Profit Activity


GOAL:  PROFIT!

Two ways that businesses can increase their profit:
1.  Increase revenue
2.  Reduce costs

TIPS:
*Tallest tower with the least cost is your goal.

REVENUE
*A tower that is 8 inches tall will receive $12,000
*If the tower can stand ALONE for 3 seconds you will receive an "integrity bonus" of $2,000
*If the tower can hold a piece of paper on top for at least three seconds you will receive a "strength bonus of $3,000


COSTS:
Fixed costs are the "white sheet" of paper, labor, property tax, insurance, labor (5 workers $20 each-contract), opportunity cost. 

Variable costs are toothpicks, marshmallows, consulting, unused material, missing marshmallow, unused broken toothpick. 

PLAN: 
Discuss the business plan in your group. 
Create a blueprint and estimate costs and revenue.
Specialize the labor--accountant, builder(s), quality control, supplier, etc 

GAME ON:
You can buy raw materials from Duffka THREE times.


EXAMPLES: 



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*Adopted from Jacob Clifford.

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SHEET FOR YOUR CALCULATIONS ON GOOGLE SHEETS

Marshmallow Towers-Profitability







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