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Vocabulary
cost of productionselling priceprofits
Skills
  • explain (how cost of production affects profits) #dok2
  • explain (how selling price affects profits) #dok2
  • analyze (relationships between costs, prices, and profits) #dok3
Learning Targets
  • I can explain how the cost of making a product or service affects the amount of profit a business earns. #dok2
  • I can explain how the price something is sold for can increase or decrease profits for a business. #dok2
  • I can analyze how changes to costs and prices impact how much profit a business will make. #dok3
Big Ideas
  • Profit is affected by both how much it costs to make a product or provide a service and by the price at which it is sold.
  • Businesses must consider production costs and selling prices to make decisions that increase profits.
Essential Questions
  • What happens to profits when the cost of making something goes up or down?
  • How does the price a business charges for its product or service affect its profits?
  • Why do businesses need to think about both their costs and their selling prices?
  • Can a business still make a profit if it sells at a low price? Why or why not?
  • How do cost of production and selling price work together to impact profit?