Vocabulary
What you need to create and sell your product
Supplies
Earnings-Expenses=________
Profit
Cost of supplies- $5
Income- $10
What is the profit?
$5
Which of the following situations would it be useful to understand profit?
A. Running a race
B. Starting a car wash business
C. Learning to drive
D. Writing an essay
B. Starting a car wash buisiness
Sally bought $5 worth of lemons and sugar. She then ran a lemonade stand and made $50. What was her profit?
$45
50-5=$45
The money you get from business activities
Income
________-Expenses= Profit
Earnings
Cost of supplies- $20
Income- $63
What is the profit
$43
Why would you need to understand profit if you own a lawn mowing buisness?
Answers may vary.
You need to understand profit because you want to make sure you are making money. If you have to buy a lawn mower, and only have two yards to mow you would likely lose money.
Mark sold hot chocolate to his neighbors. The cost of preparing the hot chocolate was $11.25. The money he received from the sale of hot chocolate was $19.00. What was Mark's profit?
$7.75
What you have to pay someone else when running a buisiness
Expenses
Earnings- _________= Profit
Expenses
Expenses- $63.13
Income- $144.76
What is the profit?
$81.63
What are some examples of expenses you might have if you ran a grocery store?
The food
Employees
Shopping carts
(there can be more answers than just these three)
Andy made a homemade sled to sell. He made a list about what he did.
Cost of wood: $6.52
Cost of paints: $9.09
Cost of other supplies: $3.13
Selling price: $45
What was Andy's profit?
$26.26
The amount of money you have left after paying your expenses
Profit
_________-________ = Profit
Earnings, Expenses
Supplies- $30
Income- $72.49
Taxes- $7.14
What was the net profit?
$35.35
Answers will vary
Yes because in order to create the invention you will have to buy the supplies. If you want to sell your invention, you will have to also factor in how much to sell it for.
Jenny made hair bows at a local store. She made a list of what she did.
Price paid for ribbons: $7.24
Cost of other supplies: $6.49
Jenny collected $29.00 from her customers
What was Jenny's profit?
$15.27
The money you have left after paying for all your expenses and taxes
Net Profit
Earnings is also called
What is Income?
Mia sold cookies for her Girl Scouts troop. Each box of cookies that she sold cost $3.00 to make. She sold each box for $7.00. If Mia sold 12 boxes of cookies what was her total profit?
$48