Recall the meaning of:

Capital

Expenses

Gain

Have you tried to earn money by selling a product?

What is that product?

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What does selling price mean?

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Selling price - The actual final price of a product or service that company charges a purchaser to buy the item.

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Look at the sample:

What is the item/listed in the chart?

If you were to sell the item, what will be the price per piece?

What are the steps in computing the selling price?

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Steps on how to get the selling price and the possible income

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Project: Beaded bracelet

1. Add all the cost of materials plus cost labor to get the unit cost for each bracelet.

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Materials ------------- Php 60.00

Labor (Php 30.00/

bracelet)------------ Php 30.00

Php 90.00

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2. Count how many beaded bracelets were made. Multiply this with total cost of materials plus labor to get your capital.

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• Php 90.00 x 10 bracelets =

Php 900.00 (capital)

4. Add the mark-up to your capital. The sum will be the selling price.

Php 90.00

+ 18.00

Php 108.00 - selling price

3. Multiply Php 90.00 x 20% for mark-up purposes.

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Php 90.00

X 20% (.20)

Php 18.00 mark-up price

Define Business income, Revenue & Expense

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Business Income

• is the amount of gain earned from a sale of a service and/ or product after deducting all incidental expenses incurred by the business.

Revenue

• is the amount of money received (or to be received) in exchange for product and/or services provided and sold. Revenue includes gross receipts on the sale of service – or gross sale of product.

Expense

• is the amount of money paid (or to be paid) in exchange for product and/ or service received and purchased. Sample expenses include inventory purchases, salary and wages, transportation, advertising, electric and water bills, communication, professional fees, etc.

Steps in Computing Business Income

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1. Identify all the products and/or services sold in a given period and then total the amount. The total represents the revenue.

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2. Identify all the cost you pay in order to operate your business in the same given period. The total represents your total expenses.

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3. To compute your business income, subtract your total expenses against your total revenue.

Group Activity:

Compute the selling price & possible income

Group 1 & 3

Group Activity:

Compute the selling price & possible income

Group 2 & 4

Seat work: Compute the selling price & possible income

***use 20% as mark-up price

Project: Shoe Rack

Pieces: 4

Cost of Materials: Php 2000

Labor: Php 180

What is the selling price?

What is the possible income?

Your uncle put up a bracelet business, he’s just guessing the price for each item. What will be the consequence of his action? What will you do?

In order to get the selling price of your selected project, what are you going to do?

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What are the steps in getting the selling price and income?

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Multiple Choices. Write the letter of the correct answer.

1. To compute the unit ______ of each finished article, add the cost of materials and cost of labor.

1. Cost c. Gain

b. Earned d. Revenue

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2. The sum of mark-up price and capital is the _____________.

1. Revenue
2. Selling price
3. Expenses
4. Inventory

3. This refers to the amount of gain earned from a sale or service/product sold.

1. Revenue
2. Selling price
3. Expenses
4. Income

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4. Refers to the amount of money received in exchanged for the product sold.

1. Revenue
2. Selling price
3. Expenses
4. Income

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5. Refers to the amount of money paid in exchanged for product received and purchased.

1. Revenue
2. Selling price
3. Expenses
4. Income

Think of a project. List down your capital, labor needed and possible expenses. Compute your profit and report to the class.

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SUPPLEMENTARY ACTIVITIES

ACTIVITY 1:

COMPUTING INCOME FROM SALES

Direction: Answer the crisscross puzzle below:

Across

1. amount

5. spending

6. income received

Down

2. money earn

3. itemized list

4. selling good or services

ACTIVITY 2:

Direction: Compute the selling price and the possible income