Description of Lesson:

• Launch [5 mins] -
  • Explore how retail profitability is related to customer demand and unit costs [outline Key Vocabulary students are required to understand prior to the lesson]. Ensure that students recognise that profit is made when the cost price of an item is less than the selling price.
• Explore
  • Activity 1 [35 mins] - Students work through digiactivity 'Muffin Bakery' (follow link for digital access). Their aim is to maximise the profit of their bakery, considering the cost of making all the muffins each day and how much money they receive from selling them.
  • Students must also keep in mind that the number of muffins they sell is dependent on the price they charge, recording their choices in a shared Google Sheets spreadsheet. Aim of the activity is for students to consider the original cost of a product, decide on a profit percentage, and sell the product at an inflated price. A backwards calculation can then be practiced on the whiteboard.
• Summarise [5 mins] - Consolidation of knowledge: Students to justify their bakery choices. What factors did students have to consider? How can you calculate the cost price of a product when the profit/loss margin and selling price is known?