BMI3 – Pricing Worksheet – Part 1



BMI3 – Pricing Worksheet – Part 1

Name: ________________________________________________

1. What are 5 names for price?

2. Define and provide a formula for each term:

Profit:

Markup:

Margin:

Price:

Gross Profit:

BEP:

3. Cody opens a hotdog stand in front of the school:

- He pays $0.30 for every hotdog that he sells.

- Propane and condiments cost him an additional $0.22 per hotdog.

- He wants to make $0.23 profit per hotdog - Pays $200/month to rent the cart (Fixed)

Use an Excel Spreadsheet to answer the following:

a) What is his selling price?

b) What is the markup?

c) What is the margin?

d) What is the Gross Profit

e) What is BEP?

4. What are ways (3) that companies can try and reach the BEP sooner?

5. Mini Quiz:

There are two key factors that determine price:

a) b)

The difference between the price of a product and its cost is called ________________.

____________ is like markup, but it’s calculated after goods are sold.

If there is any money left over after all the expenses are paid, this is called ____________.

6. Suppose the total sale of laundry detergent products in Canada was 500 million dollars in 2006.  Complete the table below by calculating the percent share of the market for each brand name.  Use Excel to calculate the % of market share and then construct a pie chart to represent the data. 

|Brand |Sales (millions of dollars) |Percent market share |

|Tide |205 | |

|Cheer |111 | |

|Oxydol |95 | |

|President’s Choice |77 | |

|Other brands |12 | |

7. Check out this video and then calculate Wonderland’s BEP on the ride considering 4% of each ticket sold will be used to pay for the ride. The ride cost $4 million to buy and install (this the Fixed cost), and has a variable expense cost of .27 cents per person per admission. A typical wonderland admission is $25. How many Wonderland visitors are needed to reach the BEP?

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