Profits

One afternoon in the summer you want to go into business selling popsicles to hot people that need something cold down their throats. It could be a fun project and a way to spend your hot summer days, but you probably would want to make some money. Another word for money that you make by running a business selling something is profits.

To start your business there are some things you probably want to find out first.

Question 1: About how much do you want to charge for a popsicle?

Answer: You should compare prices of a popsicle that you've seen before, maybe in a concession stand or any other place. This will help you come up with an approximate profit you will make and make it easier to make a business budget.

Question 2: Can you just make up any price?  

Answer: No. If you've seen things like little stands in your neighborhood and on the corner of a street they probably have sold their lemonade or Popsicles for at least ten cents. Also you probably want a profit so you again need to look at the cost of your materials. If you had a big business you can get an accountant to do the work for you.

Vocabulary    

profit-the money you make by selling a product

business budget- a budget used in a job or business that manages money that the business has spent

materials-what you use to complete a task

accountant-a person you can go to to help you come up with a good price to sell your product and have a profit