Lesson 2 - Costs and Profit

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A business can use a spreadsheet model to work out its costs and profit. 

• Costs are what a business has to pay out for stock, wages, and rent for example.
• Profit is the money the company makes from sales after the costs have been covered.

In today's lesson we are learning to:

• Understand how businesses use models to predict what might happen
• Be able to add formulae to a spreadsheet to work out costs and profit.

Tasks:

1. Make a copy of Miss Philbin's Costs and Profit and calculate the costs using a formula.
2. Next, we need to calculate the profit. 
3. Create a new Google Doc, and write a definition for the following terms:

• spreadsheet model
• revenue
• variable
• costs
• profit

Homework:

What is VAT? Write a definition and then explain what Miss Philbin will need to pay VAT on in her shop?