Module 7

LESSON 1

WHAT I KNOW

1. C 6. C 11. D
2. A 7. C 12. B
3. D 8. C 13. A
4. B 9. B 14. D
5. D 10. C 15. B

WHAT’S NEW

Estimated Time Actual Time

15 mins 14 mins

15 mins 13 mins

15 mins 15 mins

The actual time is less than my estimated time. One factor that may have contributed to
arriving at school early is that the driver drives quickly and there is very little traffic.

WHAT’S MORE

Table 1

Projected Daily Revenue

Aling Minda’s Broomsticks

Projected
Cost Projected
Mark up Selling Volume
Per Revenue
______ % Price (D)
Unit (E)
Merchandise/ (B) (C) Average No.
Product (A)
of Items (Daily)
Sold (Daily)
(A) (B)= ( A x .50 ) (C) = ( A + B ) (E) = (C x D)
(D)
Broomsticks
25 12.5 37.5 30 1,125
(walis tingting)
Total 25 12.5 37.5 30 1,125
 Table 2

Projected Monthly and Yearly Revenue

Aling Minda’s Broomsticks

Projected
Projected Volume
Volume Projected
Projected Revenue
Selling Revenue Average No.
Merchandise/ Price Average No. of Items
Product of Items Sold (Yearly)
Sold (Yearly)
(Monthly) (Monthly)
(C)= H = (D x 365
F= (D x 30 days) G = (C x F) I = (C x H)
(A + B) days)
Broomsticks
37.5 900 33,750 10,950 410,625
(walis tingting)
Total 37.5 900 33,750 10,950 410,625

Table 3

Projected Monthly Revenue

Aling Minda’s Broomsticks

Month January February March April May June

Revenue 33,750 35,437.5 37,209.38 39,069.85 41,023.34 45,125.67

Month July August September October November December

Revenue 45,125.67 45,125.67 45,125.67 45,125.67 45,125.67 45,125.67

WHAT I HAVE LEARNED

Entrepreneurs use FORECASTING techniques to determine events that might affect the
operation of the business. Factors such as EXTERNAL and INTERNAL much be considered to avoid
possible complications in the future. To forecast revenues, it is best that the entrepreneur must be
acquainted with the COST, and MARK-UP to determine the selling price of a product. This way, the
selling price is then multiplied to the projected volume to arrive with the PROJECTED REVENUE.

The entrepreneur should always present the assumptions to consider in projecting revenues,
may it be seasonality, economic slowdown or changes in customer preferences and the like. This will
help achieve the best educated estimate of your revenues.

WHAT I CAN DO

Kyle, a local entrepreneur is planning to sell 10 liter bottled water 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 liter bottled water. Calculate how
much mark-up Kyle should add. Determine how much should be the selling price for 10 liter bottled
water.
Answer:

Mark up Price= (cost x desired markup price)

Mark up for Bottled Water= (20.00 x 0.25)

Mark up for Bottled Water= 5.00

In calculating for the selling price, the formula is as follows:

Selling price= Cost + Mark up

Selling price= 20.00 + 5.00

Selling price for Bottled Water= 25.00

LESSON 2

WHAT’S NEW

Breakdown on Daily Allowance

Name: Rizza May D. Garcia

Daily Allowance: ₱200

Less: Daily Expenses

Food ₱50

Fare ₱50

School Supplies 0

Recreation 0

Others 0

Total: ₱100

WHAT’S MORE

Table 4

Projected Cost of Goods Sold (Monthly)

Projected Volume
Cost
Projected Costs of
Merchandise/ Per Average No. of Purchases (Monthly)
Product Unit Items Sold (Monthly)

(A) F= (D x 30 days) J= (A x F)
Umbrella 90 360 32,400
Total: 90 360 32,400
 Table 5

Freight-in paid

Projected Volume

No. of Items
Merchandise/ Average No. of Freight in (1 month only)
Sold (Daily)
Product Items Purchased (Monthly)

(A) F= (D x 30 days) J= (F/12) x 200.00

Umbrella 12 192 3,200
Total: 12 192 3,200

Table 6

Projected Monthly Costs (Year 1)

Month January February March April May June

Cost of Goods 35,600 35,600 35,600 35,600 35,600 35,600
Sold
Expenses 0 0 0 0 0 0
Total Cost & 35,600 35,600 35,600 35,600 35,600 35,600
Expenses

Month July August September October November December

Cost of Goods 35,600 35,600 35,600 35,600 35,600 35,600
Sold
Expenses 0 0 0 0 0 0
Total Cost & 35,600 35,600 35,600 35,600 35,600 35,600
Expenses

WHAT I HAVE LEARNED

The entrepreneur should always present the assumptions to consider in projecting costs,
may it be cost of goods sold or operating expenses. This will help achieve the best educated
estimates of your costs. The entrepreneur must clearly identify costs incurred in the business
operation. COST OF GOODS SOLD is the amount of goods or merchandise sold during a period of
time incurs a large portion of the total cost of a MERCHANDISING business. The cost of goods sold
can be calculated by simply multiplying NUMBER OF ITEMS SOLD EVERY MONTH to its
corresponding COST PER UNIT. A cost in transporting the goods from the supplier to the seller or
FREIGHT-IN is then added to Net Cost of Purchases.

WHAT I CAN DO
 Projected Costs of Good Sold (Daily)

Business Name: Street Café

Projected Volume
Cost
Projected Costs of
Goods/ per Average No. of Purchases (Daily)
Merchandise Unit Items Sold (Daily)

Milktea 80 50 4,000
Fries 55 70 3,850
Total: 135 120 7,850

ASSESSMENT

1. A 6. A 11. D
2. C 7. B 12. A
3. B 8. C 13. C
4. D 9. B 14. B
5. C 10. C 15. A

ADDITIONAL ACTIVITIES

Projected
Volume Projected
Cost Mark-up Selling (D) Revenue (E) Projected
Per ___% Price Costs of
Merchandise/ Unit (B) (C) Average No. of Purchases
Product (A) Items Sold (Daily)
(Daily)
(Daily)

(B)= (A
A C=A+B D E=CxD K = (A x D)
x .50)
180.0
T-Shirt 90.00 270.00 20 5,400.00 3,600.00
0
130.0
Short 65.00 195.00 15 2,925.00 1,950.00
0