Pricing So the Numbers Work · seed 1 · A4, ink-friendly. The answer key prints on its own page for grown-ups.

Price it so the numbers work

Life Skills · Entrepreneurship · ages 12-13
Name ______________________   Date ____________

  1. Your stall fee is $100 and each wristband keeps a $2 margin. How many must you sell to break even?

    Answer: ______________

  2. Each cookie costs $2 to make and sells for $5. What is the margin on one cookie?

    • $7
    • $3
    • $2

  3. What does break-even mean?

    • Profit hits exactly zero
    • Every item is sold out
    • The price covers the adverts

  4. Which costs belong in the cost of making one unit?

    • Only the main part, forget the small bits
    • Every part, including string and clasps
    • Only the parts customers ask about

  5. Lemonade costs $1 a cup to make and sells for $3. The stand fee is $60. How many cups break even?

    Answer: ______________

  6. Selling below unit cost is fine as long as you sell a huge number.

    Circle one:   True   False

  7. Two sellers face a $80 fee. Ali sells at $6 with $2 unit cost. Ben sells at $5 with $4 unit cost. Who breaks even first?

    • Ben, because his price is lower
    • Ali, because his $4 margin beats $1
    • Both, because the fee is the same

  8. Wristbands at $5 with $3 unit cost break even at 50 units on a $100 fee. You cut the price to $4. What happens to break-even?

    • It stays at 50 units
    • It falls to 25 units
    • It doubles to 100 units
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Answer key

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

Price it so the numbers work W1-mt_m4DGdFIm5h-s1

  1. 50 · Divide fixed cost by margin: 100 divided by 2 is 50.
  2. $3 · Margin is price minus unit cost: 5 minus 2 is 3.
  3. Profit hits exactly zero · At break-even you have covered all costs but earned nothing yet.
  4. Every part, including string and clasps · Forgotten parts still cost money, so count every part.
  5. 30 · Margin is $2, and 60 divided by 2 is 30.
  6. False · Each sale loses money, so volume only grows the loss.
  7. Ali, because his $4 margin beats $1 · Ali needs 20 units while Ben needs 80, so Ali gets there first.
  8. It doubles to 100 units · The margin shrinks to $1, and 100 divided by 1 is 100.
Worksheet · LightMySky