Heart of the City
SchoolstoBusiness
Business Maths
Challenge
Heart of the City
SchoolstoBusiness
Business Maths
Challenge
Business Maths
Challenge
Business Maths
Challenge
Introduction
Work it Out!
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Your local sweet shop earns £2,000 revenue per week from the sale of
newspapers, magazines, greetings cards, stationery items and sweets.
Revenue is another name for all of a businesses’ income – that is, all of the
money that the business earns.
The sweet shop also earns 4% interest per year on money deposited in a
business savings account – the interest is earned on the balance which
stays at £30,000 during the year. This interest payment is included as revenue.
The sweetshop has the following items of expenditure – that is, the money that
the business has to spend:
 Stock of items to sell £4,000 per month
 Staff Wages - £2,500 per month
 Rent - £1,500 per quarter (every 3 months)
 Other expenses (insurance, equipment and so on) - £100 per month
 Question: what is the Gross Profit for the year?
(total revenue minus total expenditure)
Business Maths Challenge - Answer
• Total Revenue – (£104,000 plus £1,200 = £105,200)
• Total Expenditure – (£48,000 + £30,000 + £6,000 + £1,200 = £85,200)
• Gross Profit = £20,000
Review
Business Words
Challenge
Fill in the Blanks!
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N__ P_____ is Gross Profit less tax paid (3 letters and 6 letters).
R______ is another word for all of the income that a business earns (7).
E__________ is another word for the money a business spends (11).
If a manufacturing business wants to expand quickly by buying a new
factory but does not have enough money it can go to a bank and ask for a
L___ (4).
If you save money in a deposit account at a bank or building society you
will normally earn I_______ (8).
If you ask a bank for a Loan you will normally have to pay I_______ (8).
If a business has a bigger Expenditure than Revenue it will make a L___
(4).
If more and more people want to buy a certain product we could say that
D_____ has increased for that product (6).
A S_____ Enterprise is a business where profits are normally reinvested in
the community or for a worthwhile cause, rather than returned to
shareholders (6).
The P_____ S_____ is the part of the economy controlled by government
spending and employment (6 and 6).
Review
Notes about the Content
These lesson plans have been provided as part of a
collaborative project led by Heart of the City.
Contributors include: Bank of America Merrill Lynch, BT,
Business in the Community, City Action, City of London
Corporation, Clifford Chance, Deloitte, East London
Business Alliance, Heart of the City, KPMG, Linklaters,
Newham Education Business Partnership, Nomura,
Sapphire Systems Plc, Tower Hamlets Education
Business Partnership, UBS Ltd.
The lessons were developed by Miken Associates UK
Limited.