ENTREPRENEURSHIP
Module 7- Forecasting Revenues and Costs Department
LYKA ANNE JEL B. DAYONOT XII-BOHR
WHAT I KNOW
1. C
2. A
3. D
4. B
5. D
6. C
7. C
8. C
9. B
10. C
11. D
12. B
13. A
14. D
15. B
Lesson 1: Forecasting the Revenues of the Business
WHAT’S MORE
TABLE 1
Projected Daily Revenue
Ang Walis Tingting ni Aling Minda
Projected Projected
Mark-up Volume Revenue
Merchand Cost per ____% Selling Price (D) (E)
ise/Produc Unit (A) (B) (C) Average No.
ts of Items Sold (Daily)
(Daily)
Broomstick A = 30.00 B= C = (30 + 15) D = 30 E = (45 x 30)
s (30x .50) = 45 = 1350
= 15
Total 30.00 15 45 30 1350.00
TABLE 2
Projected Monthly and Yearly Revenue
Ang Walis Tingting ni Aling Minda
Projected Projected Projected Projected
Volume Revenue Volume Revenue
Selling Average No. Average No.
Merchandise Price of Items Sold (Monthly) of Items Sold (Yearly)
/Products (Monthly) (Yearly)
C= F= G= H= I=
(A + B) (D x 30 days) (C x F) (D x 365 days) (C x H)
Broomsticks C F = (30 x 30) G = (45 x 900) H = (30 x 365) I = (45 x 10950)
= 45 = 900 = 40,500 = 10,950 = 410,625
Total 45 900 40,500 10,950 492,750
TABLE 3
Projected Monthly Revenue
Ang Tingting ni Aling Minda
Month January February March April May June
Revenue 40,500.00 42,525.00 44,651.25 46,883.81 47,228.00 51,950.80
Month July August September October November December
Revenue 51,950.80 51,950.80 49,353.26 46,885.59 49,229.87 54,152.86
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
Merchandise/ Cost per Unit Mark-up ____% Selling Price
Products (A) (B) (C)
10 Liter Bottled Water A = 20.00 B = (20 x .25) C = (20+5)
=5 = 25.00
Total 20.00 5.00 25.00
LESSON 2: Forecasting the Costs to be Incurred
WHAT’S MORE
TABLE 4
Projected Cost of Goods Sold (Monthly)
Projected Volume
Merchandise/Products Cost per Average No. of Projected Costs of Purchases
Unit Items Sold (Monthly)
(Monthly)
(A) F = (D x 30 days) J = (A x F)
Umbrellas 90.00 F = (12 x 30) = 360 J = (90.00 x 360) = 32,400.00
Total 90.00 360 32,400.00
TABLE 5
Freight-In Paid
Projected Volume
Merchandise/Products No. of Items
Average No. of Freight In (1 Month Only)
Sold (Daily)
Items Sold
(Monthly)
(A) F = (D x 30 days) J = (F/12) x ₱200.00
Umbrellas 12 F = (12 x 30) = 360 J = (360/12) x ₱200.00 = 6000.00
Total 12 360 6000.00
TABLE 6
Projected Monthly Costs (Year 1)
Month January February March April May June
Costs of 32,400.00 32,400.00 32,400.00 32,400.00 32,400.00 32,400.00
Goods
Sold
Expenses 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00
Total Cost 38,400.00 38,400.00 38,400.00 38,400.00 38,400.00 38,400.00
&
Expenses
Month July August September October November December
Costs of 32,400.00 32,400.00 32,400.00 32,400.00 32,400.00 32,400.00
Goods
Sold
Expenses 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00
Total 38,400.00 38,400.00 38,400.00 38,400.00 38,400.00 38,400.00
Cost &
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.
ASSESSMENT
1. A
2. C
3. B
4. D
5. C
6. A
7. B
8. C
9. B
10. C
11. D
12. A
13. C
14. B
15. A