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Learning objects Muffin bakery: price and volume

TLF ID L3237

Run a shop which bakes muffins. Investigate the fixed costs and variable costs involved in production. Look at how gross profit and net profit are calculated. Examine the effects of unsold stock on profit. Maximise profit by working out the best combination of production volume and price. Look closely at sales figures and make adjustments. This learning object is the last in a series of three objects that progressively increase in difficulty.



Educational details

Key learning objectives
  • Students explore how retail profitability is related to customer demand and unit costs.
  • Students distinguish between fixed and variable costs.
  • Students analyse sales results and adjust production volumes and prices accordingly.
  • Students test business ideas and respond to market feedback.
Educational value
  • Highlights the significance of unit costs and price elasticity when determining production volume and retail prices.
  • Introduces fixed and variable costs.
  • Introduces gross and net profit.
  • Provides tables of sales results from a simulated trading period.
  • Encourages students to examine business outcomes and adapt business ideas.
  • Task design supports repeated testing of ideas and an iterative approach to business modelling.
  • Provides an option to print a worksheet that captures the student's profit and loss results for a week's trading.
Year level

9; 10

Learning area
  • studies of society and environment
Strand
  • Studies of society and environment/Resources
Concept
  • Studies of society and environment/Commerce
  • Studies of society and environment/Business
  • Studies of society and environment/Consumer economics
  • Studies of society and environment/Economics
  • Studies of society and environment/Enterprise
  • Studies of society and environment/Manufacturing processes
Skill
  • Analysis;
  • Application;
  • Comprehension;
  • Knowledge
Student activity
  • Interactives;
  • Experiment;
  • Analysis;
  • Modelling;
  • Data manipulation and interpretation
Learning design
  • Experiential learning;
  • Independent learning;
  • Problem solving;
  • Visual learning

Other details

Contributors
  • Script writer
  • Name: Colin Bell
  • Organisation: Bell Solutions
  • Address: Wananup WA 6210 Australia
  • Subject matter expert
  • Name: Colin Bell
  • Organisation: Bell Solutions
  • Address: Wananup WA 6210 Australia
  • Script writer
  • Technical implementer
  • Publisher
  • Date of contribution: 20 Sep 2013
  • Organisation: Education Services Australia
  • Address: Melbourne VIC 3000 Australia
  • URL: http://www.esa.edu.au/
Access profile
  • Colour independence
  • Device independence
  • Hearing independence
  • Generic
Learning resource type
  • Interactive Resource
Browsers
  • Microsoft Internet Explorer - minimum version: 8.0 (MS-Windows) - maximum version: 9.0 (MS-Windows)
  • Firefox - minimum version: (MS-Windows)
  • Safari - minimum version: 5.1 (MacOS)
Operating systems
  • MacOS - minimum version: 10.6
  • MS-Windows - minimum version: x - maximum version: 7
Rights
  • © Education Services Australia Ltd, 2013, except where indicated under Acknowledgements.