Gold Seal Lesson:
Break-Even Point

Copernicus Education Gateway

Subject:

Mathematics

Grade:

9-12

ICLE Standards:

Statistics:  Collect, organize, analyze, and interpret data.

Reasoning:  Apply the mathematical principles of break-even to a real-world situation.

Economics:   Relate break-even to a corporation's profitability.

Performance Task:

You will determine the break-even point for a corporation as it pertains to the sale of a $1 Happy Sac. For this project, a Happy Sac consists of a stocking-shaped container constructed from fabric and filled with assorted candies.

Please follow these directions:

1. Determine the lowest cost per unit for each stocking container using the following information:

• The fabric measures 36" x 44" and costs $3.50

• It requires two stocking pieces to create the container.

• Record your findings on your data sheet.

2. Using the candy list shown below, determine the cost per unit for each type of candy (round to 3 decimal places).

3. Create a Happy Sac. Each Sac must contain at least 6 varieties of candies from the list in Step 2. 

4. Determine the cost of your Happy Sac.

• Sac Cost = Candy cost + Stocking cost

5. Record information on your data sheet.

6. Calculate the BREAK EVEN POINT.

• Profit per Happy Sac = $1.00 - Sac Cost

• (This must be a positive number-if not repeat step 3)

• Fixed costs for your company are $125. (This includes salaries, wages, commissions, charter, and advertising.)

• BREAK EVEN = Fixed Costs ¸ Profit Per Sac

Knowledge / Skills:

Perform operations with signed (positive and negative) numbers, including decimals, ratios, percents, and fractions. M.1

Understand the best procedures for statistical data collection, organization, and display. M.5

Plan and apply real or hypothetical models and constructions to facilitate investigation and learning and the solution to practical problems. 115

Follow written directions carefully and accurately. ELA.6

Rubric:

4 POINTS: 

• Determined the most cost-effective way to cut stocking pieces to produce the greatest number of sacs per yard.

• Accurately calculated cost per unit of candies listed.

• Created a Happy Sac with at least 6 varieties of candies with total cost less than $1.

• Accurately calculated BREAK EVEN POINT.

• Presented a logical defense of the product.

3 POINTS: 

• Determined a cost-effective way -not the most cost-effective way--to cut stocking pieces to produce the greatest number of sacs per yard.

• Accurately calculated cost per unit of candies listed.

• Created a Happy Sac with at least 6 varieties of candies with total cost less than $1.

• Accurately calculated BREAK EVEN POINT.

• Presented a logical defense of the product.

2 POINTS: 

• Determined a cost-effective way -not the most cost-effective way--to cut stocking pieces to produce the greatest number of sacs per yard.

• Calculated cost per unit of candies listed with some errors.

• Created a Happy Sac with at least 6 varieties of candies with total cost less than $1.

• Did not accurately calculate BREAK EVEN POINT.

• Presented a logical defense of the product

1 POINT: 

• Determined a cost-effective way -not the most cost-effective way--to cut stocking pieces to produce the greatest number of sacs per yard.

• Calculated cost per unit of candies listed with some errors.

• Created a Happy Sac with less than 6 varieties of candies with total cost less than $1.

• Did not accurately calculate BREAK EVEN POINT.

• Did not make a presentation.

Keywords:

STATISTICS
DATA COLLECTION
INFERENCE
PROBLEM SOLVING
COMPUTATION
MODELS AND CONSTRUCTION
DIRECTIONS

Grades:

Kg [] - 1 [] - 2 [] - 3 [] - 4 [] - 5 [] - 6 [] - 7 [] - 8 [] - 9 [x] - 10 [x] - 11 [x] - 12 [x]

ICLE Application:

D

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