DYSART UNIFIED - CTE LESSON PLAN 2013-2014

COURSE:School Store Marketing 1-2

PROGRAM:Professional Sales and Marketing

TEACHER(S):Leslie Palombo

CURRICULUM UNIT/TITLE/# OF DAYS:Intro to Economics at 2 days

LESSON TITLE: Costs of Production Lesson

STANDARDS AND OBJECTIVES
CTE PROGRAM STANDARD - MEASUREMENT CRITERIA / Introduction to Economics
Identify the costs of production; Loss, Profit and total Revenue
COMMON CORE STANDARDS /
  • CCSS.ELA-Literacy.CCRA.R.1Read closely to determine what the text says explicitly and to make logical inferences from it; cite specific textual evidence when writing or speaking to support conclusions drawn from the text.
  • CCSS.ELA-Literacy.CCRA.SL.1Prepare for and participate effectively in a range of conversations and collaborations with diverse partners, building on others’ ideas and expressing their own clearly and persuasively.

OBJECTIVES / SWBA:
  • Explain that when producers purchase resources, they incur costs of production.
  • Define profit, total revenue, and total cost
  • Computer profit and loss
  • Explain that businesses incur losses when their total cost exceed total revenue

CHECKLIST OF ESSENTIAL CONTENT -IDEAS TO BE COVERED: (Lesson summary) /
  • Working in small groups students will simulate a business creating and producing new products.
  • Using budget guidelines, they must decide which inputs they will purchase.
  • They calculate their costs of production and then display their products to the class discovering how many units they can SELL.
  • They then calculate the profit or loss for their new product and compare results to the class.
  • Students can use this lesson to evaluate and adjust how they will create a new product for the market day project.

LESSON CONTENT
BELL WORK/
INTRODUCTION
ESSENTIAL QUESTION / Bell Work: Open the document labeled: 7 The Invention Convention
Power Point
As students enter the room, pass out the 7 Introduction to Economics Article reading. Have students read the article.
Put students in groups of two. Pass out the A and B cards. Explain to students A will read the first sentence to the B student. The b student will highlight important information. As you walk around make sure that you tell them to switch after reading each section.
Once students complete the reading and highlighting have them next use a pen or pencil and underline go back to the beginning of the read and have them identify the words that they did not understand or know.
Tell the students that today they will be working in small groups simulating business creating and producing new products.
KEY VOCABULARY / Profit-a total revenue minus total costs
Loss-if total costs exceeds revenue creating a negative figure which means a loss.
Revenue (Total)-a products selling price multiplied by the quantity sold
Costs of Production-average per unit cost multiplied by the quantity produced
TEACHER’S ACTIONS/ACTIVITIES: (include instructions w/all resources) / STUDENTS’ ACTIONS/ACTIVITIES:(include instructions w/all resources)
Define terminology
  • Have students turn over the paper and have them write the vocab words on the back that are listed in the power point
  • Have students write the definition of each on their own
  • Have students share with partner their definitions
  • Call on groups to share their definition of each word while you share the actual definition using the power point
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  • Students will write the words and defining each in their own words.
  • Students will need to share their definitions with the class
  • Students will need to make edits or changes to their definitions

The Invention
  • Put students in groups of 3 or 4
  • Ask them about an entrepreneurial experience they have had in the past such as a lemonade stand, cutting grass or babysitting
  • Ask them what materials did they need to prepare for it?
  • Have them list them on the hand out
  • Ask them how much did it costs for the materials
  • Explain to them that these are known as the costs of production for a business.
  • Discuss how they determined what prices to charge. Ask if they earned a profit?
  • Ask for non-volunteers to share their discussion with the class.
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  • Students think of a time in the past and write answers to questions
  • Student recall past information about materials needed and the costs.

Creating the Invention
  • Pass out the resource bag to each group
  • Pass out the Worksheet 7 Calculating Costs of Production to each student in each group.
  • Tell students that each group will simulate an actual business. They will invent a product that students in the class will want to purchase. All will have a chance to decide which invention they would like to buy. Groups will try and earn a profit just as a real business. You may want to offer a prize for the group that earns the most profit.
  • Show themthe Sample Resource Price List. Explain to them that they may use these resources to assemble the new product.
  • The $5.00 price means that each group must use decision-making skills to decide which resources to use.
  • Explain that each business will have only 15 minutes to produce a prototype of its invention, which will sell for $5. As they construct their prototype, students need to complete the Calculating Costs of Production worksheet. Remind them that they want to make the most profit so they need to keep the costs of production as low as possible.
  • Explain in detail how to calculate costs of production using the example on the worksheet.
  • After students finish their inventions they will total the costs of all the resources they used and they will determine the cost of producing one unit of their product.
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  • Students highlight key ideas on the rubric.
  • Students will need to record each resource on the form and calculate the resource price per unit, number of units used to complete the Total resource cost of each resource.

Presentations of Inventions
  • Once ALL of the groups are finished with their inventions have each group give only a max of one minute sales pitch promoting and demonstrating the invention to the class.
  • Align all of the inventions in a row on tables.
  • Place an envelope in front of each invention and label it by name of product so that students can place the $5 in each.
  • Explain that they now will be consumers. You need to pass out the $5 bill to each student so that they can buy one of the new products that the class just produced. (THEY MAY NOT PURCHASE THE INVENTION THAT THEY MADE)
  • Only have groups go up one at a time to purchase their invention. Tell them that they when they find the one they want to purchase place their $5 in the envelope.
  • Collect the envelopes and make sure that you have a $5 bill for the number of students that you have in the class.
  • Pass to the groups their envelopes so that they can record the number of purchases made based on the number of $5 bills they have.
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  • Students will present their invention to the class one group at a time ONLY have one minute to present and convince customers to purchase their new product.
  • Students will have one $5 dollar bill to purchase a product from the invention table.
  • Group will add up all of the $5 in their envelope to calculate the total amount of purchases.

Calculating Profit
  • Distribute the 7 calculating Profit worksheet to each group
  • Use the slide to show students
  • Call on each group to report the total cost and profit of their new product.
  • Determine which business had the highest profit.
  • Discuss possible reasons for this groups success
  • Discuss often businesses with the most sales is not the firm with the highest profits because it has higher production costs.
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  • Students will be completing the Calculating Profit worksheet.
  • Students will calculate the total Revenue, Total Costs, and Total Profit/Loss
  • Students share the profit/loss calculations with the class.

ALIGNED COMMON CORE ACTIVITY / Students will read the article and they will make logical inferences from it, and site specific evidence when sharing the information provide in the Introduction of the lesson. Students will collaborate, evaluate and present information at the end of the invention.
CHECK FOR UNDERSTANDING - ASSESSMENT / While the students are working on the inventions monitor their progress. Use both worksheets 7 Calculating Profit and 7 Calculating Costs of Production to check for understanding.
What eventually happens to a business if no one wants to buy its products?
  1. Makes a profits
  2. Goes out of business
  3. Begins to make revenues
What is profit?
A. Total revenue minus total cost
B. Costs minus profits
C. Total revenues plus costs
CLOSURE ACTIVITY / In the last five minutes of class, ask the students:
What resources do producers need to produce goods and services?
Discuss natural resources, human resources and capital resources
LESSON RESOURCES—include links to all online and DUSD Google Drive (Docs) resources
BOOKS/TEXTS
SUPPLEMENTALS
RESOURCES / Economics in action National council on economic education ny, ny
HANDOUTS
ACTIVITIES
INSTRUCTIONS
RUBRICS / 7 Costs of Production Lesson
7 Calculating Costs of Production, 1 copy for each student
7 Calculating profit, 1 copy for each student
7 Five Dollar Bills, 1 bill for each student
7 Introduction to Economics, 1 copy for each student
7 The Invention Convention PP
SUPPLIES NEEDED /
  • Computers, Online access
  • Highlighters
  • Envelopes
  • Bags full of the resources for the invention

NOTES: / Make sure that you prepare your supplies that are noted in the Power Point. If you want you can use other supplies make sure that you put a price for each item.