Entrepreneur Math Quiz

Jason Lowe

Tier 1

Quiz

Entrepreneur Math Quiz

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Lesson Plan

Entrepreneur Math Quiz

Students will be able to demonstrate proficiency in fundamental mathematical calculations essential for managing a small business, as often found on the Entrepreneurship and Small Business Certification exam.

Understanding these math concepts is crucial for making informed financial decisions, pricing products correctly, and ultimately ensuring the profitability and sustainability of a small business.

Audience

12th Grade Students

Time

30 minutes

Approach

Through a targeted quiz.

Materials

Entrepreneur Math Quiz

Prep

Review Materials

10 minutes

Review the Entrepreneur Math Quiz and its answer key (to be generated separately) to ensure familiarity with the questions and expected responses.
Make copies of the Entrepreneur Math Quiz for each student if administering physically.

Step 1

Introduction and Instructions

5 minutes

Begin by explaining that today's activity is a quiz designed to assess their understanding of key math concepts relevant to the Entrepreneurship and Small Business Certification exam.
Distribute the Entrepreneur Math Quiz to each student.
Instruct students to work independently and show their work where applicable. Answer any clarifying questions about the format.

Step 2

Quiz Completion

20 minutes

Allow students to complete the Entrepreneur Math Quiz.
Circulate the room to monitor progress and provide support without giving answers. Remind students of the time remaining.

Step 3

Collection and Wrap-up

5 minutes

Announce that time is up and collect all quizzes.
Briefly discuss the importance of these math skills in real-world business scenarios.
Inform students when they can expect feedback on their quiz performance.

Slide Deck

Ready for Business Math?

Sharpen Your Entrepreneurial Skills!

Today, we're going to tackle some math challenges that every business owner faces. These skills are vital for success in the world of entrepreneurship and will help prepare you for the Entrepreneurship and Small Business Certification exam. Get ready to put your thinking caps on!

Welcome students and introduce the topic of business math. Ask them to think about why math is important for a business owner.

Why Math Matters to Entrepreneurs

Profitability: Calculate how much money you make.
Pricing: Set competitive and profitable prices.
Budgeting: Manage expenses and resources wisely.
Growth: Measure success and plan for the future.
Decision Making: Make smart choices based on data.

Elaborate on why math is crucial. Give examples like pricing, managing expenses, calculating profits, and understanding growth.

Today's Entrepreneurial Challenge

We're going to take a short quiz to test your understanding of these essential business math concepts.

This quiz will help you identify areas where you're strong and areas where you might want to focus more attention as you prepare for the Entrepreneurship and Small Business Certification exam.

Instructions:

Work independently.
Show your work where possible.
Do your best!

Introduce the quiz. Explain it's a diagnostic tool, not just a test. Reassure them that it's okay to try their best and learn from it.

Good Luck, Future Entrepreneurs!

You've got this!

Remember, every challenge is an opportunity to learn and grow your skills. Take your time, think critically, and apply what you know.

Let's get started!

Provide a brief encouraging send-off before distributing the quizzes.

Answer Key

Entrepreneur Math Quiz Answer Key

Here are the answers and explanations for the Entrepreneur Math Quiz.

Question 1

Prompt: A small business buys a product for $15 and sells it for $25. What is the gross profit per unit?

Answer: $10

Explanation:
Gross Profit = Selling Price - Cost Price
Gross Profit = $25 - $15 = $10

Question 2

Prompt: If a product costs $40 to make and the desired markup is 25% on cost, what is the selling price?

Answer: $50

Explanation:
Markup Amount = Cost Price * Markup Percentage
Markup Amount = $40 * 0.25 = $10
Selling Price = Cost Price + Markup Amount
Selling Price = $40 + $10 = $50

Question 3

Prompt: A coffee shop has fixed costs of $1,000 per month. Each cup of coffee sells for $3 and has a variable cost of $1. What is the break-even point in units (cups of coffee)?

Answer: 500 cups

Explanation:
Contribution Margin per Unit = Selling Price per Unit - Variable Cost per Unit
Contribution Margin per Unit = $3 - $1 = $2
Break-Even Point (Units) = Fixed Costs / Contribution Margin per Unit
Break-Even Point (Units) = $1,000 / $2 = 500 cups

Question 4

Prompt: A shirt is originally priced at $30. If it's on sale for 20% off, what is the sale price?

Answer: $24

Explanation:
Discount Amount = Original Price * Discount Percentage
Discount Amount = $30 * 0.20 = $6
Sale Price = Original Price - Discount Amount
Sale Price = $30 - $6 = $24

Alternatively:
Sale Price = Original Price * (1 - Discount Percentage)
Sale Price = $30 * (1 - 0.20) = $30 * 0.80 = $24

Question 5

Prompt: Last year, a business generated $50,000 in revenue. This year, revenue increased to $55,000. What is the percentage increase in revenue?

Answer: 10%

Explanation:
Increase in Revenue = Current Year Revenue - Last Year Revenue
Increase in Revenue = $55,000 - $50,000 = $5,000
Percentage Increase = (Increase in Revenue / Last Year Revenue) * 100
Percentage Increase = ($5,000 / $50,000) * 100 = 0.10 * 100 = 10%

Question 6

Prompt: An entrepreneur purchases 150 units of a product at $8 per unit. What is the total inventory cost for these units?

Answer: $1200

Explanation:
Total Inventory Cost = Number of Units * Cost per Unit
Total Inventory Cost = 150 * $8 = $1,200