LYCEUM OF ST.

DOMINIC INC
SOFACOFA Bldg., Purok 7, Brgy. Sta. Elena (Pob.), Sta. Elena, Camarines Norte

LESSON PLAN
Subject: ORAL COMMUNICATION
Teacher: Erica P. Amolar Grade/Section: 11
Date/Time: 1st Quarter: First ( Week 6)
I. OBJECTIVES
A. Content Standard The learners demonstrate understanding of key concepts in buying and
selling
B. Performance Standard The learner are able to analyze and solve problems on important factors in
managing a business; buying product and selling product.
C. Learning Competencies At the end of the lesson the student should be able to;
a. Define break even analysis
b. Determine the break even
c. Solve problem involving buying and selling products.
II. CONTENT BREAK EVEN ANALYSIS
III. LEARNING RESOURCES
A. References Textbook entitled “Business Mathematics written by Winston S. Sirug Ph.D
2016
B. Instructional Materials Audio-visual materials (PowerPoint Presentation) cartolina, pentelpen
papers
IV. PROCEDURE
A. Review 1. Ramon Magsaysay purchases merchandise whose invoice price Php
391.50. The given list price is Php 350. Find the trade discount and
rate of trade discount.
2. Motivation 1. Abaca slippers are manufactured locally by Bicol enterprise. They
have total fixed costs of Php 58, 300. The variable cost per pair of
abaca slippers is php 85. The selling price per pair of abaca slippers
is Php 125. What is the break even point in the number of pairs of
abaca slippers?
3. Presentation Break – even Analysis
Break-even Analysis is the simplest quantitative model used by a
decision maker which is also referred to as cost-volume analysis. Its
major concerns are interrelationship of costs, volume and profit.

Components of Break – Even Analysis

1. Volume. The level of production by a company, which is

expressed as the number of units (quantity) produced and
sold.
2. Profit. The difference between total sales and total costs or
the income generated by the sale of a product.
3. Cost. The usual numbers of different costs that must be taken
into account in order to determine profit.

Fixed and Variable Cost

1. Fixed Cost. It is a cost that is independent of the volume of

units produced. It will remain the same regardless of the
volume of sales.
2. Variable Cost. It is a cost that is determined on a per-unit
basis. It grows in direct proportion to the volume of sales. In
others words, the increase in the same amount for each
additional unit falls into this category.

The following notations will be used for Break-even Analysis:

X = volume of output or sales in units
P = profit TC = total Cost
SP = Selling Price per unit TR = Total revenue (from the
sale of x units)
VC = variable cost BEQ = Break-even Quantity

4. Comprehension Check-up
5. Developing Concepts
V. TEST YOUR SKILLS
VI. GENERALIZATION
VII. APPLICATION
FC = Fixed Cost
Formulas:
Daily Salary of Worker
Labor cost =
Average Daily output of the Worker
VC = Material Cost + Labor Cost
TR = SP(x)
TC = FC + VC (x)
Profit = TR – TC
Example: A small manufacturing operation can produce a certain
product that sells for P64 per unit. The variable cost per unit is P36,
and the fixed cost per unit is P5, 600.
(a) How many units must sell per week to break even?
(b) Determine the firm’s weekly profit or loss if it sells 150 units.
Given: VC = 36 per unit FC = P5, 600 SP = 64
Solution:
FC 5600
a. x = =
SP−VC 28
5600
= = 200 units
64−36
b. x = 340
Profit = TR – TC
= (SP)(x) – FC + VC (x)
= 64(340) – 5600 + 36 (340)
= 21, 760 – 5, 600 + 12, 240
= 3, 920
A small manufacturing operations can produce a certain product that sells
for Php 64 per unit. The variable cost per unit is Php 36, and the fixed cost
per week is Php 5,600
a. How many units must sell per week to break even?
b.Determine the frim’s weekly profit or loss if it sells 340 units.
1. A professional organization is planning the annual general meeting.
A hall rented for Php 27, 000. A food caterer has quoted a price of
Php 250 per person for the dinner. The organizer think of charging
Php 430 per attendee
a. Calculate the number of tickets that need to be sold to break
even.
b. What will be the profit or loss if there will be 145 attendees?
What is the business doing at break even point?
What are the three important variables in a break even analysis?
Determine the amount of servings of pasta to sell in order to equate the
costs if the two brothers will work at home and on school campus.
1. Two brothers have catering business. They offer a selection of pasta
in the afternoon to college students. A present, they prepare the
pasta at their home, which is 10 kilometers away from school. The
average cost per pasta, including the transportation, material and
direct labor is approximately Php 30. The school has recently
offered to lease them a small space on campus. The rent for the
space is Php 3,500 per month. The two brothers estimate that they
will be able to produce the pasta at this new location at an average
cos of Php 25 per serving on campus?
a. How much servings of pasta in a month do they have to sell in
order to be indifferent to the costs of working at home versus
working in the space on campus?
b. Their parent have decided that they are going to charge Php 1,
000 per month because of the additional out of pocket coasts
involved with preparing the pasta at home (electricity, cleaning
supplies, etc. ). What is the new breakeven point under these
circumstances between working at home and working on
campus?
VIII. EVALUATION 1. WSS Industries produces a limited number of custom toy house
made of durable plastics for kids. The fixed costs of the operation
total Php 55, 350,000. The base selling price is Php 22,700. The base
variable cost per custom toy house is Php 17, 300. What is the break
even point in number of custom toy house?
2. A local movie company had a license to reproduce Hollywood
movies in DVD format. The fixed costs total Php 4, 297,500. The
selling price per disc is Php 250. The variable cost per disc is Php
100. What is the break even point in number of disc.
3. SSS Mental Products produces kitchen knives. They plan to
manufacture 100,000 kitchen knives to be sold for Php 235 each. The
fixed costs are estimated to be Php 1,750,000. Variable costs are Php
145 per unit. How many kitchen knives must be sold for SSS Metal
Products to break-even?
4. ASSIGNMENT 1. Mindshapers Publishing Inc. prints senior high school books. It
plans to print Php 50,000 copies to be sold at Php 350 each. The
fixed costs are estimated to be Php 1, 230,000. The variable costs
are Php 125 per book. How many books must be sold for
Mindshapers Publishing Inc. to break-even?
5. REMARKS
6. REFLECTION