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Lesson 1

1. Lesson 1

1.4. Explore 3

Mathematics 30-3 Module 2

Module 2: Number

 

While playing Hot Chocolate Express, you saw that many factors can influence how well a business does. Some of these factors, such as the hot chocolate recipe, are in your control. Some of the factors, like the rent, are not. A real business has many more factors to account for than the simulated Hot Chocolate Express.



textbook

Read “Discuss the Ideas, Profitable Business Decisions” on page 290 of your textbook. In particular, pay attention to the variety of factors that can affect the profitability of a business. If you were creating the business you described in Try This 1, what factors would you have to consider?



Read “Example 2” on pages 290 and 291 of your textbook for a detailed example of analyzing day-to-day expenses and revenue. Consider the calculations that Sylvia must use in her analysis to figure out strategies for breaking even or making a profit. What factors may affect her profitability?

 

Self-Check 2


textbook

Complete “Build Your Skills” questions 1 and 5 on pages 293 and 294 of your textbook. Answer

This is a picture of a planning document identifying a strategy, including customers, company, competitors, etc.

iStockphoto/Thinkstock

Up until now, you’ve been analyzing the costs associated with running a business. However, before a business opens the owners must decide if the business is feasible, that is, if it has a chance of surviving. Once the owners are confident it will be profitable, supplies, such as tools, must be purchased.

 

Share 3

 

With a partner or in a group, share the type of business you identified in Try This 1.

  1. Describe why you think your business will be profitable—accounting for competitors, customers, weather, and so on.
  2. List what you think your start-up costs will be.

course folder If required, place a summary of your discussion in your course folder.

Start-up costs are items you need to purchase before your business can open, such as equipment, an operating license, and a vehicle.
Though some expenses are only paid annually, they should be budgeted for monthly so you have the money set aside when it is time to pay the bill. If you pay something quarterly, that means you pay it four times per year, or every three months.