Math Lab Activity

Objective:

To investigate the relationship between profit and loss and the factors that affect the price of a product.

Materials:

• Computer or tablet with internet access
• Paper and pencil

Procedure:

1. Choose a product that you sell or that you would like to sell.
2. Research the current market price of the product. You can do this by searching online or by visiting a store that sells the product.
3. Decide what profit or loss percentage you would like to make on the product. A profit percentage is a percentage of the cost of the product that you add to get the selling price. A loss percentage is a percentage of the cost of the product that you subtract to get the selling price.
4. Calculate the final price of the product based on your desired profit or loss percentage. You can use the following formula to calculate the final price:

Final price = Cost price + (Cost price * Profit/loss percentage) / 100

5. Compare your final price to the current market price of the product.

Questions:

• Is your final price higher or lower than the current market price?
• If your final price is higher, how can you make your product more competitive?

You may need to consider lowering your profit percentage or finding ways to reduce your costs.

• If your final price is lower, how can you ensure that you are still making a profit?

You may need to increase your profit percentage or find ways to reduce your costs.

• What factors would you consider when setting the price of your product?

Some factors to consider include the cost of the product, the desired profit percentage, the prices of competing products, and the demand for the product.

Extension:

• Repeat the activity with different products and different profit/loss percentages.
• Create a graph or spreadsheet to show how the profit/loss percentage affects the final price of the product.
• Conduct a survey of friends and family to find out how much they would be willing to pay for your product at different price points.