Mr Profits Ledger Worksheet Mr. Profit's Ledger
Industryville Hat Factory • Accounting Dept.
NAME:
DATE:
Warm-up: The Basics
Define Revenue:
Define Cost:
Part 1: The Current Ledger
Mr. Profit sells hats for $20.00 each. Use the data below to calculate his current profit per hat.
Item Type Description Amount ($) REVENUE Selling Price per Hat $ 20.00 Cost A Raw Materials (Fabric, Thread) $ 5.00 Cost B Rent & Utilities (The Factory) $ 5.00 Cost C Labor (Current Worker Wage) $ 5.00 Total Cost Sum of Costs A + B + C PROFIT Revenue - Total Cost
Part 2: The Wage Demand
The cost of living in Industryville has gone up! The workers are demanding a Labor increase to $8.00 per hat. Calculate the new profit.
New Total Cost
New Profit Margin
Critical Thinking:
"Is Mr. Profit making enough money to stay in business? What happens if his profit drops to zero?"
Part 3: Propose a Pivot
Mr. Profit is panicked. Propose three different solutions to keep the business alive while addressing the wage demand.
01
Solution Name / Description
02
Solution Name / Description
03
Solution Name / Description
Final Reflection
If Mr. Profit decides to raise the price of the hat to $25.00 to cover the new wages, how does this affect the workers who also buy hats in Industryville?
Profit Pro Reference Sheet Profit Pro
The Business Owner's Math Kit
1. Revenue
All the money coming into the business from sales.
Price Quantity Money In
2. Total Cost
All the money the business spends to create a product.
Materials + Rent + Labor Money Out
3. The Profit Secret
What is left over for the owner after all bills are paid.
REVENUE MONEY IN
COSTS EXPENSES
PROFIT SUCCESS
Business Scenarios
Profit > 0
The business is growing! Money can be used for raises, new equipment, or saved.
Profit < 0
The business is "in the red." It is losing money and might have to close its doors.
Industryville Economic Development Council • Grade 6-8 Reference Material
Profit Pivot Slides Industryville Economics
The Profit
Pivot
Exploring the high-stakes balance between worker wages and business survival.
Business
Labor
Government
Warm-up
Revenue
The total amount of money a business receives from selling its goods or services.
$ +++
Cost
The money spent by a business to produce its goods (Rent, Materials, Wages).
$ ---
Inside Industryville
WATCHING: 3:44 - 5:42
Embedded media
"Focus Question: What does Mr. Profit care about most, and why?"
Meet
Mr. Profit
Owns the "Means of Production" (Factory & Machines)
Goal: Maximize profit by keeping costs low
Perspective: "Better to have a job than a raise!"
$
The Face of Business
The Ledger Challenge
Scenario A: Normal
Revenue: $20.00
Materials: $5.00
Rent: $5.00
Labor: $5.00
Profit: $5.00
Scenario B: Raise!
Revenue: $20.00
Materials: $5.00
Rent: $5.00
Labor: $8.00
Profit: ? ? ?
Your Mission
Open your Ledger Worksheet and calculate the new profit.
What is the new profit?
How do we save the business?
1. Raise Prices
Sell the hat for $25 instead of $20. Who does this hurt?
2. Cut Materials
Use cheaper fabric. Will people still buy the hat?
3. Cut Profit
Mr. Profit takes home less. Can he still grow the factory?
4. Innovation
Buy a robot that makes hats faster. Does this help the workers?
The Final Question
If Mr. Profit raises the price of hats to cover the wages...
Did the workers actually get a raise?
Discussion Time
