February 21, 2012
by ictatshr
Starter: Wordwall Quiz
Please open Sid’s Snow School model which you saved into your documents last lesson
Task 1 – Adding extra costs to the spreadsheet
You may have completed this last lesson – check to see that you have the costs below and also check that your formulae are correct.
Sid has just realised that he has left out some costs for the ski school and these need to be added in. These are;
- Rent of Premises: £750
- Electricity: £150
To add these variables to the model you firstly need to add in some extra rows.
Task 2 – Sid’s new products
Sid has decided to sell hot drinks, ski gloves and hats.
Add these products to both the revenue and costs section of your model by adding new rows.
Cost details from Sid’s suppliers are below;
- Hot drinks: Cost – £0.20, Sid is buying 250
- Ski gloves: Cost – £7.00, Sid is buying 35
- Hats: Cost – £5.00, Sid is buying 42
Add this information to your costs.
Task 3 – Making a profit
Sid will need to sell his products for more than he bought them for.
- He has decided to sell his hot drinks for £1.50 and he will sell all of them. Add this to the model and calculate the revenue from the hot drinks.
He wants to sell the Ski Gloves and Hats for double the price he has paid for them. This is 200% of the cost and is called the “Mark Up”. Again, he thinks he will sell all the Gloves and Hats.
- Calculate the price that Sid will sell the Gloves and Hats for and then work out the revenue.
Extension
Enter 200% in a separate cell on your spreadsheet and label it as Mark Up in the cell above or to the left.
Now, using absolute cell references ($A$1 etc.) can you create a formula that uses the Mark Up to calculate the prices Sid will charge for his hats and gloves? This might help…

If it works you should be able to easily change the Mark Up percentage and see the effect on profit.
Pick a new Mark Up and see if you can guess what the new profit figure will be – make the change and see how close your guess was.
Challenge a friend to see if they can do better than you!