Lesson Plan

• Calculate gross profit and gross margin percentage from financial data.
• Explain the significance of gross margin for business decision‑making and industry comparison.
• Identify common errors when computing gross margin and correct them.
• Interpret gross margin results to suggest pricing or cost‑control actions.

• Projector or interactive whiteboard
• Calculator or spreadsheet software
• Printed worksheet with practice questions
• Example financial statements (e.g., ABC Ltd. data)
• Whiteboard and markers
• Rulers for drawing a bar chart (optional)

Begin with a quick poll: “If you sold a product for £1, how much should remain after covering the cost of the goods?” Connect to prior learning on profit and loss statements. Explain that today’s success criteria are to accurately compute gross margin and interpret its business implications.

1. Do‑now (5’) – Students calculate gross profit from a simple sales/COGS table on the board.
2. Mini‑lecture (10’) – Introduce gross margin definition, formula, and why it matters, using the ABC Ltd. example.
3. Guided practice (12’) – Whole class works through the step‑by‑step calculation, filling in a worksheet.
4. Independent practice (10’) – Students solve the three practice questions, checking answers with a partner.
5. Common mistakes discussion (8’) – Highlight typical errors and have students correct a flawed example.
6. Concept‑check (5’) – Quick exit ticket: write the gross margin percentage for a given set of figures.

Summarise that gross margin shows the profit left after direct costs and guides pricing and cost control. Ask students to submit their exit ticket and remind them to complete the worksheet for homework, applying the formula to a new set of data.