1. Mr C & Mr F’s Crazy World Cup Conundrums! FUN TASK designed to bring in / tie together ALL the topics we’ve been doing these past couple of weeks! BREAK-EVEN COSTS (START-UP & RUNNING) PROFITS LOSS REVENUE / TURNOVER
2. Mr C & Mr F’s Crazy World Cup Conundrums! England v Algeria 7:30pm BBC Green Point Stadium Cape Town South Africa TONIGHT! How many Vuvuzelas will need to be sold by Andre Preneur (Stadium Owner ) to cover the cost of hosting the big match tonight? Cost of hosting match £2 Million (Mr Williams News Research!) Cost of making Vuvuzela 50p each Vuvuzela sells for £5 each Does Vuvuzela revenue cover costs (assuming everyone buys one)? Does Andre cover the costs? How big would the stadium have to be to break even using vuvuzela revenue?
3. Mr C & Mr F’s Crazy World Cup Conundrums! England v Algeria 7:30pm BBC Green Point Stadium Cape Town South Africa TONIGHT! What about other sources of REVENUE? Name 5! (SPACE TO RECORD REVENUE SOURCES AND RELEVANT COSTS AND SELLING PRICES) Now does Andre cover costs? (Don’t forget income from the Vuvuzelas!) Does he make a PROFIT or a LOSS? Can you now define COSTS, REVENUE, PROFIT AND LOSS?
4. Mr C & Mr F’s Crazy World Cup Conundrums! Adidas are the official suppliers of the World Cup Ball – “Jabulani” When Adidas were approached by FIFA to make 800 Footballs for the World Cup, they had to come up with some financial figures (based on 2 months work) – 3 Designers Wages - £300,000 Factory Premises Germany - £2.2M Workers (10) Wages - £200,000 Materials - £80,000 Heating - £200,000 Lighting - £10,000 Electricity - £500,000 Water - £30,000 Canteen Facilities - £20,000 What are the TOTAL COSTS? Which are START-UP and which are RUNNING COSTS?
5. Mr C & Mr F’s Crazy World Cup Conundrums! Adidas reckon they could make some money from “Jabulani” sales worldwide! When do they break-even according to the figures and formula below.. Rent for Factory - £2M Tax - £5M Insurance - £1M Heating, Lighting, Electric etc - £2M Workers Wages per ball - £10 Materials per ball - £3 Each ball retails (sells) for £80 Break Even Formula – FC / (SP-VC) What is the Break even point? How many balls will need to be sold?
6. Mr C & Mr F’s Crazy World Cup Conundrums! ONE LAST CHECK: What are COSTS? FIXED COSTS? VARIABLE COSTS? START-UP COSTS? RUNNING COSTS? What is PROFIT? LOSS? REVENUE? SELLING PRICE? BREAK-EVEN? WHO ELSE IS MAKING MONEY FROM THE WORLD CUP?
7. Mr C & Mr F’s Crazy World Cup Conundrums! REWARD TIME WORLD CUP MATCH or INTERNET TIME