Download chocolate chip cookies

Name _______________________ Class _______________ Date _________
BUSINESS COSTS
Directions: You have a business baking and selling chocolate chip cookies one
day a week at your school. Below is the recipe you use to make enough cookies
to sell in one day. Using this recipe, determine the quantity of ingredients you will
need to purchase. For example, does one package of butter contain 2 cups. If
not, you will need to buy more than one package of butter. In this case, you will
enter “2” in the Quantity Purchased column. After you have determined the cost
of making the cookies, answer the questions below.
CHOCOLATE CHIP COOKIES
Amount
Item
Needed
Butter
2 cups
Baking soda
2 teaspoons
Oatmeal
5 cups
Brown sugar
2 cups
Hershey Bar
8 oz.
Baking powder
2 teaspoons
Vanilla flavoring
2 teaspoons
Flour—plain, all-purpose 4 cups
Sugar
2 cups
Chocolate chips
24 ounces
Eggs
4
Nuts
3 cups
Total Cost
Quantity
Purchased
Price Per Unit
Total
What is the total cost of making the cookies? ___________________________
Are these fixed costs or variable costs? Provide examples of both types of costs
for your cookie business. ___________________________________________
_______________________________________________________________
_______________________________________________________________
What are some ways you can reduce the costs of operating your business?
_______________________________________________________________
_______________________________________________________________
Name _______________________ Class _______________ Date _________
SUPPLY AND DEMAND
Directions:
1. Before beginning this exercise, decide on one item (product or service) that
you would like to sell. Determine the price for the item.
2. Calculate the following amounts. Fill in the prices in the chart below.
 Price plus 50%

Price plus 25%

Price minus 25%

Price minus 50%
3. Ask 25 people to answer the following question:
If I had a (choose an item) for sale at the following price, would you buy
it?
4. Keep a tally of the number of “yes” and “no” answers at each price.
Item for Sale
Yes
No
Price  50%
Price  25%
Price
Price  25%
Price  50%
(continued)
5. After you have data from 25 people, graph the number of individuals who
answered “yes” for each price. This is the demand curve graph.
Price + 50%
Price + 25%
Price
Price – 25%
Price – 50%
5
10
15
20
25
6. Graph the number of items you would be willing to sell at the various prices.
This is the supply curve graph.
7. Based on your graph, answer the following questions:
a. At what price were the most people willing to buy the item?
b. At what price were the least people willing to buy the item?
c. What is the equilibrium price?