Lesson Overview

Duration: 40 Minutes

Target Age: 13 years old (Grade 7/8)

Goal: Students will understand how to calculate profit and loss and apply these concepts to a real-world business scenario to determine financial success.

Materials Needed

• Calculator
• Notebook and pen/pencil
• "The Entrepreneur Challenge" Worksheet (or blank paper)
• Access to a computer/phone for quick price research (optional)

Learning Objectives

By the end of this lesson, the student will be able to:

• Define Cost Price (CP) and Selling Price (SP).
• Calculate Profit and Loss using standard formulas.
• Determine Profit/Loss Percentage to compare business efficiency.
• Apply mathematical thinking to a real-life "side hustle" scenario.

1. Introduction: The Hook (5 Minutes)

The Scenario: Imagine you just bought a rare pair of vintage sneakers at a garage sale for $40. You spend $10 on a cleaning kit to make them look brand new. You then list them online and sell them for $80. After paying $5 for shipping, did you actually make $40? Why or why not?

Discussion: Most people forget "hidden costs." Today, we are moving beyond just adding and subtracting; we are learning the math that determines if a business thrives or dives.

Key Terms:

• Cost Price (CP): Every penny you spend to get the product ready (Purchase price + repairs + shipping).
• Selling Price (SP): The final amount of money you receive from the buyer.

2. Body: I Do, We Do, You Do (25 Minutes)

I Do: The Formulas (7 Minutes)

The instructor demonstrates the core logic. To know if you've been successful, you need these two basic "math engines":

1. Profit: If SP is greater than CP (SP - CP = Profit).
2. Loss: If CP is greater than SP (CP - SP = Loss).

Example: You buy a broken iPhone for $50. You spend $30 on a new screen. Your Total Cost Price is $80. You sell it for $120.
Calculation: $120 (SP) - $80 (CP) = $40 Profit.

We Do: The "Pop-Up Cafe" Simulation (8 Minutes)

Let's work through a scenario together. We are opening a lemonade and snack stand for a local community event.

• Expenses (CP): Lemons/Sugar ($15), Cups ($5), Box of Cookies ($10), Poster board for sign ($5). Total CP = ?
• Revenue (SP): We sold 30 cups of lemonade at $2 each and 10 cookies at $1 each. Total SP = ?

Task: Calculate if we made a profit or loss.
(Answer for Instructor: CP = $35, SP = $70. Profit = $35).

The "Next Level" Step: How do we know if $35 is good? We calculate the Profit Percentage:
(Profit / Cost Price) x 100
In this case: (35 / 35) x 100 = 100% profit! You doubled your money.

You Do: The Entrepreneur Challenge (10 Minutes)

The Task: Pick a "Side Hustle" you would actually want to do (e.g., Gaming channel, Custom T-shirts, Dog walking, Reselling tech).

1. List your Costs: Write down at least 3 things you have to pay for to get started.
2. Set your Price: How much will you charge your customers?
3. The Math: Assume you sell 10 units/hours of service. Calculate your Total CP, Total SP, and your Profit or Loss.
4. Analysis: Calculate your Profit Percentage. If it’s below 20%, brainstorm one way to reduce costs or increase your price.

3. Conclusion: Recap & Reflection (5 Minutes)

Recap:

• Profit isn't just the money you take in; it’s what’s left over after every expense is paid.
• Loss happens when your expenses outrun your sales.
• Math helps us make decisions: "Is this business worth my time?"

Exit Question: If a company has a massive "Clearance Sale" at 50% off, is it possible they are still making a profit? How?

Assessment & Success Criteria

Success Criteria: The student can successfully identify all hidden costs in a scenario and correctly apply the Profit/Loss formula.

• Formative Assessment: Observation of the "We Do" calculation accuracy.
• Summative Assessment: Review of the "Entrepreneur Challenge" worksheet. Ensure the student correctly calculated the final Profit/Loss and understood the percentage.

Differentiation Options

• Scaffolding (Struggling Learners): Provide a pre-filled list of costs for the "You Do" section so the student can focus on the subtraction and addition rather than brainstorming. Use whole numbers (no decimals).
• Extension (Advanced Learners): Introduce Break-Even Point. Ask: "How many units do you need to sell exactly to have $0 profit and $0 loss?" Or, introduce "Sales Tax" (e.g., they must pay 5% of their SP back to the government).