Skip to main content
FLC
Start Learning
Back to the lesson plan

Prints on letter paper. Turn off headers and footers in your print settings for the cleanest copy.

Financial Literacy Club

learnwithflc.org

NameDatePeriod

Understanding Businesses · Lesson 1

How Businesses Make Money

Part A. Vocabulary

Define each term in your own words.

Revenue

Expenses

Part B. Guided notes

Fill in each blank using the word bank.

Word bank: businesses · costs · Expenses · profit

  1. Profit = Revenue − .
  2. Revenue = price × quantity (for most simple ).
  3. Variable rise with sales; fixed costs don't.
  4. Revenue isn't .

Part C. Check your understanding

Circle the best answer.

  1. A food truck sells 200 tacos a day at $3 each.

    1. What's its daily revenue?

    • A. $203
    • B. $600
    • C. $200
    • D. It can't be known without expenses

  2. 2. Which is a fixed cost for a coffee cart?

    • A. Coffee beans
    • B. Paper cups
    • C. The monthly permit fee
    • D. Milk

  3. 3. A company with $10 million in revenue must be profitable.

    True/False

Part D. Apply it

Show your work.

  1. 1. A shop sells 150 T-shirts at $20. Each shirt costs $8 to make, and fixed costs are $400 for the month. Find revenue, total expenses, and profit.

  2. 2. Classify each cost as fixed or variable: rent, materials for each item, a website subscription, shipping for each order.

Part E. Think about it

Answer in complete sentences.

  1. 1. Pick a business near you. What are its biggest fixed and variable costs?

  2. 2. Why might a company choose to grow revenue quickly even while losing money?

Exit ticket

Name

Why isn't revenue the same as profit?