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 5 seconds you will receive an "integrity bonus" of $2,000

*If the tower can hold a piece of paper on top for at least five 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:

*Adopted from Jacob Clifford.

MAKE A COPY OF THIS SPREAD

SHEET FOR YOUR CALCULATIONS ON GOOGLE SHEETS

SPREADSHEET LINK