| Lesson Plan |
| Grade: |
Date: 25/02/2026 |
| Subject: Business Studies |
| Lesson Topic: use cost data to help make simple decisions, e.g. which product to produce, whether to continue or stop production, what price to set, help choose suppliers |
Learning Objective/s:
- Identify and classify fixed, variable, semi‑variable, direct, indirect, sunk and opportunity costs.
- Calculate total cost per unit and contribution margin to evaluate product viability.
- Apply cost‑plus and contribution‑margin methods to set selling prices and choose suppliers.
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Materials Needed:
- Projector and screen
- Printed cost‑classification handout
- Worksheet with product cost data
- Calculator or spreadsheet software
- Whiteboard and markers
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Introduction:
Begin with a quick poll: “If you had $10,000 to invest in a product, which would you choose and why?” Connect to prior knowledge of fixed vs variable costs, then outline that today students will use cost data to make four key business decisions.
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Lesson Structure:
- Do‑Now (5'): Students list examples of fixed, variable and sunk costs from everyday life.
- Mini‑lecture (10'): Review cost classifications and their relevance to decision‑making (slides).
- Guided practice (15'): Work through the “Which product to produce?” example, calculating total cost per unit.
- Group activity (15'): Using the supplied worksheet, calculate contribution margins and decide whether to continue production for Alpha or Beta.
- Pricing & supplier choice (10'): Demonstrate cost‑plus pricing and compare supplier tables; groups recommend a supplier.
- Check for understanding (5'): Quick quiz via Kahoot on cost types and decision steps.
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Conclusion:
Recap the link between cost classification, contribution margin and business decisions. Students complete an exit ticket stating one decision they could make using today’s calculations and a homework task to find a real‑world cost example to classify.
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