Spreadsheet: Concession Stand

(Pay close attention as to whether or not to clear data before advancing to the next
question)
Scenario 1
Your math class has been selected as financial advisors for the concession stand at
basketball games. Use the spreadsheet ConcessionStand to answer the following
questions:
1. If you purchase 50 chips and 40 drinks and use 50 napkins, what will the cost be?
2. You have purchased 50 hotdogs and buns, 100 napkins, 50 mustard, 50 ketchup, 40
relish, 30 chips, 30 cookies, 30 brownies, and 100 drinks. What is your cost? (Do
not clear your data before moving on to question 3)
3. If you sell 45 hot dogs, 26 brownies, 10 cookies, 28 bags of chips, and 84 drinks
what will be your total sales? (Do not remove your data before moving on to
question 4)
4. Use the costs from question 2 and the sales from question 3. What is the total profit
from your sales? (Do not remove your data before moving on to question 5)
5. Look at the data from questions 2-4. Are there any items that did not profit? If so,
which item(s) and how much money was lost? (Do not remove your data before
moving on to question 6)
6. If your cost for hotdog and bun increased to $0.55 what would be your new profit
from hotdog sales? (clear all of your data and return hotdog and bun price to $0.22
before going on to question 7)
Scenario 2
STLP has been asked to assist in providing financial advice for the band boosters who
are running the concession stand to increase profits from sales. Using the spreadsheet
ConcessionStand answer the following questions:
7. Would it be more profitable to sell 120/120 drinks at the current price or to only sell
90/120 drinks at an increased price of $0.75? (Clear data and return drinks price to
$0.50 before going on to question 8)
8. Which would be more profitable: 356/360 hotdogs sold at $1.00 or 250/360 hotdogs
sold at $1.50? (Clear data and return hotdog price to $1.00 before going on to
question 8)
9. Replace the Cookie under Profit with Combo change the Sale Price of
Combo to $2.00. A Combo includes 1 hotdog, 1 chips, 1 brownie, and 1
drink. You purchased enough products to make exactly 18 combos. What would be
the profit of 18 combos sold? (Do not clear your results before advancing to
question 10)

10. What would be the profit of 220 Combos sold out of a possible 250 plus 30
individual hotdogs, 30 bags of chips, 30 brownies, and 30 drinks?
Higher Level Thinking Questions
11.Would you advise for or against increased hotdog prices that resulted in decreased
sales if it resulted in an increased profit? Why or why not? What might this mean for
the sales of your other products? Evaluate the effect that higher prices of individual
items may have on the percentage of items sold. Evaluate how this is or is not
balanced out by the increased profits.
12. Remove the item that you think would be the least popular and replace it with a
different item. Explain why you made this selection. Provide the cost to buy the
product and the price to sell the product.

ConcessionStand (spreadsheet) Answer Key

Scenario 1
1. $50.80
2. $56.60
3. $116.50
4. $59.90
5. Yes, Cookie, -$1.10
6. $17.50
Scenario 2
7. 120/120(at $0.50)=$33.60 90/120(at $0.75)=$41.10: 90/120 was most profitable.
8. 356/360=$276.80 250/360=$295.80: 250/360 was most profitable
9. $25.20
10. $310.00
Higher order thinking questions:
11.Example answer: There are many things to consider when increasing prices. If I lose
customers over one product, those customers may not be there to purchase the other
products. I would not want to increase prices to the point that I would lose
customers. However, if I find that I am routinely selling out of my stock, it would be
worth considering gradually increasing the price. I might have an indication that my
prices are too high. The key is to find the right profit margin and try to implement
this margin when pricing your other products as well. No one product should be so
overpriced as to negatively effect the sale of other products.
12.Example answer: The item that I found least popular was cookies. One reason that I
believe our cookies did not sell as well as some of our other items is the fact that we
have a better option for dessert in our Brownies. More people buy the brownies. A
better option to offer may be candy. We do not have candy at this time and because
of this, it should sell well. The cost to buy the candy is similar to the Brownie.
Candy costs $0.22 for 1 unit. I would sell the candy at the same mark up as the
Brownies. I would sell the candy at $0.50 a unit. This way we would have a similar
profit margin as the cookies had, but we will increase the percentage of the items
sold.