Lesson Plan

Resources → Subject Notes → Business → Notes
Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: the impact on the statement of profit or loss of a given change
Learning Objective/s:
  • Describe the purpose and typical order of items in a statement of profit or loss.
  • Calculate the effect of a specific change (e.g., price, cost, expense) on each line of the statement.
  • Analyse how fixed versus variable changes alter gross profit, operating profit and net profit.
  • Apply a step‑by‑step method to trace the impact through the statement and express the percentage change.
  • Evaluate exam‑style questions using a checklist of impact analysis.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed profit‑and‑loss statement worksheets (before/after change)
  • Calculator or spreadsheet software
  • Whiteboard markers and flip chart
  • Sample case‑study handout
  • Quick‑reference checklist sheet
 Introduction:
Begin with a real‑world headline about a company raising its selling price and the resulting profit surge. Ask students what financial figures they would expect to change first. Explain that by the end of the lesson they will be able to trace any single change through the entire profit‑and‑loss statement and state the success criteria.
Lesson Structure:
  1. Do‑now (5'): Students complete a quick fill‑in of the profit‑and‑loss order on a blank template.
  2. Mini‑lecture (10'): Review the structure of the statement and the arithmetic links between lines.
  3. Guided example (15'): Walk through the 10% sales‑price increase example, calculating each line together.
  4. Partner activity (12'): Using a new scenario (e.g., raw‑material cost rise), students recalculate the statement and record percentage changes.
  5. Check for understanding (5'): Teams present one line’s impact and explain why it propagated as it did.
  6. Exam‑question practice (8'): Students answer a past‑paper style question using the checklist.
  7. Reflection (5'): Whole‑class summary of key steps and common pitfalls.
Conclusion:
Recap the five‑step checklist for analysing any change to the profit‑and‑loss statement. Ask each student to write one “exit ticket” sentence stating the most important insight they gained. Assign homework: complete a worksheet that requires tracing a 5% increase in operating overheads through the statement and preparing a brief written explanation.