Webisode 1
GRADES 34
Lemons to Lemonade
Objective Students will learn that the location of a business
is an essential element to its success.
Webisode Summary Elena’s friend Brittany is trying to
raise money to go on a school trip by selling lemonade,
but nobody is buying it. The club concludes that Brittany’s
business has good product quality and prices, and there is
plenty of demand and no competition. Elena realizes that the
missing element of the business is location. Brittany moves
her stand from a quiet street to a busy soccer field and sells
lots of lemonade. Warren advises, “If the people won’t come
to your business, bring your business to the people.”
Financial Literacy Background
Some elements that are essential to a successful retail business include high
product quality and reasonable price point, low competition, high demand,
and location. Without a good location, an otherwise excellent retail business
cannot be successful. Once a location has been selected, it is important
to evaluate the consequences of that decision. Does the location draw in
customers? Is there a better location for the business?
For traditional retail businesses with a physical site, the location should
be somewhere easily accessible to the store’s customer base. A store on a
busy street can attract more customers than a store on a quiet side street.
Location is important for online businesses too. Online businesses need to
advertise so that their stores can be seen by the greatest number of online
shoppers. Even online, the best business can fail if nobody knows it’s there.
Secret Millionaires Club © 2010 A Squared Entertainment LLC
Location, Location, Location
• Introduce the activity scenario. Ask students to think about retail stores
that have more than one location. Encourage them to identify different
locations of that retail store chain in their area. Discuss the reasons that
might have been behind the company’s opening a store in that location.
Why is that location better than another? What customers does the company
hope to serve at that location?
• Have students work in pairs to do the exercises. Help students
understand that the average number of gallons of ice cream sold per hour
can be found by dividing the number of gallons sold by the number of hours
the location is open. Then students will need to order the numbers to find
the greatest and least numbers. For Exercise 2, encourage students to think
about what kinds of customers ice cream shops are likely to attract.
Activity
Discuss the definition of profit for a business and how it can be
found in this activity by subtracting the total cost of the space rental
from the total sales. Students will need to multiply the hourly cost of the space
rental by the total number of hours open each day to find the day’s total cost.
Then they should multiply the number of sales by $4 to find the total sales.
The difference will be the profit. Some students may need to use a calculator.
COMMON CORE STATE STANDARDS
Grade 3: CC.3.OA.3, CC.3.OA.7, CC.3.OA.8, CC.3.NBT.2
Grade 4: CC.4.OA.3, CC.4.NBT.4, CC.4.NBT.5, CC.4.NBT.6
NATIONAL STANDARDS IN PERSONAL
FINANCE EDUCATION
Financial Responsibility and Decision Making
Standard 4
Make financial decisions by systematically considering
alternatives and consequences.
RELEVANT 4TH GRADE EXPECTATIONS
• Outline the steps in systematically evaluating
alternatives and making a decision.
Prerequisite
Math Skills
✔ Division facts
✔ Multiplying by 1-digit numbers
✔ Subtracting multi-digit numbers
Vocabulary to Develop
average
cost
sales
profit
Get Creative!
Decision Making Questions
to discuss:
• How does the type of goods or
services a retail store offers influence
the best location for that store?
• What are some factors, other
than customer access, that should
be considered when a company
is deciding on a location for a
new store?
smckids.com/learnandearn
Webisode
1
Name
Lemons to
Lemonade
Location, Location, Location
Ice Cream Shack has four
locations in town. The table shows the number of gallons of ice cream sold at
each location on a weekday and how long each location was open.
Location
1.
Gallons Sold Hours Open
North
48
6
South
72
8
East
54
9
West
70
10
Find the average number of gallons each location sold per hour. Which
location sold the greatest amount per hour, and which sold the least amount
per hour? Explain your answer.
Greatest: South, Least: East; Possible explanation: I divided the number of gallons sold by the
number of hours to find the average number of gallons sold per hour; 48 ÷ 6 = 8; 72 ÷ 8 = 9;
54 ÷ 9 = 6; 70 ÷ 10 = 7. Then I ordered the average numbers of gallons sold; 9 > 8 > 7 > 6.
Secret Millionaires Club © 2010 A Squared Entertainment LLC
GRADES 3–4
2.
All of the Ice Cream Shack locations sell the same products for the same prices.
Why might the sales at the locations be different? Explain your answer.
Possible explanations: There might be more customers in the area of the South location, or
the service might be better.
Activity
The owners of Ice Cream Shack rent a space at a weekend art
festival to sell their ice cream. The space costs $35 per hour to rent. If each
ice cream sells for $4 at the festival, on which day did Ice Cream Shack make
the greatest profit? Explain your answer.
Day
Hours
Open
8
Space
Rental Cost
Saturday
Sunday
Friday
Total Sales
Profit
(Sales – Cost)
$280
Number
of Sales
300
$1,200
$920
10
$350
320
$1,280
$930
6
$210
290
$1,160
$950
Sunday; Possible explanation: $950 > $930 > $920.
Get Creative! What features about a location would make it a good spot to
open an ice cream shop? Possible answers: Being where customers will see it; lots of children
nearby; space to sit outside. smckids.com/learnandearn
Webisode
1
Name
Lemons to
Lemonade
Location, Location, Location
Ice Cream Shack has four
locations in town. The table shows the number of gallons of ice cream sold at
each location on a weekday and how long each location was open.
Secret Millionaires Club © 2010 A Squared Entertainment LLC
GRADES 3–4
Location
Gallons Sold Hours Open
North
48
6
South
72
8
East
54
9
West
70
10
1.
Find the average number of gallons each location sold per hour. Which
location sold the greatest amount per hour, and which sold the least amount
per hour? Explain your answer.
2.
All of the Ice Cream Shack locations sell the same products for the same prices.
Why might the sales at the locations be different? Explain your answer.
Activity
The owners of Ice Cream Shack rent a space at a weekend art
festival to sell their ice cream. The space costs $35 per hour to rent. If each
ice cream sells for $4 at the festival, on which day did Ice Cream Shack make
the greatest profit? Explain your answer.
Day
Friday
Hours
Open
8
Space
Rental Cost
Number
of Sales
300
Saturday
10
320
Sunday
6
290
Total Sales
Profit
(Sales – Cost)
Get Creative! What features about a location would make it a good spot to
open an ice cream shop?
smckids.com/learnandearn