The document discusses how to manage costs and expenses to determine if a business is successful or failing. It explains that costs include production and operating expenses, and income is calculated by subtracting total expenses from gross sales. Keeping detailed inventory records of products sold is also important to identify saleable versus non-saleable items and monitor if the business is gaining or losing money.

1. Prepared by:
JAYPEE S. TILLOR
EPP 6 Teacher

2. Review:
1. What are the reasons of
packaging household linens?

3. Review:
2. Why is it important to make
a creative packaging for
household linens?

4. Checking of
Assignments

5. Look at the pictures:

6. Questions:
*What can you say
about the picture?
*What can you say
about the statements
in the picture?

7. Questions:
*Do you think the store
owners in the picture are
gaining?
*What can store owners
and businessmen know if
they are gaining or not?

8. The success and failure of a business
depends on the management of the
cost and expenses.
*Cost refers to expenses incurred in the production
and operation of the business.
*Production expenses include cost of materials and
other supplements.
*To determine the selling price:
*Add the cost of production and cost of operation.
*Then, add the mark-up price which represents your
income.

9. Example:
*Selling price of a household
linen
*Cost of production - ₱ 50.00
*Mark-up price – 50% of the
cost
*Answer: ₱ 75.00

10. The success and failure of a business
depends on the management of the
cost and expenses.
*To determine the income for the month:
* Deduct gross sales from total expenses.
*The inventory gives a detailed description on the
household linens sold.
*It is important to keep a record of all information or
data on production and sale of the different products.
*The data will help in determining whether the items
are saleable or not and whether the business is gaining
or losing.

11. Example:
*Income for the month of
August
*Gross sales for the month of
August - ₱ 25, 000.00
*Total expenses - ₱ 10, 000.00
*Answer: ₱ 15, 000.00

12. GENERALIZATION
1. What is cost?

13. GENERALIZATION
2. Why is it important to determine
the selling price and income?

14. GENERALIZATION
3. Why is it necessary to conduct an
inventory?

15. Group Work:
Each group will present a short
dramatization on managing the
cost and expenses of a store
and on conducting an
inventory.

16. Group Work:
Rubrics
Points
10 The message of the dramatization is clear, well
presented, done with cooperation.
8 The message of the dramatization is clear, not well
presented, done with cooperation.
6 The message of the dramatization is not clear, well
presented, done with cooperation.
4 The message of the dramatization is not clear, not
well presented, with little cooperation.
2 No dramatization at all.

17. Application:
*Solve. Show your solution.
*Selling price of a household linen
*Cost of production - ₱ 30.00
*Mark-up price – 50% of the cost
*Answer:
*Income for the month of July
*Gross sales for the month of July - ₱ 30, 500.00
*Total expenses - ₱ 18, 900.00
*Answer:________

18. Assignment:
*Do the following:
*Interview two (2) store owners in your area.
*Ask the following questions:
*What are the saleable products in your
store?
*What did you do to the items that are not
saleable?
*Do you keep a record of your sales?
*Is your store gaining or losing?

19. Wrap-up: