Math‐in‐CTE Lesson Plan Lesson Title: Product Pricing and Markup Author(s): Nan Hammerschmidt Tiana Briones‐Smith Kim Ledesma Phone: 503.353.5959 503.829.2355 Email: [email protected]
[email protected] [email protected] Lesson Objective: Supplies Needed: Students will demonstrate their understanding of pricing by calculating unit cost, determining price and calculating markup for student store products. Calculator and pencil The 7 Elements 1. Introduce the CTE lesson. 2. Assess student’s math awareness as it relates to the CTE lesson. K‐Ask: What do you already know about how companies determine the selling price of a product? W‐Ask: What do you want to know before getting started? 3. Work through the math example embedded in the CTE lesson. The first example to the left is price based on Cost and a set Markup The middle example is price based on what Teacher Notes (and answer key) Script: Today you are going to decide what to price items based on calculating costs and mark‐ups. This information and processes will be useful to you as a manager of your department as you begin to price your products. Present the students with the KWL Chart to help determine the student’s awareness of the math needed to determine prices: mark‐up, adding, subtraction, multiplication, division, and percentages. Input Mark‐Up & Pricing vocabulary. KWL? What do they know about how a price is determined? Or how a company decides what to charge for a product? Think, Pair & Share the KWL. Walk them through the problem/table. COST column: Formula: 1 + desired markup percentage = markup Markup x cost = price 1+.3 = 1.3 competitors charge for their product and in this case deciding to price your product right in the middle – why would that make sense for the student store? (competition not directly on campus) Do you know what they call the middle number in math/statistics? (Median) What if I had checked 8 stores and averaged those prices to get the mid‐range price – what is that called in statistics? (Mean) What if I decided to use the most common price from the 8 stores I checked? (Mode) The last example is price based on Demand. In this case there is low demand for the product and a high supply. So a decision has been made to run a promotion and discount the price. 4. Work through related, contextual math‐in‐
CTE examples. 5. Work through traditional math examples. 1.3 x .6906 = .8978 Students may also calculate: Markup percentage x cost = markup Cost + markup = price .3 x .6906 =.20718 .6906 +.2718 = .8978 Competition Column: Price / cost ‐1 = markup percentage 2/.6906 ‐1 = 189% **Note: If students obtain 289%, they need to subtract 1 from the number calculated. Demand Column: Price / cost ‐1 = markup percentage 1/.6906 ‐1 = 45% Determining Mark‐up Table Activity Part I: If the class still seems unsure of the formulas, go through the first problem with the class and then ask them to complete the rest of the first chart on their own. Determining Mark‐up/Cost/Price Table Activity Part II: If the class still seems unsure of the formulas, go through the first problem with the class and then ask them to complete the rest of the second chart on their own. Have them work through questions 3‐9 on their own to determine costs and prices of a cup of hot chocolate. Hand out the math activity. Median: Middle number when the data is arranged in order from smallest to largest. In the event of an even number of numbers, find the average of the two middle numbers. Mode: The most common number in a series of numbers. If it exists. Mean: The average of all numbers. 6. Students demonstrate their understanding. Add relevance and turn into a CRLE (Career‐
Related Learning Experience) by bringing in Ask students to work in teams with their Sysco Vendor to discuss pricing department’s invoices and product information to determine unit cost and then Students set prices with information given price their department’s products (costs). Students complete student store product pricing worksheet with department team. Individually complete CRLS reflection 7. Formal assessment. KWL Chart: KWL Chart Have students turn back to KWL chart and fill‐
L‐ Ask: What do you now know about pricing? in the last column Students will price the products for their Complete formal math assessment department’s as a team and complete a CRLS reflection individually Administer formal math assessment