Life Skills Arcade Middle school Family and Consumer Sciences, grades 6 to 8

Handout 7.6

Handout 7.6: Four Questions and Profit Example

Unit
Unit 7: Launch: Career Readiness and FACS Shark Tank
Handout
7.6

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Name: ____________________________ Date: ______________ Period: ______

Unit 7, Lesson 7.6. Calculators allowed and encouraged, all period, for everybody.

Part 1: The four questions every business has to answer

#The questionWhat it means
1What ______________?Something that is wrong, hard, or annoying for a real person.
2Who ______________?A specific kind of person, not "everybody."
3What do you ______________?The thing you make (a product) or the work you do (a service).
4What 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. Five rows in five minutes. One sentence each. Move fast.

BusinessWhat 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

The push question, for every row: would somebody pay to make that problem go away, and about how much?

Part 3: Revenue, cost, and profit. One clean example.

The class T-shirt.

One shirt

LineAmount
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

LineMathAmount
Revenue (money in)40 shirts times $12.00$________
Cost (money out)40 shirts times $6.50$________
Profitrevenue minus cost$________

Write the formula from memory:

______________ minus ______________ equals ______________

Now it breaks. You ordered 60 shirts and you only sold 40.

LineMathAmount
Revenue (you only sold 40)40 times $12.00$________
Cost (you paid for 60)60 times $6.50$________
Profitrevenue minus cost$________

What happened? Write one sentence.



Hold up your answer for the 60-shirt profit on the count of three.

Part 4: Business or hobby?

A hobby costs you money and you do it because you like it. A business brings in more than it costs, and 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. Then write your decision with a reason that uses one of the four questions and at least one number.

#The situationBusiness or hobby?Why? Use a question number and a number.
aA student bakes cookies for their family every Sunday.
bA student bakes cookies and sells them at a school event for $1.00 each. They cost 35 cents to make.
cA 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 have seen this week that somebody would pay to have solved, and who would pay:

Problem: ____________________________________________________________

Who would pay: ______________________________________________________

2. The profit formula, from memory:


Word bank

EnglishTurkishPortugueseSpanish
entrepreneurgirişimciempreendedoremprendedor
businessişletme (iş)negócionegocio
problemsorun (problem)problemaproblema
customermüştericlientecliente
productürünprodutoproducto
servicehizmetserviçoservicio
revenuegelir (satış geliri)receitaingresos
costmaliyetcustocosto
profitkârlucroganancia (beneficio)

Sentence frames: "The problem is ___. The person who has it is ___." / "Revenue minus cost equals profit."