 __________ __________ Paper 9.00 25.00 __________ __________
- 13. Assignment: The students are tasked to go to the public market/sari-sari store in their area and observe the price of the products.
- 14. Thank you for listening!