Lesson 2 Money Smart
Sweet Success: Lemonade Stand Economics
High school is not only where we study different subjects but also where we ____ about life.
We are a group of students that get together every week to ____ ways to make a difference in our society.
In this newsletter, I would like to share the ____ of how we participated in our community’s international food festival.
On top of raising enough money to make a donation, we learned a lot about how to ____ and carry out a business plan.
Here is our ____.
1 Setting Up Our Plans
Choosing What to ____:
The first step we took was to ____ what to sell.
Some of the ideas that we discussed included ____ candy, corn dogs, and lemonade.
Out of these options, we agreed that a lemonade ____ would be the easiest for us, as we would need only a good recipe and a few ingredients.
We also ____ out that no other stand had signed up to sell drinks, so lemonade seemed to be the natural choice.
Finding the ____ Recipe:
Once we decided on lemonade, we needed the perfect ____.
Fortunately, we were able to find a simple ____ online.
We just needed ____ squeezed lemons, sugar, water, and ice.
After ____ out different variations of the recipe on friends and family, we decided on the final recipe.
It would make ____ 1.5 liters of lemonade, which could be sold as five cups.
Our Lemonade ____
Boil the sugar and 1 cup of water ____. Set it aside to cool.
____ the lemons to make 1 cup of fresh lemon juice.
Blend the lemon juice with 3 cups of water. Then add the ____ from Step 1.
Serve the ____ over ice. Add some lemon slices for decoration.
2 Pricing
The main goal of setting up the ____ stand was to make enough profit for a donation to the local children’s home.
To maximize our profit, we ____ to decrease our costs and increase our revenue.
Profit: The money that you make in business when revenue exceeds ____
Revenue: The money ____ by the business
Costs: The ____ spent by the business
Since we wanted to minimize costs, our first step was to find the most ____ ingredients and cups available.
As we were researching prices, we found that buying ingredients and ____ in bulk would be the smartest way to go.
The chart below shows how much we ____ save by buying in bulk.
Now that we had found ____ how to minimize costs, we needed to decide on a reasonable price for a cup of lemonade.
We contacted a festival organizer to gather ____.
First, we inquired about the previous year’s drink prices, and she told us that soft ____ had been sold for $1.50 per cup.
Considering that freshly squeezed lemonade usually costs more, we ____ to sell each cup for $2.
Based on our recipe and the costs of the ingredients and ____, each cup of lemonade would cost us about $0.70 to make.
With a selling price of $2, we expected a ____ of $1.30 per cup.
Regarding attendance, we learned that the festival organizers were expecting around 400 people for each of the two ____ of the festival.
We thought we could reasonably sell lemonade to half of the people ____, so we aimed to sell 400 cups over the two days.
If we could do that, our revenue would amount to $____!
However, this revenue ____ be pure profit.
We needed to subtract our ____ from it.
In addition to the cost of $____ required to make 400 cups, we also had to factor in the $6 we needed for posters and fliers.
If we reached our goal, we would be able to make $514 in ____.
That ____ be a big donation!
3 Marketing
Location-Based ____:
When the organizer asked us where we wanted our stand, we ____ that location was going to be important.
She sent us a map showing which foods were going to be sold at which stands, and we chose an opening between the tteokbokki and ____ kebab stands.
____ could resist a cool, sweet lemonade after some spicy and salty food?
Our ____ Strategies:
Developing marketing strategies to attract more ____ was the most enjoyable part.
In addition to designing posters and fliers, we also ____ various online marketing techniques.
One of our club members suggested we ____ customers free refills for mentioning our stand on their social media accounts.
We all agreed that was a great ____ to spread the word.
We also planned to install a photo zone and give coupons for a 10% discount to customers who posted photos they took there with the ____ “#sweetsuccess,” the name of our stand.
Mission ____! Our lemonade stand was a huge success!
____ of the hot weather, we ended up purchasing extra bags of ice.
We also had to give free refills and discounts to some customers, which we did as ____ of our marketing strategy.
Even with these extra costs, however, we were still able to make a profit of $____.
Even though we couldn’t reach our profit goal, we were ____ that we were able to make a big donation to the children’s home.
We also ____ a valuable lesson in economics, a lesson we never could have learned in the classroom!