QR Challenge: Business Math: Costing/Breakeven Scavenger Hunt

Created using the ClassTools QR Treasure Hunt Generator

Teacher Notes

A. Prior to the lesson:

1. Arrange students into groups. Each group needs at least ONE person who has a mobile device.

2. If their phone camera doesn't automatically detect and decode QR codes, ask students to

• Download a QR reader (e.g. I-Nigma | NeoReader | Kaywa) onto their mobile devices
• Bring these devices into the lesson.

3. Print out the QR codes.

4. Cut them out and place them around your class / school.

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B. The lesson:

1. Give each group a clipboard and a piece of paper so they can write down the decoded questions and their answers to them.

2. Explain to the students that the codes are hidden around the school. Each team will get ONE point for each question they correctly decode and copy down onto their sheet, and a further TWO points if they can then provide the correct answer and write this down underneath the question.

3. Away they go! The winner is the first team to return with the most correct answers in the time available. This could be within a lesson, or during a lunchbreak, or even over several days!

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C. TIPS / OTHER IDEAS

4. A detailed case study in how to set up a successful QR Scavenger Hunt using this tool can be found here.

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Questions / Answers (teacher reference)

Question	Answer
1. What cost curve is shown as a horizontal line in the short term?	Fixed cost curve
2. What is the formula for calculating breakeven point?	FC /(P-VC)
3. Given fixed costs of $5000, unit price of $5 and unit variable cost of $1; what is the breakeven point?	1250 units
4. How much profit/loss is made if 500 units are sold at $8 each, with fixed costs of $1500 and unit variable costs of $2?	$1500
5. What is the formula for calculating the breakeven point needed to achieve a target profit amount?	FC+Target Profit /(P-VC)
6. Calculate the breakeven point from the following information: Fixed Costs $12000, Price $10, Variable Cost $2?	1500 units
7. What is the contribution margin per unit for: Price 4100, Variable Cost $5?	$95
8. Calculate the breakeven point from the following information: Fixed Costs $12000, Price $10, Variable Cost $2, Target profit $6000?	2250 units
9. What is the formula to calculate margin of safety?	Actual Output - Breakeven point
10. What is the fixed cost if 2000 units with a variable cost of $4 each and results in a total cost of $11000?	$3000
11. What is the variable cost if 3000 units with a fixed cost of $4000 each results in a total cost of $11500?	$2.50
12. Actual output is 1500 units. Fixed costs are $7000, price is $10 and variable cost is $3. What is the margin of safety?	500 units
13. State the formula to calculate contribution.	Price - Variable Cost
14. State the formula to calculate total contribution.	(P - VC)xQ or TR-TVC
15. Calculate the contribution per unit: Fixed Costs $5000, Price $8, Variable Cost $5.	$3
16. Calculate the breakeven point: Fixed Costs $5000, Price $8, Variable Cost $5.	1666.6667 units but it should always be rounded to the next whole unit ie 1667
17. How much profit or loss is generated if the company is achieving its breakeven output target?	nil
18. Fixed costs are always described as $xx per ????	time period eg per month or per year
19. Variable costs are always described as $xx per ????	unit eg per teddy bear
20. What is the contribution margin per unit given a price of $100 and variable costs of $5?	$95
21. Calculate the breakeven point using the following pieces of data: Fixed Costs $100,000, Price $12, Variable Costs $2.	10,000 units
22. Calculate the breakeven point using the following pieces of data: Fixed Costs $450, Price $30, Variable Costs $21.	50 units
23. Calculate the breakeven point using the following pieces of data: Fixed Costs $2700, Price $15, Variable Costs $1.50.	200 units
24. What profit will the company make if they sell 344 units of product given the following data: Fixed Costs $2700, Price $15, Variable Costs $1.50.	$1,944
25. What profit will the company make if they sell 2230 units of product given the following data: Fixed Costs $4000, Price $10, Variable Costs $6.	$4,920
26. What is the total cost using the following data: Quantity 150 units, Variable cost per unit $5 and Fixed costs $2000?	$2,750
27. What is the average (unit) cost for a product with these costs: Fixed Costs $1750, Variable Costs $3 at an output level of 2000 units?	$3.875
28. What is the contribution per unit? Fixed costs $2000, Variable Cost $5 and Price $8.	$3 per unit
29. Calculate the total contribution given the following data: Fixed Costs $1500, Variable Costs $1.50, Price $4.00 and Quantity 2500.	$6,250
30. Calculate the breakeven point using the following data: Fixed Costs $3500, Variable Costs $2.75 and Price $6.	1,077
31. How much does breakeven point improve/worsen if price increases by 15%? Original data: Fixed costs $3,500, Variable cost $2.50 and Price $6.00.	Worsens by 204 units
32. How much profit/loss is created from the following data? Quantity 2,500, Fixed Costs $15000, Price $35, and Variable Costs $20.	$22,500
33. What is the price per unit if the business produces $50,000 in total revenue from sales of 20000 units?	$2.5
34. How much profit is made if breakeven point is 3500 units, contribution per unit is $4 and the actual level of output is 4150 units?	$2,600
35. What is the margin of safety if breakeven point is 2700 units and actual output is 2835 units?	135 units
36. Calculate breakeven point. Fixed costs $6000, Price $4 and Variable cost $1.75.	2,667 units

 

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