Profit Mystery in Seaburn QS:Layout 1 · Magnum classics (ice cream) cost £20.80 for 20. I buy one...

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SAM

PLE

Resources for CoursesProfit Mystery in Seaburn

Teacher InstructionsProfit mystery is a card based activity that can be used to either introduce the concept of profit and loss or consolidate the understanding of profit and loss aftersome initial teacher input. The activity is conducted in small groups.

Students need to piece together the mystery cards and use the information on themto calculate the profit or loss of running a seaside snacks stall. There are two ways inwhich this activity can be used:

A All the stock purchased for the stall is sold during the day’s trading

B There is some unsold stock. This is a more challenging activity as students needto calculate the value of unsold stock and adjust the cost of sales accordingly.

Resources Needed

• One set of mystery cards per group (note that there are 6 mystery cards whichare a different colour and used to support students whilst constructing theirprofit and loss accounts)

• One student sheet (A or B depending on which activity is chosen) per student

• PowerPoint introductory presentation

Teaching tips/ suggestions

1 A common error that students make is not incorporating the increased price ofthe replenishment stock from 60p to 65p. It is down to the teacher whether or not they want to remind students of this before they complete their student sheet

2 Depending on the level of students/ specification a discussion could take placearound the concept/ value of test marketing

SAM

PLE

For this strategy 3 cards need to be removedfrom the set.These are:

1 Unsold products do not count as cost of sales

2 When I get home I do a stock check. I have:10 500ml bottles of Fanta4 bags of crisps2 bottles of water

3 At 5 o’ clock I close the kiosk and put all my remaining stock in the car and drive home

1 Split the class into small groups (3 students is ideal)

2 Show the introductory PowerPoint which gives the students some background information to the activity

3 Give each group a set of the profit mystery cards minus the 3 cards detailedabove

4 Give each student a copy of ‘Student sheet (A)

5 Explain to the students that they need to piece together the day’s trading usingthe information on the cards to complete their sheet and work out whether thestall made a profit or a loss

6 A teacher’s answer sheet (Teachers sheet (A) All stock sold) has been providedwith the complete solution

SAM

PLE

For this strategy 1 card needs to be removedfrom the set.This card is:

1 An amazing days trading! I sold all of my stock!!

1 Split the class into small groups (3 students is ideal)

2 Show the introductory PowerPoint which gives the students some background information to the activity

3 Give each group a set of the profit mystery cards minus the card detailed above

4 Give each student a copy of ‘Student sheet (B)

5 Explain to the students that they need to piece together the day’s trading usingthe information on the cards to complete their sheet and work out whether thestall made a profit or a loss

6 Students may need extra support when calculating cost of sales to take into account the unsold stock. A common error students make is to use the sellingprice rather than the unit cost when making this adjustment

7 A teacher’s answer sheet (Teachers sheet (B) Unsold stock) has been providedwith the complete solutionSA

MPL

E

I leave the house to drive to the cash and carry, stopping at the petrol station on the way. I put £10 petrol in my car, just enough to get me to the cash and carry, onto the stall and then back home again.

Profit Mystery in Seaburn

The council advise me that public liability insurance is a legal requirement for running a stall.


An internet search reveals that the cheapest public liability insurance is £40 for the one day’s trading.


At the cash and carry I go straight to the soft drinks section. I have a look around and decide that I need a mixture of cans and 500ml bottles. A case of 30 cans of coca cola costs £6. A case of diet coke costs the same. I decide to buy 2 cases of each.


At the cash and carry I also decide to buy 24, 500ml bottles of Fanta which also cost £10.80 for 24.


500ml bottles of coca cola and diet coke cost £10.80 for 24. I decide to buy a pack of each.


On my way to the checkout I notice that there is a special offer on Walkers crisps. A box of 48 (mixed flavour) crisps is only £20.64. I decide to buy one box.


I buy two cases of fruit shoots (one case of orange and one of blackcurrant). A case has 24 bottles and costs £9.84.


I decide to price the cans of coke and diet coke at 60p each.


I am going to sell the 500ml bottles of coke, diet coke and Fanta for £1.10.


SAM

PLE

My crisps will retail at 60p a bag.


After 4 hours I have sold out of cans of coke and diet coke.


I buy 24 bottles of Volvic water at a cost of £6.96.


I am going to sell Volvic for 50p a bottle.


I ring my brother and ask him to buy me one more case of coca cola and one more case of diet coke (cans) at the cash and carry.


My brother arrives with my extra stock of coca cola and diet coke. I decide to increase the price to 65p due to the higher demand.


Leaflets advertising the stall cost £20 for 100.


I give my brother £10 for his petrol costs.


At 5 o’ clock I close the kiosk and put all my remaining stock in the car and drive home.


When I get home I do a stock check. I have:10 500ml bottles of Fanta4 bags of crisps2 bottles of water


SAM

PLE

The stall is fitted with a fridge and freezer which incurs an additional £5 electricity charge for the day.


Magnum classics (ice cream) cost £20.80 for 20. I buy one box and will sell each Magnum for £1.60.


An amazing days trading! I sold all of my stock!!


A bottle of fruit shoot will sell for 60p.


Cost of renting the kiosk for the day is £25.

Profit Mystery in Seaburn Profit Mystery in Seaburn



SAM

PLE

Sales revenue = price x number of products sold.


Gross profit = sales revenue – cost of sales.


Net profit = gross profit – overheads/ other costs.


Cost of sales = the cost of buying the products which were sold.


Unsold products do not count as cost of sales.


Unit cost is the cost of each individual item (i.e. the cost of one can of diet coke or one bottle of water).




SAM

PLE

Stu

dent

She

et (A

)All

sto

ck

Sold

Pro

duc

ts P

urch

ased

Am

ount

(tot

al u

nits

)To

tal C

osts

Uni

t C

ost

Sel

ling

Pric

e R

even

ue

Tota

l

Exp

ense

s

Tota

l

Pro

fit/

Loss

Acc

oun

t

Tota

l Rev

enue

Cos

t of

Sal

es

Gro

ss P

rofit

Ove

rhea

ds/

Exp

ense

s

Net

Pro

fit

SAM

PLE

Teac

hers

She

et (A

)All

sto

ck

Sold

Pro

duc

ts P

urch

ased

Am

ount

(tot

al u

nits

)To

tal C

osts

Uni

t C

ost

Sel

ling

Pric

e R

even

ue

Coc

a C

ola

(can

s)

60£1

2£0

.20

£0.6

0£3

6.00

Die

t C

oke

(can

s)60

£1

2£0

.20

£0.6

0£3

6.00

Coc

a C

ola

(rep

leni

shm

ent

can)

30£6

£0.2

0£0

.65

£19.

50D

iet

Cok

e (re

ple

nish

men

t ca

ns)

30

£6£0

.20

£0.6

5£1

9.50

Coc

a C

ola

(500

ml b

ottle

s)24

£1

0.80

£0.4

5£1

.10

£26.

40D

iet

Cok

e (5

00m

l bot

tles)

24

£10.

80£0

.45

£1.1

0£2

6.40

Fant

a (5

00m

l bot

tles)

24

£10.

80£0

.45

£1.1

0£2

6.40

Wal

kers

Cris

ps

48

£20.

64£0

.43

£0.6

0£2

8.80

Frui

t S

hoot

s (o

rang

e)24

£9

.84

£0.4

1£0

.60

£14.

40Fr

uit

Sho

ots

(bla

ckcu

rren

t)24

£9

.84

£0.4

1£0

.60

£14.

40M

agnu

ms

20

£20.

80£1

.04

£1.6

0£3

2.00

Volv

ic24

£6

.96

£0.2

9£0

.50

£12.

00

Tota

l£1

36.4

8£2

91.8

0

Exp

ense

s

Insu

ranc

e£4

0.00

Pet

rol

£20.

00K

iosk

Hire

£25.

00E

lect

ricity

£5.0

0Le

afle

ts£2

0.00

Tota

l£1

10.0

0

Pro

fit/

Loss

Acc

oun

t

Tota

l Rev

enue

£291

.80

Cos

t of

Sal

es£1

36.4

8

Gro

ss P

rofit

£155

.32

Ove

rhea

ds/

Exp

ense

s£1

10.0

0

Net

Pro

fit£4

5.32

SAM

PLE

Stu

dent

She

et (B

)Uns

old

Sto

ck

Pro

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ts P

urch

ased

Am

ount

(tot

al u

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)To

tal C

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Uni

t C

ost

Sel

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Pric

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Uns

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Valu

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Uns

old

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Tota

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Exp

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s

Insu

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lK

iosk

Hire

Ele

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Pro

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Acc

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Tota

l Rev

enue

Cos

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Sal

es

Gro

ss P

rofit

Ove

rhea

ds/

Exp

ense

s

Net

Pro

fit

SAM

PLE

Teac

hers

She

et (B

)Uns

old

Sto

ck

Pro

duc

ts P

urch

ased

Am

ount

(tot

al u

nits

)To

tal C

osts

Uni

t C

ost

Sel

ling

Pric

e R

even

ue

Uns

old

Sto

ck

Valu

e of

Uns

old

Sto

ck

Coc

a C

ola

(can

s)

60£1

2£0

.20

£0.6

0£3

6.00

Die

t C

oke

(can

s)60

£1

2£0

.20

£0.6

0£3

6.00

Coc

a C

ola

(rep

leni

shm

ent

can)

30£6

£0.2

0£0

.65

£19.

50D

iet

Cok

e (re

ple

nish

men

t ca

ns)

30

£6£0

.20

£0.6

5£1

9.50

Coc

a C

ola

(500

ml b

ottle

s)24

£1

0.80

£0.4

5£1

.10

£26.

40D

iet

Cok

e (5

00m

l bot

tles)

24

£10.

80£0

.45

£1.1

0£2

6.40

Fant

a (5

00m

l bot

tles)

24

£10.

80£0

.45

£1.1

0£1

5.40

10£4

.50

Wal

kers

Cris

ps

48

£20.

64£0

.43

£0.6

0£2

6.40

4£1

.72

Frui

t S

hoot

s (o

rang

e)24

£9

.84

£0.4

1£0

.60

£14.

00Fr

uit

Sho

ots

(bla

ckcu

rren

t)24

£9

.84

£0.4

1£0

.60

£14.

40M

agnu

ms

20

£20.

80£1

.04

£1.6

0£3

2.00

Volv

ic24

£6

.96

£0.2

9£0

.50

£11.

002

£0.5

8

Tota

l£1

36.4

8£2

77.4

0£6

.80

Exp

ense

s

Insu

ranc

e£4

0.00

Pet

rol

£20.

00K

iosk

Hire

£25.

00E

lect

ricity

£5.0

0Le

afle

ts£2

0.00

Tota

l£1

10.0

0

Pro

fit/

Loss

Acc

oun

t

Tota

l Rev

enue

£277

.40

Cos

t of

Sal

es£1

29.6

8

Gro

ss P

rofit

£147

.72

Ove

rhea

ds/

Exp

ense

s£1

10.0

0

Net

Pro

fit£3

7.72

SAM

PLE

Profit Mystery in Seaburn QS:Layout 1 · Magnum classics (ice cream) cost £20.80 for 20. I buy one...

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Transcript of Profit Mystery in Seaburn QS:Layout 1 · Magnum classics (ice cream) cost £20.80 for 20. I buy one...