WEEK 4

ENTREPRENEURS
HIP
FORECASTING THE
REVENUES OF THE
BUSINESS
MARY JOSEPH E. OCO
 LEARNING
COMPETENCIES

identify essential factors in forecasting

revenues and costs.

calculate mark-up and selling price of a

product or merchandise.
 GUESS THE PICTURE.
Direction: Given with the following pictures, fill in the following blanks
below to form a meaningful word. Two (2) points for each
correct word

ACTIVITY 1
Have you tried estimating the time that it
takes you to travel from home to school?
Directions: Write your estimate in Estimated Time column, after arriving
to school fill in the Actual Time in the blank provided.
ACTUAL TIME

ESTIMATE TIME

1._________________ 1._________________
2._________________ 2._________________
3._________________ 3._________________
 Guide
Questions:
How close were your estimates compared to the What do you think were the factors that might have
actual time? Did your estimate fall short compared contributed to getting you early to school?
to the actual time?

On the other hand, does your actual time exceed What do you think were the factors that might have
your estimates? contributed in arriving later than your estimated
time?
 FORECASTING
Why forecast?
Forecasting is a tool used in planning that Forecasting depends on data from the
aims to support management or past and present and to make
a business owner in its desire to adjust and
meaningful
cope with uncertainties of the future.
estimates on revenues and costs.

Entrepreneurs use forecasting

Making
techniques to determine events that
informed estimates reduces risks that
might affect the operation of the
might be experienced by the
business
entrepreneur in the future.
 FORECASTING THE
REVENUE OF THE BUSINESS
Revenue
is a result when sales exceed
the cost to produce goods or
render the services. Revenue
is recognized when earned,
whether paid in cash
or charged to the account of
the customer.
Sales SERVICE
INCOME
used especially when the
nature of business is is used to record revenues
merchandising or retailing earned by rendering
services.
FACTORS TO CONSIDER IN
FORECASTING REVENUE
FACTORS TO CONSIDER IN
FORECASTING REVENUE
The economic condition of the
country
When the economy grows, its growth is
experienced by the consumers. Consumers
are more likely to buy products and
services.
FACTORS TO CONSIDER IN
FORECASTING REVENUE
The competing businesses or
competitors.
Observe how your competitors are doing business.
Since you share the same market with them,
information about the number of products sold daily
or the number of items they are carrying will give
your idea as to how much your competitors are
selling.
FACTORS TO CONSIDER IN
FORECASTING REVENUE
Changes happening in the
community.
Changes happening in the environment
such as customer demographic, lifestyle and
buying behavior give the entrepreneur a
better perspective about the market.
FACTORS TO CONSIDER IN
FORECASTING REVENUE
The internal aspect of the business

Another factor that affects forecasting

revenues in the business itself. Plant
capacity often plays a very important
role in forecasting.
 Fit Mo’to Ready to Wear
EXAMPLE 1 Online Selling Business
Ms. Fashion Nista recently opened her dream business and named it Fit Mo’to Ready to Wear
Online Selling Business, an online selling business which specializes in ready to wear clothes
for teens and young adults. Based on her initial interview among several online selling
businesses, the average number of t-shirts sold every day is 10 and the average pair of
fashion jeans sold every day is 6. From the information gathered, Ms. Nista projected the
revenue of her Fit Mo’to Ready to Wear Online Selling Business. She gets her supplies at a
local RTW dealer in the city. The cost per piece of t-shirt is 90 pesos, while a pair of fashion
jeans costs 230 pesos per piece. She then adds a 50 percent mark up to every piece of RTW
sold.
 Fit Mo’to Ready to Wear
Mark up refers to the amount Online Selling Business
added to the cost to come up
with the selling price.

Mark Up Price = ( Cost x Desired Mark Up Percentage)

Mark Up for T-shirt =
Mark Up for T-shirt =
 Fit Mo’to Ready to Wear
Mark up refers to the amount Online Selling Business
added to the cost to come up
with the selling price.

Mark Up Price = ( Cost x Desired Mark Up Percentage)

Mark Up for T-shirt = ( 90.00 x .50)
Mark Up for T-shirt = 45
 Fit Mo’to Ready to Wear
Online Selling Business
In calculating for the
selling price

Selling Price = Cost + Mark Up

Selling Price =
Selling Price for T-shirt =
 Fit Mo’to Ready to Wear
Online Selling Business
In calculating for the
selling price

Selling Price = Cost + Mark Up

Selling Price = 90.00 + 45.00
Selling Price for T-shirt = 135.00
 Compute the mark up of the
GROUP ACTIVITY given problem.

Kyle, a local entrepreneur is planning to sell 10 liter-bottled waters in

his sari-sari store. A local water purifying business in the city sells
their 10-liter bottled water for 20 pesos each. Kyle wants to add 25 per
cent mark up from the original cost of 10 liters bottled water.
Calculate how much mark-up Kyle should add. Determine how much
should be the selling price for 10-liter bottled water.
GENERALIZATION

“How would you compute for the mark

up price?”
 Compute the mark up of the
EVALUATION given problem.

Luna sells fruits in a local fruit stand in the market. She gets
her fruits from a local wholesaler in the city. Luna charges 40
per cent mark up for every kilo of
watermelon she gets. Suppose the cost per kilo of watermelon
is 25, how much is the selling price for one kilo of
watermelon?
THANK YOU