1. The total amount of money I am willing to invest in this business is $100.
2. It will cost me $0.50 to make one serving of lemonade. This includes the cost of lemons, sugar, and water.
3. I will charge customers $2 for a glass of lemonade.
4. Yes, I believe my business will be profitable. The profit margin per glass of lemonade is $1.50 ($2 - $0.50). With a $100 investment, I can make 200 servings of lemonade. If all 200 servings are sold at $2 each, I will earn $400 in revenue. Deducting the cost of making the lemonade ($0.50 per serving), I will have $300 in total profit. Additionally, at a farmers market, there is typically a steady flow of customers during the summer, increasing the chances of selling all the servings.
You want to start a summer business to earn money. What will you do? You have to consider how much money you can afford to invest in this business, how much it will cost you to make each item, and how much you’re going to charge for each item. Research something that would be reasonable to make and sell with the startup investment you have determined.
You are going to start a lemonade stand at your local farmers market. Answer the questions:
What is the total amount of money you are willing to invest in this business?
How much will it cost you to make one serving of lemonade?
How much will a customer pay for a glass of lemonade?
Do you think your business will be profitable? Why or why not?
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