xcelRepublic of the Philippines

Department of Education
Region III
Schools Division Office of Bulacan
San Miguel National High School

Entrepreneurship

Products and Services

Available in the Market

ACTIVITY SHEET
(Quarter 2 - Week 4)

NAME: __________________________________

GRADE AND SECTION: __________________________________

DATE OF SUBMISSION: __________________________________

I. OBJECTIVES
A. Content Standards
The learners demonstrate an understanding of environment and market
in one’s locality/town.

B. Performance Standards:
The learner independently creates a business vicinity map reflective of
potential market in one’s locality/town.

C. MELCs:
The learner demonstrates understanding of:
1. Forecast the Revenue of the Business.
2. Forecast the Cost to be incurred.
3. Compute for Profit.
tle_ICTAN11/12EM-Ia-2

D. Specific Objectives:
1. Define and explain how to forecast the revenue.
2. Given template, make a startup costing of your business.
3. Define profit.
4. Explain how to calculate profit.

II. CONTENT
Products and Services Available in the Market
Lesson 1: Forecast the Revenue of the Business
Lesson 2: Forecast the Cost to be incurred
Lesson 3: Compute for Profit

III. PROCEDURES:

A. Preliminary Activities

1. Pre-Test

Choose the letter that you think is the best answer to each of the following
questions. Write the letter of your choice on your answer sheet.

1. A __________ is an educated prediction for the upcoming year about how

much money your company will likely bring in.
A. Profit B. Revenue C. Financial forecast D. forecast
2. It is that the amount of cash that a corporation receives during a
selected period, including discounts and deductions for a returned
merchandise.
A. Profit B. Revenue C. Financial forecast D. forecast

3. It assists you to satisfy your business goals.

A. Profit B. Revenue C. Financial forecast D. forecast

4. It is the difference between the price and cost when talking about one item.
A. Profit B. Revenue C. Financial forecast D. forecast
5. It is the amount for which a single item is acquired or produced.
 A. unit cost B. cost C. unit price D. total cost

6. The amount for which items are acquired or produced, also known as the cost of goods
sold.
A. unit cost B. cost C. unit price D. total cost

7. The amount for which a single item is sold.

A. unit cost B. cost C. unit price D. total cost

8. The cost multiplied by the number of items.

A. unit cost B. cost C. unit price D. total cost

9. It is total amount of money gained.

A. unit cost B. cost C. total profit D. total cost
10. It is the percentage price reduction.
A. unit cost B. discount C. total profit D. total cost

2. Reviewing Previous Lesson

- Differentiate value chain from supply chain.
- Explain the recruitment process.
- What is a business model?

B. Presenting the New Lesson

Welcome to Entrepreneurship class! This course is designed to familiarize

the students with the basic concepts of forecasting the revenue of the
business, forecast the cost to be incurred and compute for Profit.

1. ACTIVITY: Motivation
If you are planning to have your own business, what are the
factors to consider in putting up a business?

2. ANALYSIS:
Processing question/s:
A. How to forecast revenue?
B. How to make a startup costing of your business?
C. How to compute for profit?

3. ABSTRACTION (Discussion of the Topic)

FORECAST THE REVENUE OF THE BUSINESS

A forecast is an educated prediction for the upcoming year about how

much money your company will likely bring in, so you will estimate what
you'll be able to afford to spend, and what your margin of profit be like?

Revenue is that the amount of cash that a corporation receives during a

selected period, including discounts and deductions for a returned
merchandise.

Sample of a Revenue Forecast

Formula: Unit Price X Unit

How to Forecast Revenue?

1. Choose between Qualitative Forecasting or Quantitative Forecasting (or a

mixture). A Qualitative method is a kind of forecasting supported judgment, opinions,
intuition, emotions, or personal experiences and are subjective in nature while Quantitative
Forecasting may be a variety of forecasting method supported mathematical models and are
objective in nature. They rely heavily on mathematical computations.

2. Start with last year’s revenue statements for a basis of prediction.

The thought of forecasting sales intimidates lots of individuals, but in, it's simply an act
of viewing some information and making some logical assumptions from it.

3. Consider any recent changes in personnel, products, pricing, competition, or other

factors. The forecaster should choose a way that creates the simplest use of accessible data.
If there are changes in personnel like reassignment of an employee to a better job position,
innovation of the merchandise which can need additional budget which will also affect
pricing, changes in competitors and other factors to contemplate in making your
Forecast.

4. Calculate anticipated revenue. You have an excellent idea for a business. But now you
wish to grasp the way to calculate start-up costs and expected revenue for business. the kind
of business you open will determine the quantity of cash you may have to open.

5. Separate individual income sources to get a clear picture of potential ups and downs
from each revenue stream. Revenue streams are the assorted sources from which a business
earns money from the sale of products or the availability of services. the kinds of revenue
that a business records on its account rely upon the kinds of activities dole out by the
business.

6. Constantly review and update the forecast to reflect changes in your business. Once
your business is established and running well, you will be inclined to let things still run as
they are.

FORECAST THE COST TO BE INCURED

Financial forecast assists you to satisfy your business goals. they are a future prediction
of your business finances, as compared with statement, which provides details of actual
results or progress. Predicting the financial way forward for your business is not easy,
especially if you are starting a business and do not have a trading history. However,
forecasting and adjusting frequently will enable you to become more accurate. Monthly or
weekly forecasts is also necessary when starting your business, experiencing zoom, or having
financial difficulties. Regular forecasts allow you to closely monitor your finances and
develop strategies to mend problems before they become major issues. Monthly or quarterly
forecasts is also more appropriate for a stable, established business.

Start-up costs
Whether starting a new business or purchasing an existing one you will need to factor in
startup costs, such as:
 • legal or accounting fees
• insurance costs
• furniture, equipment, supplies or fit-out
• stock
• advertising
• permits
• cash required to fund the business until you start collecting payments from customers
• staff wages
• leasing costs of property, plant, and equipment

Starting a business often costs quite you expect; it's a decent idea to feature an additional 20
percent to your forecast to permit for unexpected expenses.

COMPUTE FOR PROFIT

It is important for a business to grasp what proportion profit they have made to grant it a
thought on whether the business is successful. With most money getting in and out of a business,
it is not always easy to determine whether what a little business owner is doing is truly making
money. By calculating profit, it helps give some clarity. If a business is making a profit it can:
• expand and grow
• attract more investment
• employ more staff

WHAT IS PROFIT?
- Profit is the difference between the price and cost when talking about one item. When
dealing with higher volumes of items, total profit is the difference between revenue and
total cost.
- Profit is the incentive behind most business transactions.

To recap and understand what profit is:

• first remember that cost is money spent,
• then revenue is money earned,
• and finally, profit is money gained.

How to calculate Profit?

Profit = Price – Cost

Total Profit = Revenue - Total Cost or expressed differently,

Total profit = unit price * quantity - unit cost * quantity

Depending on the quantity of units sold, the following are the variables used to determine
Profit:
1. cost - the amount for which items are acquired or produced, also known as the
cost of goods sold,
2. unit cost - the amount for which a single item is acquired or produced,
3. price - price for which the items are sold,
4. unit price - the amount for which a single item is sold,
5. quantity - the number of items for which the profit is calculated,
6. total cost - cost multiplied by the number of items,
7. discount - the percentage price reduction,
8. total profit - total amount of money gained.
C. Independent Activities (Formative)

ACTIVITY A: FORECASTING REVENUE (40 points)

List down 5 products that you want in starting up your business. Be
more unique in giving a company name. Using Microsoft Excel
application or manual computation, make a forecast revenue of your
business.

COMPANY NAME
Revenue Forecast
As of October 30, 2020

ACTIVITY B: Compute for Profit (10 points)

Fill up the following table:
IV. REFLECTION

V. ASSESSMENT
Post Test
Multiple Choice: Choose the letter that you think is the best answer to each of
the following questions. Write the letter of your choice on your answer sheet.

1. It assists you to satisfy your business goals.

A. Profit B. Revenue C. Financial forecast D. forecast

2. It is the difference between the price and cost when talking about one item.
A. Profit B. Revenue C. Financial forecast D. forecast
3. The amount for which a single item is sold.
A. unit cost B. cost C. unit price D. total cost

4. The cost multiplied by the number of items.

A. unit cost B. cost C. unit price D. total cost
 5. The amount for which a single item is acquired or produced.
A. unit cost B. cost C. unit price D. total cost

6. The amount for which items are acquired or produced, also known as the cost of goods
sold.
A. unit cost B. cost C. unit price D. total cost

7. It is the total amount of money gained.

A. unit cost B. cost C. total profit D. total cost
8. It is the percentage price reduction.
A. unit cost B. discount C. total profit D. total cost

9. A __________ is an educated prediction for the upcoming year about how

much money your company will likely bring in.
A. Profit B. Revenue C. Financial forecast D. forecast

10.It is that the amount of cash that a corporation receives during a selected
period, including discounts and deductions for a returned merchandise.
A. Profit B. Revenue C. Financial forecast D. forecast

Enrichment Activities

Research the following:

1. How to forecast the revenues of the business?
2. How to forecast the costs to be incurred?
3. How to compute for profits?

References:

Entrepreneurship: A Workbook by our Lady of Fatima University

Venzon, Wilbert C. Entrepreneurship

Prepared by:

EDWARD B. ACABAL
Teacher III