Republic of the Philippines

Department of Education
Regional Office No. VIII
Division of Northern Samar
LORENZO S. MENZON AGRO-INDUSTRIAL SCHOOL
Lapinig, Northern Samar

10
LEARNING ACTIVITY SHEETS
QUARTER 2- Week 1-2

UNIT OF COMPETENCY:

Determine Costing and Pricing of products and services

Lesson 1 Estimate Cost of Products and Services

General Reminder: Use this activity sheet with care. Do not put unnecessary marks/s

on any part of the activity sheets. Use a separate sheet of paper in answering the
exercises. Read the directions carefully before doing each task. Return this activity sheet
to your teacher/facilitator once you are through with it.

Explore
WHAT DO YOU ALREADY KNOW?

Directions: Let us find out how much you already know about the
production cost and pricing of products or services . Answer the questions
below honestly. Write the letter only of your chosen answer in your activity
notebook:

1. What is the business condition when the Total Revenue (TR) is greater that Total
Cost (TC)?
a. There is a business loss
b. There is a profit
c. There is no gain and no loss

2. In a laundry shop, when do you give a discount of 10%

a. 5 to 12 kilos of laundry
b. 10 to 13 kilos of laundry
c. 13 kilos of laundry and above

3. It refers to the value set for rendering a service or product for sale or the amount paid
for commodities.
a. cost
b. price
c. profit

4. How much is the price of a bottle of perfume when the cost is P250.00 with 38%
Target Profit in Percent (TPP).
a. P299.00
b. P345.00
c. P380.00
5. What type of costing is direct labor and raw material in production?
a. direct cost
b. indirect cost
c. purchasing cost

6. Expenses on building, machines, maintenance, salaries, office costs, selling and

financial costs are better known as overhead expenses. Which of the following costing
does it fall?
a. direct cost
b. indirect cost
c. purchasing cost
7. It refers to the margin or difference between the cost price and the selling price of an item.
a. mark-up
b. revenues
c. sales profit

Engage
LET US REMEMBER
The rules of production are helpful to the Entrepreneurs. These will guide him to
know what and how to decide on his production. It tells when they need to produce
more, when to stop production or when to maintain the production. Likewise, it is good
for all the business enterprise to know the computation of their production to avid
failure of business operations.

ACTIVITY 1
 A. Given the following nominal values of revenues and costs, decide whether you
need to produce more, stop your production or maintain production of goods or
services. Draw an upward ( ↑ ) arrow if your answer is to produce more; downward
arrow ( ↓ ) when you need to stop and draw a smiley face ( 😊 ) when your decision is to
maintain production.

NO. BUSINESS NAME TR (INCOME TC ENTREPRENUERS

(EXPENSES) DECISION
1. Son’s Academy 18,000 21,000
2. Sea-Bricks Co. 24,500 19,000
3. Jay’s Fashion Shop 15, 880 15,880
4. Jr./Sr Internet Cafe 6,800 8,300
5. Celjun’s Transpo 22,100 15,500

ACTIVITY 2

B. Compute for the cost and analyze the following problems. Write your answers
inside the box. Show the solution in a separate sheet to arrive at the correct answers.
(3pts. Each)

1. If you have two (2) workers receiving each a daily wage of P250.00 a day, with 5
working days a week, how much is your total wage bill for a month?
Write your Solution and answer:________________________

2. Based on your answer in number 1, how much is your annual wage cost of
production?
Write your Solution and answer:________________________

3. How much will be your total direct costs per bench if the total labor is P200.00 and
the total direct materials is 450?
Write your Solution and answer:________________________

4. What is 25% of the assumed P150,000.00 indirect costs?

Write your Solution and answer:________________________

5. As an entrepreneur, what will you expect for a cost of a unit of wood bench when
you target for 2,000 unit yearly sales with P225,000.00 total indirect costs for the
year? Write your Solution and answer:________________________

APPLY
Directions: Copy the letter of the correct answer on your notebook.

1. This is the time when you need to decide to maintain your production.
a. when the TR is equal to TC
b. when the TR is greater than TC
c. when the TR is lesser than TC

2. It refers to the situation when you need to decide to produce more when
the__________.
a. TR is equal to TC
b. TR is greater than TC
c. TR is lesser than TC

3. Time may come when you really need to decide to stop your business production.
When the______
a. TR is equal to TC
b. TR is greater than TC
c. TR is lesser than TC

4. It is the way you calculate or estimate the cost to have for a product.
a. costing
b. pricing
c. producing

5. The direct labor cost and direct raw material costs are under which type of
production cost?
a. direct cost
b. indirect cost
c. purchasing cost

A. Write on the worksheets below at least 5 particulars of the direct and indirect costs
of any service type or production business.

DIRECT COST INDIRECT COST

1. 1.
2. 2.
3. 3.
4.
5.
B. What are the benefits if you know your costs?

PRODUCTION COSTS BENEFITS CHECKLIST

1.
2.
3.
4.
5.

C. What are the steps in Computing your cost?

STEPS IN COMPUTING COSTS

1.
2.
3.
4.
5.

UNIT OF COMPETENCY:

Lesson 2- Determine Pricing of Products and Services Using

Pricing Model

Explore

WHAT DO YOU ALREADY KNOW?

Directions: Let us find out how much you already know about the
production cost and pricing of products or services. Answer the questions
below honestly. Write the letter only of your chosen answer in your activity
notebook:

1. It is a part of the pricing system wherein the government becomes alert against
those who are abusing and making unreasonable prices.
a. Pricing strategy
b. lowest pricing strategy
c. highest pricing strategy

2. A method of setting a price according to the values of the products or services

offered to the clients that usually increases when there are evident results.
a. cost-plus-pricing
b. return on investment pricing
c. value-based pricing
3. In a laundry shop, when do you give a discount of 10%
a. 5 to 12 kilos of laundry
b. 10 to 13 kilos of laundry
c. 13 kilos of laundry and above

4. This is describes a method of setting up price to target profit from specific product
or service.
a. cost-plus-pricing
b. return on investment pricing
c. value-based pricing

5. Price is only one factor in purchasing which may lead to the most risky activity in
pricing. This is called__________
a. highest pricing strategy
b. lowest price strategy
c. moderate price strategy
Let us find out how much you will sacrifice to invest for a possible goodwill using the
data above.
Unit Price per laundry service P32.00 x 10 kilos 5% discount/ 10
=P32.00x10 – 5%/10
=P320.00-16.00 /10
=P30.40
Therefore, goodwill investment capital for 10 kilos of laundry service is only
P1.60 (P32.00 unit price less P30.40 discounted price) per kilo of laundry service
rendered to your customer.

It is suggested that the following goodwill investment package chart be

applied on your laundry business. You may also change it for further improvement of
your services.
a. 100% service fee of P32.00 per kilo of laundry
b 5% discount from 5 to 12 kilos of laundry
c. 10% discount from 13 kilos and above of laundry

LET US REMEMBER
As a future entrepreneur, you have to value the importance of honest and
accurate computation in pricing. Pricing policy will help every entrepreneur. The use
of models or standards samples of computation will facilitate the correct pricing
procedure.

Engage
ACTIVITY 1

1. Assuming that you need to supply a school canteen of bottled mineral water,

500ml with a cost of P6.50/bottle, how do you determine the price per bottle? (target

profit in Percent TPP) = 40%

Please explain your answer below by showing the computation.

COMPUTATION:

2. If you will compute for the service of a doctor’s professional fee of P380.00 per
consultation (inclusive of the clinic rental, bills, etc.) how much will the doctor’s
consultation service be? Discuss your answer below by showing the computation for
60% general mark up.

COMPUTATION:

Apply
Directions: Write your computation and copy the letter of the correct answer
answer in your answer sheet. (3pts. Each)
1. If you have 10 jackets for P180.00-unit cost, how much will be the unit price at
40% Target Profit in Percent (TPP)?
a. P272.00
b.P295.00
c. P252.00
COMPUTATION:

2. Compute how much will be the price of a bottle of perfume when the cost is
P250.00 with 38% TPP?
a. P380.00
b. P299.00
c. P345.00
COMPUTATION:

3. With 10% discount incentive, what will be the unit price of 10 kilos laundry if the
service is P32 per Kilo?
a. P320.00
b. P232.00
c. P288.00

COMPUTATION:

4. In a laundry shop, when do you give a discount of 10%?

a. 5 to 12 kilos of laundry
b. 10 to 13 kilos of laundry
c. 14 to 15 kilos of laundry

COMPUTATION:
5. What is the effect in business when the TR is lesser than the TC?
a. there is a business loss
b. there is a profit
c. there is no gain and no loss