Department of Education: Republic of The Philippines
Department of Education: Republic of The Philippines
Department of Education: Republic of The Philippines
Department of Education
REGION III
SCHOOLS DIVISION OF TARLAC PROVINCE
ANAO HIGH SCHOOL
ENTREPRENEURSHIP
I. OBJECTIVES
The learner demonstrates understanding of concepts, underlying principles, and
A. Content Standards
processes of starting and operating a simple business.
The learner independently or with his/her classmates starts and operates a business
B. Performance Standards
according to the business plan and presents a terminal report of its operation.
At the end of the session, students are expected to:
Identify essential factors in forecasting revenues;
Appreciate the significance of identifying essential factors in forecasting
C. Learning Competencies/ revenue
Objectives
Calculate mark-up and selling price of a product or merchandise;
Compute projected revenues;
Can you name the four M’s of Operation? Write your answers in the comment section
A. Reviewing previous lesson below.
or presenting new lesson
(REVIEW) The Four M’s of operations include.
Man
Money
Materials
Method
Have you tried estimating the time that it takes you to travel from home to school?
Try to fill in the necessary information in the table below. Write your estimate in
Estimated Time column, after arriving to school fill in the Actual Time in the blank
provided.
B. Establishing a purpose of
How close were your estimates compared to the actual time? Did your estimate fell
the lesson
short compared to the actual time? What do you think were the factors that might
(MOTIVATION)
have contributed in getting you early to school? List the reasons in the blank.
On the other hand, does your actual time exceed your estimates? What do you think
were the factors that might have contributed in arriving later than your estimated
time? List the reasons in the blank.
C. Presenting The entrepreneur would want his/her forecasting for his/her small business as
examples/instances of the credible and as accurate as possible to avoid complications in the future. In
new lesson estimating potential revenue for the business, factors such as external and internal
(PRE-ACTIVITY) factors that can affect the business must be considered. These factors should serve as
basis in forecasting revenues of the business. These factors are:
1. The economic condition of the country. When the economy grows, its growth is
experienced by the consumers. Consumers are more likely to buy products and
services. The entrepreneur must be able to identify the overall health of the economy
in order to make informed estimates. A healthy economy makes good business.
Table 2 shows the projected monthly and yearly revenue of Ms. Nista’s online selling
business. Computations about the monthly revenue is calculated by multipying daily
Table 3 shows the projected monthly revenues covering one year of operation. The
table shows an average increase of revenue every month by 5 percent except June,
July to October and December. While the month of June has twice the increase from
previous month, 10 percent. Let us consider that months covering July to October are
considered to be Off-Peak months, therefore sales from July to October are expected
to decrease. It is assumed that there is no increase in revenue from July to August
while from August to October the decrease in revenues is 5 percent from previous
month. Since revenues from sales of RTW’s are considered to be seasonal, it assumed
that there is 10 percent increase in revenue from November to December.
Computation for assumed increase of revenue on specific months is as follows:
Projected Monthly Revenue (Increase) = Revenue (January) x 5 % increase
Projected Monthly Revenue (Increase) = 102,600.00 x .05
Projected Monthly Revenue (Increase) = 5,130.00
Projected Revenue for February = Revenue (January) + Amount of increase
Projected Revenue for February = 102,600.00 + 5,130.00
Projected Revenue for February = 107,730.00
On the other hand, decrease in revenue is computed as follows:
Projected Monthly Revenue (Decrease) = Revenue (August) x 5 % increase
Projected Monthly Revenue (Increase) = 144,041.14 x .05
Projected Monthly Revenue (Increase) = 7,202.06
Projected Revenue for September = Revenue (August) - Amount of decrease
Projected Revenue for September = 144,041.14 – 7,202.06
Projected Revenue for September = 136,839.08
F. Developing mastery What are the important assumptions of shown in the tables shown earlier?
(POST-ACTIVITY) February to May Increase of 5% from previous revenue
June Increase of 10% from previous revenue
July to August The Same Revenue
September to October Loss 5% from previous revenue
Entrepreneurs use ______________ techniques to determine events that might affect the
operation of the business. Factors such as __________ and _________ much be considered
to avoid possible complications in the future. To forecast revenues, it is best that the
entrepreneur must be acquainted with the _________, and __________ to determine the
H. Making generalizations and
selling price of a product. This way, the selling price is then multiplied to the
abstractions about the
projected volume to arrive with the ______________.
lesson
The entrepreneur should always present the assumptions to consider in projecting
(GENERALIZATION)
revenues, may it be seasonality, economic slowdown or changes in customer
preferences and the like. This will help achieve the best educated estimate of your
revenues
What
After learning the calculations presented, you can now compute the projected
revenue by day, month and year based on your business concept.
Aling Minda is operating a buy and sell business, she sells broomsticks (walis
tingting) in her stall at a local market. She gets her broomsticks from a local supplier
I. Evaluating learning
for 25 pesos each. She then adds 50 percent mark-up on each broomstick. Every day,
(ASSESSMENT)
aling Minda can sell 30 broomsticks a day.
Use the template below and fill in the necessary figures based on the scenario.
Remember to use the factors to consider in projecting revenues and refer to tables 1,
2 and 3 as your guide. (Flashed in the Video)
It is understood that you now know how to calculate mark-up and selling price of an
item or merchandise. Let us try the following situation to see if you have understood
the concepts.
J. Additional activities for
Kyle, a local entrepreneur is planning to sell 10 liter bottled water in his sari-sari
application or remediation
store. A local water purifying business in the city sells their 10 liter bottled water for
(REMEDIAL)
20 pesos each. Kyle wants to add 25 per cent mark up from the original cost of 10
liter bottled water. Calculate how much mark-up Kyle should add. Determine how
much should be the selling price for 10 liter bottled water.
Prepared by:
GLAIZA D. FLORES
Teacher II
Observers: