GRADE

LESSON 17
BUSINESS MATH
 DEMO TEACHING
chad lowe villarroya
 Good Day!
definitions

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questions

concept
primer
recall

Conduct of Preliminaries
Business Mathematics
 Lesson
Objective
At the end of the 60-minute session,
80% of the class are expected to:
s:
a.Define and describe break-

objectives
questions
definition

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even
b.Compute the break-even point
c.Analyze business costs and
revenue to determine the
 A Balancing Act
CHALLENGE

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Materials:
3 Folder Slides
A bottled water with string attached
Table Top
Can the water bottle hang freely
using only the materials provided?
 Center
of

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definition

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primer
It is the point at which weight is
recall

Gravity
evenly dispersed and all sides are
in balance.
 definition
questions
01

Profit
02

Loss

recall
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 Are you familiar with the words
presented?

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definition

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Where are they usually used?

Can you define each word?

 Loss

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definition
Profit

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is a financial benefit that is The case when the net
realized when the amount of sales of goods is less
revenue gained from a business that cost
activity exceeds the expenses,
costs, and taxes needed to
sustain the activity
(Investopedia,2019)
 Selling Type of
Price
Business
Give some details to
the start-up business
Cost for
Production
Cost for
Rent
Cost Assuming in a
for Raw
Materials
Payment Salaries month’s time

for utilities
Electric Bill, Water, Assuming you have
Cable, etc 2 employee
 SORT IT!

FIXED COST VARIABLE COST

EXPECTED DEPENDENT
MONTHLY EXPENSES EXPENSES
 CONCEPT
FIXED COST
Expenses to be paid
FIXED by a company
COST TOTAL
(FC) VARIABLE COST

COST Corporate expense

that change in
(TC) proportion to
VARIABLE production
COST TOTAL COST
(VC) Includes fixed cost and variable
Cost (TC=FC+VC)
 Question:
How will our start-up business earn
money?
 REVENUE
IS THE INCOME GENERATED FROM
BUSINESS OPERATIONS
R = px
 Question:
How would you know that you are
gaining profit? Incurring loss?
 Question:
What happens if your cost and
expenses is equal to your sales?
 LET RECALL
How did we balanced the bottled
water using only the three folder
slides?
 BREAK EVEN POINT
Defined as the price at which sales
is equal to the cost, generating zero
profit or zero loss
 Note this:
BEP =
Fixed Cost
Variable Cost - Selling Price
 CONCEPT CHECK:
1. How can we find the break even
point?
2. How can we find the Total Cost?
3. How can we find the Revenue?
 Question:
If we were to find the break even
point of our start up business, what
would it be?
 How are we going to solve this?
1. Identify the fixed cost and
variable cost.
2. Write the Total Cost equation.
3. Identify the Selling Price.
4. Write the Revenue Equation.
 FIXED COST VARIABLE COST

SALARIES COST FOR

COST FOR RENT PRODUCTION
UTILITIES COST FOR
RAW MATERIALS
 How are we going to solve this?
5. Graph the total cost equation
and revenue equation. (Use the
Graphing App)
6. Compute the break-even point.
7. Analyse.
 Note that:
Total Cost = Revenue
This is to find the break even.
 Questions:
1. What is the break-even point?
2. What does it mean?
3. How will this help us in our start up
business?
4. How many units should be sold in a
month to achieve break-even? Gain
profit?
 BUSINESS ANALYSIS

GROUP ACCORDING Each group is

TO ENTRY PASS You are given PREPARE YOUR given 1 minute
COLOR
start up
businesses. You
PRESENTATION to present
need to identify
1 the break even 3
point
Arrange
yourselves in
team colors in
three counts.
2
READ THE
Using the
materials
provided. Prepare
a short analysis
10
of your start up
TASKS AT business BUSINESS
HAND PRESENTATION
 Question:
What is the difference of variable
cost and fixed costs?
 Question:
What are total costs?
 Question:
What is revenue?
 Question:
What is break-even?
 Question:
How do you find the break even
point? What does it mean?
Please prepare for a
short quiz.
You’ll use your entry/exit cards as
your answer sheets.
 RANDOMIZER

BACK
 RANDOMIZER

+10

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 RANDOMIZER

+20

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 RANDOMIZER

+30

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 RANDOMIZER

+40

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