DETAILED LESSON PLAN

IN BUSINESS MATHEMATICS 11

Learning Competency:
Differentiate profit and loss
(ABM_BM11BS-Ii-6)
Illustrate how profit is obtained and how to avoid loss in a given
transaction
(ABM_BM11BS-Ii-7)

I. CONTENT STANDARD
 Key concepts in buying and selling

I. PERFORMANCE STANDARD
 Analyze and solve problems on important factors in managing a
business: buying products and selling products

II. LEARNING OBJECTIVES

At the end of the lesson, the students are expected to:
a. Differentiate profit from loss ABM_BM11BS-Ii-6
b. Solve for the profit given the cost and net sales ABM_BM11BS-Ii-7
c. Determine if the profit or loss is achieved in a given transaction
ABM_BM11BS-Ii-8

III.  SUBJECT MATTER:

Topic: Profit and Loss
Reference: Business Mathematics, Quarter 1 Module 7

TEACHER’S ACTIVITY STUDENT’S

ACTIVITY
A. PRELIMINARY ACTIVITIES

a. Prayer
“ Let us pray,
Our most gracious, loving, heavenly Father, we are here before Thee. Help us
to study well. Help us to be
Obedient and honest. Help us to love one another. Bless our
teacher, bless our school, bless our country, and bring us all to Heaven. In Jesus
name we pray, Amen.”

b. Greetings

“Good Morning class!” “Good morning,

“How are you today?” Ma’am!
“We’re fine
c. House Rules Ma’am!”
“ Before we start our lesson for today, I want you to prepare
your pen and notebook so that you can take down notes of
our lesson today”
“Okay Ma’am!”

B. REVIEW
“ Our previous
 Can you still remember our previous lesson? “ lesson was all
“What was that all about? Can you give the formula in about trade
computing the trade discount” discount.”

“ Trade discount =
“Very good!” original price x
discount rate”

C. MOTIVATION

“ Do you want to play a game?”

“ This time, let’s play word hunting. You are going to list down all
the words related to business that you can find in the box. The words
can be found horizontally, vertically, diagonally or backward. You are
given 2 minutes to find the words. Have fun!
C V N B O R S N M
T S O S Q Z E G H V
I C B N RL B L K Q X
F P B V A R I A B L
O T S S Y S S A D B
R G T H V S L O S S
P E E T Y O H K M P “Yes Ma’am!”
M A R N I L L R D F  Loss
Profit
“Were you able to find all the words in the word hunting activity”. Cost
Did you find the activity interesting? Net sales
Variable
D. UNLOCKING OF DIFFICULTIES

“ I hope you find the activity a trigger to your interest in the lesson. ‘’
Now let us define the words that you found in the word hunt exercise.”
Net sales- the sum of a company’s gross sales minus its
returns, allowances, and discounts
Variable- able to be changed or adapted
Loss- it is occurred when the cost and expenses exceed the revenue or sales.
Fixed- predetermined and not subject to or able to be changed
Profit- a financial gain, is the amount left from the revenue after all cost or
expenses had been deducted.
Cost- an amount that has to be paid or spent to buy or obtain something.

E. PRESENTATION

Introduction of the lesson

“From the activity, what do you think is our topic today?”
“Excellent! Our topic for today is about profit and loss. “ “ Profit and Loss”
Reading of Objectives
“But before that let us know first our goal for today!”
At the end of the lesson, the students are expected to:
a. Differentiate profit from loss;
b. Solve for the profit given the cost and net sales; and
c. Determine if the profit or loss is achieved in a given
transaction

F. DISCUSSION

“Now, let’s start with the lesson by looking at the three situation that are
possible to happen in business.”

Case 1 Case 2 Case 3

Net Sales P1,000 Net Sales P1,000 Net Sales P1,000
Less: Cost 500 Less: Cost 1, 200 Less: Cost 1,000
Profit P 500 Profit P -200 Profit P 0

The first case is Profit situation, because the net sales of goods are more than
the costs spent in the business.
The second case is Loss situation, because the next sales of goods are less than
the cost spent.
And the third case is Break-even situation, because the net sale of goods is
equal to the cost that was incurred in business.

G. APPLICATION

Now, you are going to apply what you have learned. Read and analyze the case
problem below and use the table on the next page as your guide in providing
answers.
You are given 5 minutes to finish your task
Watch for Less
James buys a local brand of watch from a supplier at ₱1,000.00 each. He sells
them in his store at a regular price of ₱1,500.00. In operating his watch store,
he also incurred other expenses like rent of space at ₱5,000.00 and salary of his
worker for ₱10,000.00 during the month. Case 1 If during the month of August,
James sells 25 units of watches, what is the profit he gained or the loss he
incurred in this transaction? Case 2 If during the month of August, in order to
boost his sales, James offers a 10 % discount for each watch and was able to sell
90 units of watches. What is the profit he gained or loss he incurred in this
transaction?
Case 1 Case 2
Step 1: Identify and label all the information
needed to solve the problem.

Step 2: Compute for the selling price of the product

Step 3: Compute for the net sales by multiplying the quantity sold by its
selling price.

Step 4: Identify and compute for the variable cost of sales by multiplying
the quantity of output sold by its variable cost per unit.

Step 5: Identify and compute for the total fixed costs by adding all the
costs necessary to keep the business running.

Step 6: Use simple income statement to compute the profit or loss in the
problem.

Conclusion:

H. GENERALIZATION

It is a great to know that you put a lot of effort in answering the activities.
Can you now relate with the feelings of an entrepreneur each time the
business experiences profit or loss? Express your thoughts about you learn
from the lesson.
What are the qualities that you need to consider when entering the
business world?

By comparing the results in the profit or loss statement of the case problem,
it can be concluded that it is necessary to put in a lot of hard work and
dedication in business by having a good relationship with customer to
ensure profit and avoid loss.
Do you find any connection of the lesson to the subject areas? How
about in your common subject? Well, if you going to look back to your
economics subject, economic profit is a type of “what if” analysis.
Companies and individuals may choose to consider economic profit when
they are faced with choices involving production levels or other business
alternative. We can also integrate it to values education. When you are
engaged to a business, all you need to possess are patience and
perseverance. If ever you encounter loss situation, don’t be discourage
instead make it as a motivation to keep going and another ways and
strategies to improve your business.
 IV. EVALUATION

1. Which of the following is the result when the net sales of goods is less than its
cost?
a. break-even b. cost c. loss d. profit
2. What is the result when the net sales of goods is more than its cost?
a. break-even b. cost c. loss d. profit
3. Which of the following is the result when the net sales of goods is equal to the
cost that was incurred in business?
a. break-even b. cost c. loss d. profit
4. What is the term used to refer to the amount of money received from the sale
of goods after all deductions such as discounts or refunds are made?
a. cost b. loss c. net sales d. profit
5. What is the difference between the capital invested in a business and the
amount received in return?
a. cost b. loss c. net sales d. profit

For items 6-10, read and analyze the problem and answer the questions that
follow.
Mario’s Dressed Chicken Store Mario sells dressed chicken in his village. He buys
his supply of chicken from a distributor at ₱140.00 per kilo. He charges a 25%
mark-up based on cost to set up his selling price. Mario rents a small store space
for ₱2,000 a month. He also incurs monthly water and electricity expenses for
₱2,500 and salary of his store clerk for ₱3,000. During a month of operation, he
was able to sell a total of 1,000 kilos of dressed chicken.

6. What is the selling price of the dressed chicken per kilo?

a. ₱ 35 b. ₱ 140 c. ₱ 165 d. ₱ 175

7. How much is the total fixed cost incurred for the month?
a. ₱ 7,500 b. ₱ 14,000 c. ₱ 140,000 d. ₱ 147,500

8. How much is the total variable cost incurred for the month?
a. ₱ 7,500 b. ₱ 14,000 c. ₱ 140,000 d. ₱ 147,500

9. What is the net sales during the month?

a. ₱ 7,500 b. ₱ 17,500 c. ₱ 75,000 d. ₱ 175,000

10. What is the result of Mario’s Dressed Chicken store for the month?
a. loss of ₱ 27,500 b. profit of ₱ 27,500 c. neither profit nor loss of ₱ 27,50

I. ASSIGNMENT

Put your feet in the shoes of the business owner and suggest specific ways
on how a business can gain profit and how it can avoid loss.
Give at least 5 ways to gain profit and 5 ways how to avoid loss.

Prepared by:
JOLLY ANN E. ABRIA
BSED-IV Supplemental Student