NAME:__________________________________________

GRADE/SECTION:______________________________
11/12

ENTREPRENEURSHIP
Quarter III – Week 4
Screening the Proposed Solution
based on Viability, Profitability
and Customer Requirements

CONTEXTUALIZED LEARNING ACTIVITY SHEETS

SCHOOLS DIVISION OF PUERTO PRINCESA CITY
Entrepreneurship – Grade 11/12
Contextualized Learning Activity Sheets (CLAS)
Quarter III - Week 4: Screening the Proposed Solution based on Viability, Profitability
and Customer Requirements
First Edition, 2020

Republic Act 8293, Section 176 states that: No copyright shall subsist in any work
of the Government of the Philippines. However, prior approval of the government agency or
office wherein the work is created shall be necessary for the exploitation of such work for a
profit. Such agency or office may, among other things, impose as a condition the payment
of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this CLAS are owned by their respective copyright holders.
Every effort has been exerted to locate and seek permission to use these materials from
their respective copyright owners. The publisher and authors do not represent nor claim
ownership over them.

Published by the Schools Division of Puerto Princesa City

Development Team of the Contextualized Learning Activity Sheets

Writer: Marvelene A. Lui
Content Editors: Marie Vic C. Velasco PhD, Haydee C. Hitosis and Shiela M. Caab
Language Editor: Imelda O. Legaspi
Proofreader: Annielyn A. Lagan
Reviewers: Marie Vic C. Velasco PhD, Evelyn C. Silvestre and Maricar T. Caliwag
Illustrator: Marvelene A. Lui
Layout Artist: Joseph D. Aurello
Management Team:
Servillano A. Arzaga, CESO V, SDS
Loida P. Adornado PhD, ASDS
Cyril C. Serador PhD, CID Chief
Ronald S. Brillantes, EPS-LRMS Manager
Marie Vic C. Velasco PhD, EPS-Mathematics
Eva Joyce C. Presto, PDO II
Rhea Ann A. Navilla, Librarian II

Division Quality Assurance Team:

Ronald S. Brillantes
Mary Jane J. Parcon
Warly I. Salido
Haydee C. Hitosis
Joseph D. Aurello
Maricar T. Caliwag
Meguilito D. Campillos

Division of Puerto Princesa City-Learning Resource Management Section (LRMS)

Sta. Monica Heights, Brgy. Sta. Monica, Puerto Princesa City
Telephone No.: (048) 434 9438
Email Address: [email protected]
 Let’s Try
Directions: These questions will help you think about the lesson you are about to learn.
Choose the letter of the best answer and write on the space provided before each number.

_____1. What business ability pays off current liabilities with current assets?
A. liquidity C. solvency
B. profitability D. viability

_____2. Which one is measured by the long-term survival and its ability to sustain profits
over a period of time?
A. liquidity C. solvency
B. profitability D. viability

_____3. Which is referred to an enterprise capacity to meet its long-term financial

commitments?
A. liquidity C. solvency
B. profitability D. viability

_____4. Which of the following is NOT viable if your business is located near the school?
A. cartolina C. slippers
B. paper clips D. socks

_____5. What are the things that the customer requires when purchasing a product or
service?
A. customer needs C. customer request
B. customer wants D. customer complain

_____6. Which of the following is a measurement of efficiency and ultimately business

success and failure?
A. viability C. profitability
B. solvency D. liquidity

_____7. How do you calculate profit?

A. total sales+withholding tax C. total revenue+total expenses
B. total sales-witholding tax D.total revenue-total expenses

_____8. Elegant Trading bought an item worth P 10,500.00 and agrees to pay for it after
three months. Luckily, they sold it after a month and gain a profit of P 2,890.00.
How much is the dealing price?
A. P 2,890.00 C. P 13,390.00
B. P 10,500.00 D. P 7,610.00
From the below table, answer questions 9-10

PRODUCT TOTAL REVENUE TOTAL EXPENSES PROFIT

4. Rubber Shoes 18,820.00 ____________________ 4,360.00
5. Milk 7,530.00 4,920.00 _________________

_____9. How much the total expenses?

A. (P 23,180.00) C. P 23,180.00
B. (P 14,460.00) D. P 14,460.00

1
_____10. How much is the profit?
A. P 2,610.00 C. P 4,920.00
B. P 12,450.00 D. P 7,530.00

Do you have any idea about the word Viability? Kindly give your simple definition of it?
____________________________________________________________________________________
____________________________________________________________________________________

Lesson 1
Understanding Viability of a Product

MELC: Screening the Proposed Solution/s based on viability, profitability and customer
Requirements. TLE_ICTAN11/12PC-Ia-1
Objectives:
1. Define viability
2. Explain the viability of the product
3. Examine the proposed solution based on viability of a product

Let’s Explore and Discover

Look around you! Try to name different businesses that you know
or looking into in for the future. Analyze the picture below and
Unlocking connect to our business World.
of Difficulties
VIABILITY
• Ability of the
company to be
profitable over a
long period of
time
• Returning profit
that is sufficient
to provide return
to the business
owner.

What do you observe from the two (2) pictures? Is there any difference between the
two? In which picture do you think does the term viability apply?________________________
________________________________________________________________________________________

2
 STEPS TO DETERMINE VIABILITY IN BUSINESS
1. Research the Market
➢ Is considered things around you such as blogs, magazines and trade journals
that are aimed at your target client base. Try to look specific industry reports
to get a better idea of the costs and competition in your desired industry.

2. Is there a Unique Selling Preposition?

➢ The uniqueness will be the key to determine the viability of your business
plan. You need to figure out what will make your business rise above the rest.

3. Are there willing and able Customers?

➢ Understand that there are customer interested in your service or product.
Make sure you know who are your target client including their needs even
financial situation.

4. Is there a competitive advantage?

➢ Knowing your competitors strengths and weaknesses will give you a key spot
of filling the gaps. This will give you access to a new set of clients. It gives your
business a reputation for being able to deliver where others cannot.

5. What is the current Economic Situation?

➢ Understand the current economic mood to gauge how your business will fit
your customer needs.

6. Ask for honest feedback

➢ The more honest feedback you are able to gather, the better you will be able
to plan for your actual launch.

7. Consider the timing

➢ Make sure that you schedule your opening day right at the peak of consumer
demand.

8. Think about your Market Strategy

➢ One of the best thing that a business can do is invest in a quality online profile.

9. Initial Funding Stability

➢ As a starter, you must understand that funding necessary to open up a
business. Think an alternative source if you do not have enough saved money.
Consider taking out a small business loan, which would provide you with the
funding that you need immediately.

10. Understand the costs of Starting Out

➢ Considering all the necessary costs such as materials, labor and your
overhead. Remember that your price needs to cover your costs as well as leave
you with profit to take home.

11. Is there Engagement on Social Media?

➢ Opening your social media account for business will help you to find clients
even their feedback according to quality of your service or product.

3
12. Always Be Aware of Financial Status
➢ Make sure to monitor your resources from raw materials to your product.

13. Difference Between Viability and Solvency

➢ Viability is inter-related to solvency. Solvency refers to the capacity of an
enterprise to meet its long-term financial commitments.

14. Difference Between Viability and Liquidity

➢ Liquidity is similar to solvency; however, it takes deeper look at whether or
not a business would be able to quickly sell certain assets to get cash with
suffering loss.

(Source: “What does Viability Means”, Small Business.ng, accessed October 3, 2020.
https://smallbusinessify.com/what-does-viability-mean-in-business/.)

Let’s Practice

Directions: Find the words or terms related to the word

ACTIVITY 1
“Viability”. Words may appear in the grid horizontally, vertically,
or diagonally. Encircle the word and write it on the space provided
below.

F L I F E B L O O D P
A E O O D W A A E O H
R F A U H H C B S B J
L F Q S L K T S A W K
W E P E I L I W W S L
B C K F N B V R F G E
G T L U I P I G R R N
T I G L M P T L S O E
S S I N K S Y B I W R
I T J E X S W R R T G
Y A K S B F E E H H Y
L U R S N E R A R A F
O I E F F E C T I V E
R E L A M T S H A O D
T Y T I L I B A P A C

1. _________________________ 6. _______________________
2. _________________________ 7. _______________________
3. _________________________ 8. _______________________
4. _________________________ 9. _______________________
5. _________________________ 10. ______________________

4
 Directions: You are currently living near the beach area. As a
ACTIVITY 2
young entrepreneur, which of the following business do you think
is viable and can help you to start with your goal? Put √ for viable
businesses and x for not.

_____ 1. Food shacks 6. ________ Music school

_____ 2. Rental boat shop 7. ________ Accommodation huts
_____ 3. Video games store 8._________dinner cruises
_____ 4. Ice cream shop 9. ________ Milk shake bar
_____ 5. Tutoring center 10.________cell phone repair shop

As a young entrepreneur, do you think viability is important? Why?

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

Let’s Do More

ACTIVITY 1 Directions: We will consider the product viable if there is a

growth. It performs well enough to be recommended to others.
We must consider not only the product but also the target
market we have. Add two more products needed on the
mentioned areas:

TARGET MARKET VIABLE PRODUCTS

1. School 1. Snacks
2.____________
3.____________
2. Hospital 1. Alcohol
2. ____________
3. ____________

3. beaches 1. Sunblocks
2. ____________
3. ____________

4. farm 1. Fertilizers
2.____________
3.____________

5. poultry 1.Feeds
2. ___________
3. ___________

5
 ACTIVITY 2 Directions: During this time of pandemic, as a young
entrepreneur what are the products you may consider as
viable in your community. Write at least five.

1. Vegetables
2. ______________________
3. ______________________
4. ______________________
5. _______________________

Do you think young entrepreneurs may survive in this time of pandemic? How?
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________

Directions
Let’s Sum It Up

Directions Screen the proposed solution based on viability of a product by

determining some steps. Connect Column A to Column B.

COLUMN A COLUMN B

Research the market Uniqueness is the key to determine viability of the

business.
.
Timing Monitor your resources from raw materials to your
product.

Market Strategy Invest in a quality online profile

Financial Status Schedule of opening day right at the peak of

consumer demand

Consider specific industry reports to get a better

Unique Selling
idea
Proposition

6
 Lesson 2
Understanding Profitability and Customer
Requirement Needs

MELC: Screening the Proposed Solution/s based on viability, profitability and customer
requirements. TLE_ICTAN11/12PC-Ia-1

Objectives:
1. Define profitability and customer needs.
2. Give example of customer requirement needs
3. Compute profitability of the product

Let’s Explore and Discover

Unlocking of
Difficulties
PROFITABILITY-
measurement of
efficiency and
ultimately business
success and failure.
CUSTOMER NEEDS-
Are the thing that the
customer require
when purchasing a
product or service.

Today’s lesson we will learn more about profits and customer requirements in a product.

CUSTOMER REQUIREMENT NEEDS

Customer needs are the things that the customer require when purchasing a product or
service. Businesses must find out about their customers’ needs in order to be successful.

In order for an entrepreneur or business to be successful, it is key for them to identify and
fulfill customer needs. Most business ideas come from entrepreneur spotting a need for a
product or service.

7
 Four (4) Main Customer Needs
1. PRICE
Price is how much a business charges for its product or service. Customer wants a
fair price when purchasing a product or service. Usually, low prices will draw in
many customers although people ultimately want value for money.

2. QUALITY
Quality relates to the standard of the product or service being offered. Customers
always expect some level of quality, no matter how much they pay for a product or
service. Generally, those paying a low price will expect a lower level of quality and
those paying a higher price will expect a higher level of quality.

3. CHOICE
Choice is very important – many businesses have a range of products and/services
available to suit different groups of customers. Customers have different needs and
desires when buying items.

4. CONVENIENCE
Convenience relates to something being easier, quicker or generally less hassle for
customers.

PROFITABILITY

• HOW TO I CALCULATE PROFIT?

PROFIT is calculated by deducting direct costs, such as materials, labors, and

indirect costs (also known as overhead) from sales. In our accounting rules, sales and
expenses are included in profit when they occur not when they are actually paid so profit
will includes credit sales and purchases even when they are yet to be paid.

Total Revenue less Total Expenses = Profit

• WHY IS PROFIT IMPORTANT?

It is important for a business to understand how much profit they have to have an
idea whether the business is successful.

With so much money going in and out of a business, it is not always easy to see
whether what a small business is doing – actually making money. If the company is
profitable there is an expansion, attract more investment and employ more staff.

• DO PERSONAL EXPENSES AFFECT PROFIT?

Unfortunately, personal expenses will not reduce profit nor will cash taken out of
the business for personal use.

(Source: GCSE Edexel, Customer Needs, “ Accessed January 20, 2021,

https://www.bbc.co.uk/bitesize/guide/zn3847h/revision/1)

Is it important to consider customer needs for gaining a profit? Why?

___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________

8
 Let’s Practice
Directions: Complete the statements by writing the appropriate
ACTIVITY 1 words in the blank. Select your answer in the box below.

Quantity delivery choice standard

Tastes customers quantity prices

1. Convenience relates to something being easier, quicker or generally less hassle

for _________________________.
2. Customers always expect some level of _______________, no matter how much
they pay for a product or service.
3. Quality relates to the ___________________of the product or service being offered.
4. Usually, low _________________will draw in many customers although people
ultimately want value for money.
5. _____________is very important-many businesses have a range of product
and/services available to suit different groups of customer.

Directions: Kindly provide the missing amount needed.

ACTIVITY 2

PRODUCT TOTAL REVENUE TOTAL EXPENSES PROFIT

Shoes 10,000.00 __________________ 4,600.00
Textiles __________________ 3,690.00 4,900.00
Bread 6,360.00 2,820.00 __________________
School Supplies 12,363.00 ____________________ 2,503.00
Gadgets ___________________ 18,930.00 7,896.00

As a young Entrepreneur, is it important to always apply the formula of profitability?

Why? ___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

9
 Let’s Do More

ACTIVITY 1 Directions: Complete the missing amount by applying the

simple computations in profitability.

ABC Company
Income Statement
For the period ended January 2020

Service Revenue P 20,000.00

Less: Expenses
Salaries and Wages P 2,500.00
Supplies Expense 3,800.00
Transportation Expense 1.) ____________
Utilities Expense 1,890.00 P ___________ 2.)

Net Income/Loss P ___________ 3.)

ACTIVITY 2 Directions: Using the simple formula of profitability, analyze

and compute the given data below:
Revenue 175,000.00
Equipment 12,500.00
Accounts 8,950.00
Receivable
Land 80,000.00
General and 13,780.00
Administrative
Expenses

1. How much is the profit?

_________________________
_________________________
2. Is there any possibility to grow the business?
_________________________

If you are engaged in a business either big or small, is it important to always have a
profit? Why? __________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________

10
 Let’s Sum It Up

Directions Use the clues provided to fill-in the crossword puzzle with the
correct words.

Viable price margin choice

Convenience expenses interest overhead profit

Across

1. Indirect costs
5. Customer needs and desires when buying
goods
6. Standard of the products or services being
. offered

Down
2. Business charges for its products or
services
3. Less hassle for customers
4. Total revenue less total expenses

Let’s Assess

Directions: These questions will help you think about the lesson you are about to learn.
Choose the letter of the best answer and write it on the space provided.

_____1. Which of the following is a measurement of efficiency and ultimately business

success and failure?
A. viability C. profitability
B. solvency D. liquidity

_____2. How do you calculate profit?

A. total sales+withholding tax C. total revenue+total expenses
B. total sales-witholding tax D. totalrevenue-total expenses

11
_____3. Elegant Trading bought an item worth P 10,500.00 and agress to pay for it after
three months. Luckily, they sold it after a month and gain a profit of P 2,890.00.
How much is the dealing price?
A. P 2,890.00 C. P 13,390.00
B. P 10,500.00 D. P 7,610.00
From the below table, answer questions 4-5

PRODUCT TOTAL REVENUE TOTAL EXPENSES PROFIT

4. Rubber Shoes 18,820.00 ____________________ 4,360.00
5. Milk 7,530.00 4,920.00 _________________

_____4. How the total expenses?

A. (P 23,180.00) C. P 23,180.00
B. (P 14,460.00) D. P 14,460.00
_____5. How much the profit?
A. P 2,610.00 C. P 4,920.00
B. P 12,450.00 D. P 7,530.00
_____6. What is the business ability to pay off current liabilities with current assets?
A. viability C. profitability
B. solvency D. liquidity

_____7. Which one measured by the long-term survival and its ability to sustain profits
over a period of time?
A. viability C. profitability
B. solvency D. liquidity

_____8. Which refers to an enterprise capacity to meet its long-term financial

commitments?
A. viability C. profitability
B. solvency D. liquidity

_____9. Which of the following is NOT viable if your business is located near the school?
A. socks C. paper clips
B. slippers D. cartolina

_____10. What are the things that the customer require when purchasing a product or
service?
A. customer complain C. customer wants
B. customer request D. customer needs

12
 Answer Key
Lesson 1
Let’s Practice Let’s Do More
ACTIVITY 1 ACTIVITY 1

Answers may vary

ACTIVITY 2

Answers may vary

1. feasibility 6.activity
2.possibility 7.lifeblood
3. usefulness 8.growth
4. effective 9.energy Let’s Sum It Up
5.capability 10. breath

ACTIVITY 2

1. √ 6. ×
2. √ 7. √
3. × 8. √
4. × 9. √
5. × 10. ×

Lesson 2
Let’s Practice Let’s Do More
ACTIVITY 1 ACTIVITY 1

1.liquidity
2. viability
3. solvency
4. profitability
5. market strategy

ACTIVITY 2
ACTIVITY 2

1. 5,400.00
2. 8,590.00
3. 3,540.00 1. Revenue-Expenses=Profit
4. 9,860.00 175,000-13,780=161,220
5. 26,826 2. Yes

13
Let’s Sum It Up

Across Down
1. overhead 2. Price
5. choice 3. Convenience
6. quality 4. Profit

Let’s Try Let’s Assess

1. C 6. D
1. A 6. B
2. D 7. A
2. D 7. D
3. C 8. B
3. C 8. C 4. C 9. B
4. C 9. D 5. A 10.D
5. A 10. A

References

Websites

“The Balance Small Business,”What does viability Means in a Business?” last Accessed October 3,
2020, https://smallbusinessify.com/what-does-viability-mean-in-business/

“Informi,”How do I calculate Profit?”, last Accessed October 3, 2020

https://informi.co.uk/finance/how-do-i-calculate-profit

“GCSE Edexel, Customer Needs, “ last Accessed October 3, 2020

https://www.bbc.co.uk/bitesize/guide/zn3847h/revision/1)

14
FEEDBACK SLIP

A. FOR THE LEARNER

Thank you very much for using this CLAS. This learner’s
material is aimed at ensuring your worthwhile learning
through the help of your family members. For feedback YES NO
purposes, kindly answer the following questions:

1. Are you happy and contented with your learning

experiences using this CLAS?

2. Were you able to follow the processes and procedures

that were indicated in the different learning activities?

3. Were you guided by anybody from your family while

using this CLAS?

4. Was there any part of this CLAS that you found difficult?
If yes, please specify what it was and why.

B. FOR THE PARENTS / GUARDIANS

Do you have any suggestions or recommendations on
how we can make improvements to this CLAS to better serve
the learners?

Yes (Please indicate what this is/these are.)

None

Contact Number: __________________________________

NAME OF SCHOOL:

Teacher’s Name and Signature:

Parent’s / Guardian’s Name and
Signature:
Date Received:

Date Returned:

15