### Before You Begin

Groups of 3–5 students work best for this activity. Depending on
your class, you may want to make groups ahead of time or you may have
students choose their own groups. Arrange the student desks so your
room is conducive to group work. Create 8 sections in your room that
will be used as store locations in the final phase of the product. Make
Section 1 the most desirable because it has the highest rent (of $500),
while Section 8 is least desirable (at $50). Here are some examples of
areas you may want to consider:

**Section** | **Cost** | **Description** |

Section 1 | $500 | Includes large table and two chairs, with wall behind it for posting signs/advertisements |

Section 2 | $375 | Back of the room wall area with 2 student desks with 2 chairs & wall space for posting signs/advertisements |

Section 3 | $325 | Counter area with wall space for posting signs/advertisements |

Section 4 | $300 | Circular table with 4 chairs and no wall space |

Section 5 | $225 | Group of 4–5 student desks with chairs and no wall space, closest to front door |

Section 6 | $205 | Group of 4–5 student desks with chairs and no wall space, middle of the room |

Section 7 | $150 | One student desk and chair- where there is room (in corner of room farthest from door) |

Section 8 | $50 | Floor in back of room (5'×5' space) (no desks or chairs or walls) |

### Starting the Lesson

Introduce the premise of the project. Tell students they will be
working in small groups to develop a business that sells one product of
their choosing. Explain that as a class, they will be brainstorming a
list of 10 possible products. Give students some examples of products
such as: mp3 players, pencils, etc. Each group will be given $1,000
play money to buy the product of their choosing to sell, to rent a
location in the room to set up their store, and to advertise. Once the
businesses are completely set up, each student will be given a $200
debit card that they will use to spend at businesses other than their
own. Lastly, any money that is left over on the debit cards will be
collected and divided evenly among all the groups.

Have students break into groups and come up with 3–5 product
choices. Allow students time to choose their choices using the
following criteria:

- Products must be specific. Instead of general board games, Twister or Monopoly would be more appropriate.
- Products can be original (not made yet) but should be
realistic (a magical genie who grants wishes unfortunately isn't an
option to sell).
- Products should appeal to both genders.
- Products shouldn't be too expensive (remember students only have
$200 to spend in the end; therefore, students shouldn't be selling
Lamborghinis as their products).

Give students 5–10 minutes to brainstorm possible products. Have one
representative from each group put their group's ideas on the board.
Tell the class that you have the authority to erase any options that are duplicates of other ideas, too general, too
expensive, or inappropriate for school. If you are left with a list
that is greater than 10 products at this point, have students vote on
the remaining products by allowing each students to vote for their two
favorite products. Have students determine how many votes there should
be in total [If there are 20 students in your class there should be a
total of 40 votes tallied, because 2 × 20 = 40].

Once students have narrowed the list down to 10 products, it is a
good idea to organize the products from cheapest to produce to most
expensive to produce. For example, a pencil would be cheaper than an
mp3 player. This will help students during the wholesale pricing
process. Lead this activity in the beginning, and then, let students
organize the rest of the products. Choose a student to rewrite the list
on the board and call on other students who are raising their hands for
ideas.

After you have organized the product list, hand out the Money Maker Activity Sheet. Have students write down the list of 10 products you
created as a class. To develop wholesale prices, have students research
the current retail value of each product, and assume that the wholesale
price is 30% of the retail value. Have students calculate the wholesale
prices by multiplying the retail price by 0.30; if you have not taught
multiplication with decimals you will want to have students use
calculators.

Money Maker Activity Sheet

Give students time to work in groups and choose the product they
want to use. Have students complete question two on the Money Maker Activity Sheet.

Have a representative from each group explain to
the class which product they will be selling and why they think it will
be a successful product to sell.

### Students Choose Their Business Locations

After you have explained to students that part of their budget
includes renting a location for their business, share the eight
sections you have designated to be auctioned off. Allow students to
conference with their groups about what section they want the most and
how much more than the starting bid they are willing to pay. Give each
group a different number card. Have each group designate one student
who will hold up their group's number card to bid on a price stated by
the auctioneer.

Start the auction with the most expensive location (or you can start
with the section generating the most interest in students). For the
most expensive location an example of what you could say is: "Bids
start at $400, do I hear $400? $400 to Group 1. Do I hear $410? $410 to
Group 2. Do I hear $420? $420 going once, twice, sold to Group 2 for
$410." Be sure to write down the selling price and group number once
each auction has concluded.

### Students Create their Advertising Budget & Price their Products

On page three of the Money Maker Activity Sheet, students will work
on their budgets which include buying their products from vendors and
advertising their products. After students have determined how many
products they want to order to sell in their stores, they will
determine how much money they have left for advertising. The following
items will be available for purchase (see page three of the Money Maker
activity sheet):

- 8.5"×11" piece of lined paper: $25
- 8.5"×11" piece of white paper: $50
- 8.5"×11" piece of colored paper: $60
- 1 piece of poster board: $150
- Marker, 1 color: $10
- Markers, 3 colors $25
- 12" of tape (for hanging posters): $5
- 15 seconds of commercial time: $100
- 30 seconds of commercial time: $190

Students will prepare their budget and turn it in one from each
group to be checked. Once the budget has been approved, the advertising
items will be delivered to each group.

Once students have received their advertising materials, they should
begin to work on creating enticing advertisements to promote their
products. When you see students are finishing up their advertising,
announce when the commercials will be shown for groups who bought
commercial time. If your school has video equipment available, students
may actually tape their commercials; otherwise, students can act out
their commercials in class.

At this point in the project, groups should be able to work
independently. You can either devote an entire class period to this
process, or you can follow your regular curriculum and allow students
to work with their group members during any "free time" students may
have, such as following a lesson or after a test, and so on. The second
lesson in this unit, Savvy Sellers and Spenders, provides closure for
the project; students sell their products, and practice addition and
subtracting with decimals. In addition, students continue their math
learning by becoming consumers with $200 to spend at the different
stores.

If you decide not to use the Savvy Sellers and Spenders lesson,
provide closure by having students use the prices they brainstormed on
the activity sheet in questions twelve and fourteen and answer the
following questions:

- If you sold your products at the price you listed in question
twelve, how many products would you need to sell to break even? (Keep
in mind the money you spend on buying products, real estate and
advertising.) How many products would you need to sell to make a profit?
- If you sold your products at your "special price" in question
fourteen, how many products would you need to sell to break even? How
many products would you need to sell to make a profit?
- After answering questions one and two, would you keep the amount of products you ordered the same or change it? Why?