The Lemonade Stall — Money Square · Investopia
Starting a small business is a great way to learn: costs, price, customers and profit. Imagine you spend 6 LC on lemons, sugar and cups and make 12 cups.
Starting a small business is a great way to learn: costs, price, customers and profit.
The Story
Imagine you spend 6 LC on lemons, sugar and cups and make 12 cups. Each cup costs you 0.50 LC to make. If you sell each for 1 LC and sell them all, you get 12 LC, so your profit is 6 LC.
An entrepreneur thinks about questions like: who are my customers? How much will they pay? What will I do if it rains? If cups are left over, profit goes down. Many big companies started small, but most businesses have to test and adjust many times.
Key Ideas
- Costs: What you spend to make the product: lemons, sugar, cups.
- Price: How much you charge for each cup.
- Revenue: All the money you get from selling things.
- Profit: Revenue minus costs. If negative, it’s a loss.
Step by Step
- List the ingredients and how much they cost.
- Divide the cost by the number of cups.
- Pick a price higher than the cost of each cup.
- Count how many cups you sell.
- Work out the profit: revenue minus costs.
Your Turn
With an adult, make lemonade for your family and act as if it’s a stall: write down costs, price and how many cups you 'sold'.
Educational simulation with fictional LeoCoins. Not financial advice and no buy or sell recommendations. Companies in the game are invented. Real money decisions are for adults — talk to a trusted adult.
Keep exploring
Other languages
Loading MyLeoNes™…
