Business Finance

1
Business Finance

• Calculations
• Record Keeping

2
Fixed and Variable Cost

• Fixed cost set amount regardless of production
  or sales
• Variable cost amount changes for quantity used
  or time spent

3
Lemonade Stand Activity

• Step 1 Brainstorm all the items you would need
  to start a lemonade stand
• Answer Table, chair, pitcher, lemonade, water,
  sugar, ice, cups, sign

4
Lemonade Stand Activity

• Step 2 Divide the items into fixed costs and
  variable costs
• Fixed table, chair, pitcher, sign
• Variable water, ice, lemonade, sugar, cups

5
Lemonade Stand Activity

• Step 3 Create a formula to calculate the cost
  of running your lemonade stand for the first day
  of business
• Table Chair Pitcher Sign X Water X Ice
  X Lemonade X Sugar X Cups Cost
• Total Fixed (Variable)(Number Made) Cost

6
Your Project

• On the T-Chart provided list all of your fixed
  costs (spent before you open your doors) on the
  right and variable costs (spent as you operate
  your business) on the left
• Be meticulous and list things item by item.
  Later we will group some things (pens, paper,
  etc. as office supplies)