Name: ____________________________ Date: ______________ Period: ______
Unit 7, Lesson 7.6. Use a calculator. Everybody may, all period.
Part 1: The four questions every business has to answer
| # | The question | What it means |
|---|---|---|
| 1 | What ______________? | Something that is wrong, hard, or annoying for a real person. |
| 2 | Who ______________? | A specific kind of person, not "everybody." |
| 3 | What do you ______________? | The thing you make (a product) or the work you do (a service). |
| 4 | What does it ______________, and what do you ______________? | Cost is what you spend. Price is what you charge. |
Product or service? Write one of each from your own work this year.
A product I made this year: ________________________________________
A service I could do for somebody: __________________________________
Customer means the person who ______________. It is not always the person who ______________.
Part 2: The problem behind five real businesses
Work in your team. Fill in five rows in five minutes. Write one sentence in each box. Move fast.
| Business | What problem does it solve? | Who has that problem? |
|---|---|---|
| A barber shop | ||
| A phone repair counter | ||
| A school bus company | ||
| A bakery | ||
| A lawn mowing crew |
Ask this for every row: (a) Would somebody pay to make that problem go away? (b) About how much?
Part 3: Revenue, cost, and profit. One clean example.
The class T-shirt.
One shirt
| Line | Amount |
|---|---|
| Blank shirt | $4.00 |
| Printing | $2.50 |
| What it costs to make ONE shirt | $________ |
| What you charge for one shirt | $12.00 |
| Profit on ONE shirt ($12.00 minus your cost) | $________ |
Forty shirts, and you sell all forty
| Line | Math | Amount |
|---|---|---|
| Revenue (money in) | 40 shirts times $12.00 | $________ |
| Cost (money out) | 40 shirts times $6.50 | $________ |
| Profit | revenue minus cost | $________ |
Write the formula from memory:
______________ minus ______________ equals ______________
Now it goes wrong. You ordered 60 shirts and you only sold 40.
| Line | Math | Amount |
|---|---|---|
| Revenue (you only sold 40) | 40 times $12.00 | $________ |
| Cost (you paid for 60) | 60 times $6.50 | $________ |
| Profit | revenue minus cost | $________ |
What happened? Write one sentence.
Line 1: ____________________________________________________________________
Line 2: ____________________________________________________________________
Hold up your answer for the 60-shirt profit on the count of three.
Part 4: Business or hobby?
A hobby costs you money. You do it because you like it. A business brings in more money than it costs. Somebody else decides whether it is worth paying for.
A hobby is not worse than a business. Most of what makes life good is a hobby. This is a question about money, not about worth.
Vote on each one. Then write your decision. Your reason must use one of the four questions and at least one number.
| # | The situation | Business or hobby? | Why? Use a question number (1 to 4) and at least one number from the situation. |
|---|---|---|---|
| a | A student bakes cookies for their family every Sunday. | ||
| b | A student bakes cookies and sells them at a school event for $1.00 each. They cost 35 cents to make. | ||
| c | A student makes bracelets, gives them away, and spends $30.00 a month on string. |
For situation b: if they sell 40 cookies, what is the profit?
Revenue: 40 times $1.00 = $________
Cost: 40 times $0.35 = $________
Profit: $________
Exit card
Fold over and hand in.
Name: ____________________
1. One real problem you saw this week that somebody would pay to have solved. Then who would pay:
Problem: ____________________________________________________________
Who would pay: ______________________________________________________
2. The profit formula, from memory:
Line 1: ____________________________________________________________________
Word bank
| English | Spanish |
|---|---|
| entrepreneur | emprendedor |
| business | negocio |
| problem | problema |
| customer | cliente |
| product | producto |
| service | servicio |
| revenue | ingresos |
| cost | costo |
| profit | ganancia (beneficio) |
Sentence frames: "The problem is ___. The person who has it is ___." / "Revenue minus cost equals profit."
The teacher key for this handout is behind the teacher sign in. Teacher key