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EntrepreneurshipAdditional Activities: Compute gross and profit 1 .a watch store owner decided to offer 20% discount for a particular brand of watch that sells at P35,000. By doing so, his average sales increased from 5 watches to 12 watches a day. If he bought one watch at a Price of P22,000 from t...

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Entrepreneurship

Additional Activities: Compute gross and profit 1.a watch store owner decided to offer 20% discount for a particular brand of watch that sells at P35,000.00. By doing so, his average sales increased from 5 watches to 12 watches a day. If he bought one watch at a Price of P22,000.00 from the supplier, by how much was his daily profit increased or decreased by offering such discount on the watch? Answer: P6,000.00 Solution: Original Price Cost – P35,000.00 Discount – 20% Discounted Price – P28,000.00 Supplier Price - P22,000.00 Average No. Items Sold Daily – 5 to 12 watches daily P35,000.00 ÷ 100 × 20 = P7,000.00 P35,000.00 - P7,000 = P28,000.00 is the Discounted Price (Original Price Cost – Discounted Price = Gross Profit) (P35,000.00 – P28,000.00 = P6,000.00) As a result, even though he offers a 20% discount, his daily profit increased by P6,000.00 discount. 2.Michelle went to Baguio and bought 20 jars of strawberry jam for P3,500.00 with 1.5% discount. When she got back to Manila, she sold 10 of the jars for a total of P1,800.00 and the rest as P185.00 each. How much profit did Michelle again? Answer:

P675.00 Explanation: 3,500.00 x (1-15/02) = 2975.00 18,000.00 (20-10) x/1850.00 = 1,800.00 + 1,850.00 = 3,650.00 3,650.00-297,500 = 675.00 So, the gross profit Michael gained is P675.00

WHAT’S MORE: COMPUTATION OF GROSS PROFIT Answer the given problem. 1. Annie bought one dozen smartphones for P200,000.00 with a discount of 5%. She sold half a dozen at a price of P18,000.00 per unit. However, a new model of smartphones became available in the market, so she sold the remaining half dozen @ P12,000.00 each unit. What was her profit or loss? Answer: Annie got loss of P10,000.00 Profit is not accessible Explanation: Annie bought one dozen of smartphones 12 unit for P10,000.00 5% discount = 200,000.00 100 = 2,000.00 x 5 = 10,000.00

Purchase Amount - P200,000.00 – 10,000.00 = P190,000.00 6 Unit price = P18,000 x 6 = P108,000.00 Another 6 Unit price = P12.000 x 6 = P72,000.00 Selling Price = 108,000.00 + 72,000.00 = P180,000.00 Loss/Profit = 190,000.00 – 180,000.00 = P10,000.00 So, Annie got loss of P10,000.00

Compute the following requirements: A. Gross Profit rate: (Gross profit/(loss) divided by sales) (16,000/216,000) = 0.07 or 7% B. Operating Profit Margin rate: (Operating profit/ (Loss) divided by sales) (-20,000/180,000) = -0.11 or -11% C. Net Profit Margin rate: (Net Profit/(Loss) divided by sales) (-10,000/180,000) = -0.06 or -6% D. Return on Investment: (Net Profit/(Loss) divided by sales) (-10,000/190,000) = -0.05 or -5% Now ask yourself the following questions:

1.Is creativity present in the operation of ordinary small businesses along the streets and highways and in your neighborhood? why do you say so? Answer: Yes. Creativity is present in the operation of the small businesses along the streets and highways and in our neighborhood, because encouraging creativity in the workplace can help boost small business success. With creativity, small businesses can not only meet the existing challenges but also think ahead. 2.will you consider the daily business practices of the small owner within the concept of entrepreneurship? why? Answer: Yes, business practices of small business owner are within the concept of entrepreneurship because small businesses is the backbone of the economy. They foster local economies, keeping money close to home and supporting neighborhoods and communities.

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