Unit Economics: Does Each Sale Make Money? · seed 1 · A4, ink-friendly. The answer key prints on its own page for grown-ups.

Check each sale earns its keep

Life Skills · Entrepreneurship · ages 16-18
Name ______________________   Date ____________

  1. A notebook sells for £16. Its variable cost is £9. What is its contribution per sale?

    • £25 per notebook
    • £7 per notebook
    • £9 per notebook

  2. A stand pays £40 weekly rent regardless of sales and uses £3 of materials per sale. Which is a variable cost?

    • The £3 of materials used per sale
    • The £40 rent paid regardless of sales
    • Both payments rise with every sale

  3. A shop's agreed monthly rent stays £300 for sales between 0 and 200 units. Within that range, its total monthly rent is a fixed cost.

    Circle one:   True   False

  4. Monthly fixed costs are £1,200 and contribution is £12 per sale. These cover all operating costs. Price and costs stay unchanged within capacity. Ignoring tax and financing, how many monthly sales break even?

    • 1,212 sales
    • 100 sales
    • 12 sales

  5. A campaign spends £360 to gain 24 customers. Each customer's first order contributes £12 before acquisition spending. What remains per customer after subtracting average acquisition cost?

    • A £12 surplus per customer
    • A £27 surplus per customer
    • A £3 shortfall per customer

  6. Price stays £8 and variable cost stays £10 per sale. Sales rise from 40 to 80, with fixed costs unchanged. What happens to the loss from sales before fixed costs?

    • It rises from £80 to £160
    • It falls from £80 to £40
    • It stays at £80 despite growth

  7. Matched weekly price tests sell 50 units at £24 or 30 units at £27. Variable cost is £18 per unit; fixed costs are unchanged. Which gives more total contribution in this model?

    • £24: total contribution is £300
    • £27: total contribution is £810
    • Both: total contribution is £300

  8. Monthly fixed costs are £900 and contribution stays £5 per sale. Under every option, buyers want 100 units per month and the business can supply all 100. All operating costs are counted. Which fixed-cost change makes operating break-even reachable?

    • Raise fixed costs to £1,200 per month
    • Keep fixed costs at £900 per month
    • Cut fixed costs to £450 per month
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Answer key

For grown-ups. Fold this page away before handing over the rest.

Check each sale earns its keep W1-mt_NUoV6LB-o4-s1

  1. £7 per notebook · Contribution is £16 minus £9, which is £7. Fixed costs still need to be covered.
  2. The £3 of materials used per sale · Materials spending rises as sales use more materials. The stated weekly rent does not change with sales.
  3. True · The stated total rent is unchanged within the specified month and sales range.
  4. 100 sales · £1,200 divided by £12 is 100 sales. Their £1,200 total contribution covers the monthly fixed costs.
  5. A £3 shortfall per customer · Acquisition costs £360 divided by 24, or £15 per customer. The £12 first-order contribution leaves a £3 shortfall.
  6. It rises from £80 to £160 · Each sale contributes negative £2. At 40 sales the loss is £80; at 80 it is £160, before fixed costs.
  7. £24: total contribution is £300 · At £24, 50 times £6 gives £300. At £27, 30 times £9 gives £270. The £24 test gives £30 more contribution.
  8. Cut fixed costs to £450 per month · £450 divided by £5 requires 90 monthly sales, supported by demand and capacity for 100. £900 needs 180 sales and £1,200 needs 240, both above 100.
Worksheet · LightMySky