Objective

By the end of this lesson, you will learn how to bake cookies and understand basic economic concepts related to running a small baking business.

Materials and Prep

• Ingredients for cookie baking (flour, sugar, butter, eggs, etc.)
• Baking utensils (mixing bowls, measuring cups, cookie cutters, etc.)
• Paper and pen for taking notes
• Basic understanding of addition, subtraction, and multiplication

Activities

• Baking Time: Start by baking cookies with your favorite recipe. While baking, discuss the cost of ingredients and how to calculate the total cost of making a batch of cookies.
• Pricing Game: Play a game where you set prices for your cookies and calculate potential profits based on different selling prices.
• Market Research: Research the prices of cookies in local bakeries or online to understand pricing strategies in the baking industry.

Talking Points

• "When we buy ingredients to bake cookies, we are spending money. This is called a cost. Can you think of other costs involved in baking cookies?"
• "To make a profit, we need to sell our cookies for more than it costs us to make them. This is called revenue. Can you calculate how much profit we would make if we sell each cookie for $1?"
• "In the baking business, it's important to understand your customers and competitors. What do you think are some factors that can influence the price of cookies?"