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Profit Lesson

Profit Lesson. Miss Page. To define the term profit To be able to calculate profit To be able to apply and analyse the impact of costs on Dominos and their profit margins. To identify hidden costs in the case of Dominos Pizza Article. Lesson Objectives.

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Profit Lesson

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  1. Profit Lesson Miss Page

  2. To define the term profit • To be able to calculate profit • To be able to apply and analyse the impact of costs on Dominos and their profit margins. • To identify hidden costs in the case of Dominos Pizza Article. Lesson Objectives

  3. On a scrap piece of paper write down the formulas for Total Costs Sales Revenue Profit Formula Test

  4. Profit = Sales Revenue – Total Costs • Total Costs = Fixed Cost + Variable Costs • Sales Revenue = Selling Price X N.O of unit sold How to calculate profit?

  5. Working Examples: Firm A’s total costs are £100,000 and their sales revenue is £156,000. Calculate their profit. Activity One

  6. Profit is surplus. It is the surplus of the value of sales made by a business overs its total costs of production. It is very important to entrepreneurs and small businesses for a number of reasons. • Profit is used as a measure of success by the owners of a business who have invested capital into it. • Banks and other lenders will be unlikely or unwilling to lend to a business that does not either forecast a profit- or actually make one • It is the return or reward to entrepreneurs and business owners for taking risks with their capital. If no profit is made, this will discourage further investment and may lead to business closure. • As a surplus, profit provides a source of finance for further expansion of the business (retained profit) The meaning and importance of profit

  7. Mini Quiz • Pizza Worksheet • Profit Calcuations • Continue with worksheet in your work pack Today’s Task

  8. The pizza firms slicing a 900% profit off your delivery: £1.25 to make a Margherita... but you pay £12.49 Domino’s Pizza

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