Lesson 1

Read “Explore the Math” on page 287 of your textbook. In particular, pay attention to the definitions in the right margin. Notice that the statement of revenue and expense on page 288 contains similar information to the statement of revenue and expense for Ernie’s Landscaping. The difference is that the information is arranged differently.

 

Read “Example 1” on pages 288 and 289 for an example of classifying revenue and expenses.

 

Self-Check 1

1. Complete Business Terms Matching Activity.
   
   
    
   

2. Complete “Build Your Skills” questions 2 and 3 on pages 293 and 294 of your textbook. Answer

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Business owners are responsible for setting prices for their products and services. They need to strike a balance between pricing it high enough to make a reasonable profit, and low enough that customers will want to buy it.

 

There are a variety of games on the Internet that simulate running a simple business. One example is Hot Chocolate Express, which you will play in Try This 2.

 

Try This 2

 

Open the Hot Chocolate Express game. The goal is to accumulate as much profit as possible. Once you have completed the game, respond to the questions that follow.

 

1. How did you maximize your profit?
2. Describe some factors that influenced whether people would buy your hot chocolate.

Save your responses in your course folder.

 

Share 2

 

With a partner or in a group, discuss your strategies for maximizing your profits in the Hot Chocolate Express simulation. How were your strategies similar? How were they different? Why are some strategies more profitable than others?