Social Studies
Objective: I can plan a pretend lemonade stand and figure out its costs, income and profit.
Standards: D2.Eco.7.3-5, D2.Eco.3.3-5, D2.Eco.1.3-5
Builds on: Needs Week 25 Day 1 (natural, human and capital resources) and Week 26 Day 2 (profit). One-minute check: "Is a baker's mixing bowl a natural, human or capital resource?" (Capital.)
- loss – what a business has when its costs are more than the money it takes in
Materials: 25 play $1 bills (or paper slips marked $1), 1 large sheet of paper, Markers, 2 index cards (what-if cards), Notebook, Pencil
- Warm-Up · 5 min
Spaced review from Week 25. Ask: "Name the three kinds of resources producers use." (Natural, human and capital resources.) Then ask the big question: "What would you need to run a lemonade stand?" Sort your child's list. Natural: water and lemons. Human: the seller and the sign maker. Capital: the pitcher, the table and the cooler.
- Mini-Lesson · 10–15 min
Say: "A business pays costs to make its product. Money from selling is its income. Profit is the money left after paying the costs." Model with bills. Say: "Lemons cost $4, sugar $3 and cups $2. 4 + 3 + 2 = 9. Costs are $9." Say: "The stand sells 20 cups at $1 each. Income is $20." Count out 20 bills. Move 9 into a costs pile. Say: "20 − 9 = 11. Profit is $11." Say: "Now a rainy day. The stand sells only 7 cups. Income is $7, but costs were $9. 9 − 7 = 2. The stand has a loss of $2." Say: "Profit is a signal. A good profit tells the seller to open again or make more. A loss tells the seller to change something." Ask: "Costs are $6 and income is $10. What is the profit?" ($4.) Ask: "After a loss, what might a seller change?" (The price, the supplies, the day or the place.) Ask: "Is all the money in the cash box profit?" (No. Costs must be paid first.) If stuck, say: "Put the cost money in its own pile first. Count what is left."
- Activity / Source Work · 15–20 min
Lemonade stand challenge. The stand is pretend. 1) Your child names the stand and writes the name on the large sheet of paper with markers. Write the price list below it: lemons $5, sugar $2, cups $3. Your child adds the costs. ($10.) 2) Your child picks a price, $1 or $2 a cup, and predicts how many cups will sell. 3) Draw a chart with four columns: Day | Cups sold | Income | Profit or loss. Costs stay $10 every day. 4) Write the two what-if cards. "It rains. You sell 5 cups." "A hot day. You sell 25 cups." Row 1 is the prediction. Rows 2 and 3 are the cards. 5) Your child works out each row. Check the $1 rows with the bills. At $1 a cup, rain brings a $5 loss and the hot day brings a $15 profit. At $2 a cup, rain brings $0 and the hot day brings a $40 profit. Say: "A higher price may mean fewer buyers." 6) Ask for evidence from the chart: "Which day earned the most? What would you change after the rainy day?" (Sample: sell only on sunny days.) Prediction rows differ. Look for income minus costs in every row.
- Notebook Entry · 10 min
In the notebook, your child splits the profit. "My profit is $___. I will put $___ in Save, $___ in Spend and $___ in Give." The three amounts must add up to the profit. Sample: "With a profit of $15, I will put $6 in Save, $7 in Spend and $2 in Give."
- Exit Ticket · 5 min
Your child solves the questions on paper. Praise putting the costs aside before naming the profit.
Watch for: Calling all the money taken in "profit" and forgetting to subtract the costs.
Try: Your child puts the cost bills in a separate pile first. Only the pile that is left is profit.
- A bracelet stand spends $7 on string and beads. It takes in $16 from sales. What is the profit?
- The next week the stand spends $7 again but takes in only $5. Is that a profit or a loss? How much?
- A seller earned a big profit on Saturday. What might the seller do next Saturday, and why?
Show answers
- $9 (16 − 7 = 9).
- A loss of $2 (7 − 5 = 2).
- Answers vary. Look for: open again or make more, because the profit shows people want the product.
Support: Use one price, $1 a cup. Your child lays out one bill for each cup sold, up to 20.
Extend: Your child tests $2 a cup with only 12 cups sold. (Income $24, profit $14.) Ask why a big profit might bring a second stand to the street. (Other sellers see a chance to earn too.)
Homework: With an adult, your child prices the real ingredients for one batch of lemonade or another snack. Add up the cost. Look for each price written and a correct total.
Practice page · Week 32, Day 3
Social Studies
I can plan a pretend lemonade stand and find its costs, income and profit.
Look: profit
- Add all the costs.
- Income = cups sold × price per cup.
- Profit = income − costs.
Lemons cost $5, sugar $2 and cups $3. Each cup of lemonade sells for $1.
- 1.
What are the total costs?
- 2.
Sunny day: you sell 22 cups. What is the profit?
- 3.
Rainy day: you sell only 4 cups. Did the stand make a profit or lose money? How much?
- 4.
Hot day: you sell 15 cups. What is the profit?
Write natural, human or capital for each resource.
- 5.
Lemons and water
- 6.
The pitcher and the table
- 7.
The person who makes the sign
Challenge: If your stand earned $12 profit, how would you split it into Save, Spend and Give? The parts must add to $12.
Materials: play money · poster paper