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In this lesson we will learn some new words given below.
Product: Product is a good or service.
Price: The money value of good or Service.
Profit: Profit is the entrepreneur’s earning after paying for all expenses.
Profit = Sales - Costs
Decision making: To make a decision means to make a careful choice from among options available.
Appu Ice cream needs to figure out how many Kulfis it need to sell per day at Rs.2.00 each to pay for its resources and still make small profit of 2 Rs. The human resources expenses is Rs.20.00 per day for it a Human resource Ganesh, and its capital resource expenses for sticks, machine etc. is Rs.20.00 per day .
Daily Financial Report
Income: Sales of Kulfi (Rs.2.00 each * 21 Kulfis) = Rs 42.00
Expenses: Human Resources (Ganesh) Rs 20.00 + Capital Resources Rs 20.00 = Rs 40.00
Profit (Income-expenses): Rs 2.00
EXERCISE
1. Its summer holiday time and Appu Ice cream has a big order. Appu Ice cream wants to hire Ganesh's friend Rizwan to help
at Rs.20.00 per day.He will also use another Rs.20.00 in capital resources.How many kulfis will Appu Ice cream need to sell
per day to make profit ?
2. Appu Ice cream used to get its sticks from the local market. But the kind it wants now must be sent by truck from another
region of the Indian state. This cost add extra Rs.4.00 a day, which means the cost of capital resources increases to Rs. 24.00. How many Kulfies will Appu Ice cream need to sell per day to equal its daily expenses ?
Exercise 1
Income
Sales of Kulfi (Rs.2.00 each * 41 Kulfis) = Rs _________
Expenses
Human Resources (Ganesh+Rizwan) Rs__________ + Capital Resources Rs _________ = Rs __________
Profit (Income-expenses) Rs __________
Exercise 2
Income
Sales of Kulfi (Rs.2.00 each * 41 Kulfis) = Rs _______
Expenses
Human Resources (Ganesh+Rizwan) Rs __________ + Capital Resources Rs_________= Rs__________
Profit (Income-expenses) Rs_________
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