Our Chocolate Business

How the third grade earned big bucks to help people.

First:

That was nice, but it was a loan. We have to pay the school back. This money was an expense.

If we’d borrowed from a bank the expense would be even greater. Banks charge interest.

We needed money.Casady loaned us the money we needed to buy the chocolate.

Second:• 9 cases of Crunch!---------------------$315.00• 18 cases of Milk!-----------------------$630.00• 7 cases of Dark!------------------------$240.00

We’re not finished yet!• Shipping----------------------------------$52.95

$1,242.95

We ordered Chocolate!

Oh no!

$1,242.95was our

expense!

If we didn’t sell $1,242.95,

then we didn’t make any money!

• We needed a price that people would pay, but would also give us a profit.

• We ordered 1,074 chocolate bars!

• Profit is the amount of money you make minus expenses.

• Would we make a profit if we sold each bar for $1.00?

Third: We decided on a price!

Remember: Our expense is $1,242.95

If we sold 1,074 bars for $1.16 that would equal our expense--$1,242.95

$1,242.95 divided by 1,074 equals $1.16

The price we picked was $2.00 So, every time we sold a chocolate bar, we made 84 cents.

$2.00 minus $1.16 equals 84 cents.

So, in order to break even, we would need to sell each bar for $1.16

In other words: 1,074 times $1.16 equals $1,242.95

Fourth:We advertized our product!

$2.00 per bar!

Fifth: We sold our chocolate!

Finally!

So, how’d we do?

Are you ready to decide what to do with all that money?

Let’s count those votes!