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# Muffin bakery: price setting

TLF ID L3238

Run a shop which bakes muffins. Investigate the production costs. Look at how profit is 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 first in a series of three objects that progressively increase in difficulty.

Tags: monday

#### Educational details

Key learning objectives
• Students explore how retail profitability is related to customer demand and unit 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 how profit is calculated.
• Demonstrates the relationship between price and demand.
• Provides tables of sales results from a simulated trading period.
• 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

7; 8

TopicsLoss; Profit
Learning area
• mathematics
Strand
• Mathematics/Number and algebra
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: www.esa.edu.au
Access profile
• Colour independence
• Device independence
• Hearing independence
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: XP - maximum version: 7
Rights
• © Education Services Australia Ltd, 2013, except where indicated under Acknowledgements