Revenue, Costs, and Profit Activity-Marshmallow Towers

The video tutorial covers the concept of profit in business, emphasizing the importance of increasing revenue and reducing costs. It introduces a hands-on activity where students build towers using toothpicks and marshmallows, aiming to maximize profit by balancing height and cost. The tutorial explains how to calculate revenue and costs, including bonuses for tower integrity and strength. It also discusses fixed and opportunity costs, resource management, and the purchasing process. The session concludes with instructions for group work and planning to achieve the activity's objectives.

What are the two primary ways a business can increase its profit?

• Decrease both revenue and costs

• Increase costs and decrease revenue

• Increase revenue or decrease costs

• Increase both revenue and costs

In the tower-building activity, how is revenue calculated for each inch below 4 inches?

• $500 per inch

• $1000 per inch

• $2000 per inch

• $1500 per inch

What bonus is awarded if the tower can stand alone for 10 seconds?

• $1000

• $2000

• $3000

• $4000

What is the fixed cost for building the tower, regardless of its height?

• $500

• $400

• $600

• $300

How much does one toothpick cost in the activity?

• $200

• $50

• $100

• $150

What should be the primary focus when designing the tower?

• Making the tallest tower

• Building the widest tower

• Using the most materials

• Maximizing profit by minimizing costs

What is the role of the purchaser in the activity?

• To build the tower

• To calculate the total revenue

• To design the tower blueprint

• To fill out the invoice and manage materials