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Learning objects Muffin bakery: volume discounting

TLF ID L3239

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. Investigate the effects of buying ingredients in bulk on unit costs and profit. Look closely at sales figures and make adjustments. This learning object is the second 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 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.
  • Provides tables of sales results from a simulated trading period.
  • Encourages students to explore volume discounting to increase profit.
  • 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


TopicsLoss; Profit
Learning area
  • mathematics
  • Mathematics/Number and algebra
    • 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

    • 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:
    Access profile
    • Colour independence
    • Device independence
    • Hearing independence
    • Generic
    Learning resource type
    • Interactive Resource
    • 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
    • © Education Services Australia Ltd, 2013, except where indicated under Acknowledgements.