Quick summary: In this lesson, students will plan a budget for the running of their sideshow game at a real or imagined student fair or fete, and then record and calculate revenue, cost and profit (or loss) from the (real or imagined) takings from operating the game.
Calculating the ‘break-even’ point for their game will be a critical practical implication for the potential use of their game in a student-led fundraising fete or fair, as a possible (optional) post-unit activity.
This lesson sequence will require 2 standard classroom periods of 45-50 minutes to complete.
- Students will understand basic business budgeting concepts, including fixed costs (expenses), variable costs (expenses), total costs (expenses), revenue, profit, loss and break-even
- Students will use mathematical reasoning to ensure a reasonable and viable price for their Sideshow Game and learn how to use financial estimates within a simple budget
- Students will use a pre-prepared spreadsheet template to record their budget information and generate a graphical representation of both costs and revenues to predict a break-even point in the sale of their Sideshow Game ‘product’.
21st century skills:
Australian Curriculum Mapping
Years 5 to 8 Mathematics:
- Create simple financial plans (ACMNA106)
- Solve problems involving profit and loss, with and without digital technologies (ACMNA189)
Syllabus outcomes: MA3‑1WM, MA3‑2WM, MA3‑3WM, MA3‑5NA
General capabilities: Information and Communication Technology (ICT) Capability, Numeracy, Creative and Critical Thinking, Ethical Understanding.
Relevant parts of Year 5 to 8 achievement standards:
By the end of Year 5, students can check the reasonableness of their calculations using estimation. Students use mathematical modelling to solve financial and other practical problems, formulating and solving problems, choosing arithmetic operations and interpreting results in terms of the situation. They interpret and compare data represented in line graphs. Students conduct repeated chance experiments, list the possible outcomes, estimate likelihoods and make comparisons between those with and without equally likely outcomes.
Topic: STEAM/STEAM, Sustainability.
This lesson is part of the wider unit of work: Sustainable STEM Sideshow.
Time required: 90 mins (approx. two standard lessons).
Level of teacher scaffolding: Medium – As a teacher, you will need to explain basic business budgeting concepts including fixed costs (expenses), variable costs (expenses), total costs (expenses), revenue, profit, loss and break-even.
You’ll also need to help students estimate each of these items and use these financial estimates within a budget, including the basic operation of Excel spreadsheets OR manually plotting graph lines for each of the above items.
- Access to computers or devices capable of running Microsoft Excel © spreadsheeting software (e.g. through Office 365)
- Electronic whiteboard or data projector, for demonstrating and discussing lesson content
- Excel spreadsheet template document, distributed to each student (or student team): My STEM Sideshow P&L Plan
- Student Worksheet for Lesson 4: Profit and Loss (Financial Mathematics) (one per student)
Keywords: fixed costs (expenses), variable costs (expenses), total costs (expenses), revenue, profit, loss, break-even, spreadsheet, cost curve, revenue curve, profit curve.
Cool Australia’s curriculum team continually reviews and refines our resources to be in line with changes to the Australian Curriculum.