Business Marketing and Computer Education
Product-based, Web-enhanced Instructional Plan

Instructor: Elizabeth McClendon

Lesson Title: Cost of Goods Sold Computation and Analysis

Grade Level: Grade 11

Time Frame: 46 minutes

Illinois State Goal 15:

Understand economic systems, with an emphasis on the United States.

Illinois Learning Standard: 15.D.5a

Explain how transaction costs affect decisions to produce or consume.

Learning Activity

Students should analyze and calculate the Cost of Goods Sold (COGS) for a selected food item.

Products:

Cost of Goods Sold Analysis List

Student Materials and Resources:

Computer with Interent Access
Pen
Pencil
Paper
Calculator
Conversion Chart/ Metric Table

Teacher Materials, Resources and References:

Web-based Resources

Mariotti, Steve How to Start and Operate a Small Business National Foundation for Teaching Entrepreneurship @2001

LCD Projector with White Board or Projection Screen
or Chalk and Chalkboard

Activity Plan

Time Frame	Teacher Will	Student Will
*Initial Activity or Bell Ringer*
7 Minutes	Distribute handout on Cost of Goods Sold Information Sheet Handout/Visual 1 that calls attention to the concept of COGS for businesses. To download Microsoft Word document. 1. Right click on the link below. 2. Select “Save target as” to save the document to your computer. 3. In the “Save as” window, change the file name if you want, choose where you would like to save the document and click “Save”. Cost of Goods Information Sheet	Read and answer the questions on the given handout.
*Lesson Activities*
15 Minutes	1. Web-Enhanced--Teachers with access to the Internet and a computer and an LCD projector visit the following website to retrieve the list of ingredients to make a turkey sandwich. (If computers are available to all students, they should be encouraged to access the recipe at http://www.ndturkey.org/recipes%20pages/sandwich-wraps/recipe4.htm). Non Web Enhanced, Option 1: Using a transparency for Handout/Visual 2 and an overhead projector, discuss ingredients for the sandwich and its appropriate portions. Non-Web-Enhanced, Option 2: The teacher may distribute a copy of Handout/Visual 2* or list the ingredients on a whiteboard or chalkboard.* To download Microsoft Word document. 1. Right click on the link below. 2. Select “Save target as” to save the document to your computer. 3. In the “Save as” window, change the file name if you want, choose where you would like to save the document and click “Save”. Handout/Visual 2 - Turkey Wrap	1. Follow instructions for visiting the following Web site: http://www.ndturkey.org/recipes%20pages/sandwich-wraps/recipe4.htm
	2. Discuss the ingredients in a turkey sandwich. Present Visual 3, which contains a step-by-step analysis of the cost of each ingredient in the sandwich. Explain price conversions and reasons for any estimates for cost of for ingredients. Special attention should be given to how students should account for fixed expenses such as labor, utilities, and rent. To download Microsoft Word document. 1. Right click on the link below. 2. Select “Save target as” to save the document to your computer. 3. In the “Save as” window, change the file name if you want, choose where you would like to save the document and click “Save”. Visual 3 - Ingredients Cogs Analysis	2. Listen and take notes on how to compute COGS for a turkey sandwich.
Time Remaining	Refer students to http://www.geocities.com/vbusinesslesson/cogs.html. This site contains directions for how to calculate COGS for a turkey sandwich. Non-Web Enhanced Option—Capture the Web site page and present it to students in the form of a handout or on the overhead projector.	Follow the directions given on the website http://www.geocities.com/vbusinesslesson/cogs.html to prepare a COGS for a Food Item that will be sold in a restaurant.
	Direct students to follow the directions carefully either at the site or on the overhead slide or handout. The directions ask students to select a food item that they will prepare. Examples of possible approved foods would be: Cakes, Pies, Cookies, Brownies, Milkshake, Floats, Sundaes, Sandwiches. The teacher will approve only food items that can easily be served in a restaurant as one unit or sold by the pound or similar quantities. The teacher should discourage students from choosing complex items (i.e. entrees with multiple items and complex items such as fried rice.) These foods may contain too many ingredients and may interfere with correct calculation and analysis of COGS. Direct students to add a fictitious percent (.01%) of the total cost of the food item for fixed expense Explain and ensure that students understand the concept of Keystonning, or doubling the COGS price to determined suggested sales price.	Follow all directions carefully, which include the following: Choose a food item to cost out. Have the teacher approve the food item. Select a recipe from foodnetwork.com or askjeeves.com Visit peapod.com to determine prices of food items. List all ingredients and their price computations on a piece of paper (in the same format as *Handout/Visual 3*). Determine a total price. Add .01% of total cost of item as fixed expenses. The instructor will provide the percentage that students should add. Keystone or doubling the total COGS price to determine suggested retail sales price.

Remedial Activities:

Coach individual or group students who appear to be having difficulty with the assignment.

Supplemental Activities:

Have student convert weight and measurements to metrics.

Have students get in groups to discuss how they would cut cost on a particular menu item.

Assessment Rubric

Product: Cost of Goods Sold Analysis

Teacher will rate student’s work according to the following scale:

*Grade Scale*	A	B	C	D	F
Selection of all food items based on ingredients in recipe	Correctly selected all food items	Correctly selected at least 80% of items	Correctly selected at least 70% of items	Correctly selected at least 60% of the items	Correctly selected less than 60% of items
Determination of food price for all food items	Correctly determined all food prices.	Correctly determined at least 80% of prices	Correctly determined at least 70% of prices	Correctly determined at least 60% of the prices	Correctly determined less than 60% of prices
Computation of price for food item unit	Correctly computed price for food item unit.	Computed price with 80% accuracy	Computed price with 70% of accuracy	Computed price with 60% accuracy	Computed price with less than 60% accuracy
Calculation of fixed expenses percentage	Correctly computed fixed expense percentage	Computed fixed expense percentage with 80% accuracy	Computed fixed expense percentage e with 70% of accuracy	Computed fixed expense percentage with 60% accuracy	Computed fixed expense percentage with less than 60% accuracy
Calculation of Keystonning price.	Correctly computed suggested retail sales price	Computed suggested retail sales price with 80% accuracy	Computed suggested retail sales price with 70% of accuracy	Computed suggested retail sales price with 60% accuracy	Computed suggested retail sales price with less than 60% accuracy
Formatting list according to directions (Handout Visual 3)	All items formatted appropriately	Only one formatting error.	Two to three formatting errors.	Only a few items were formatted appropriately	No items were appropriately formatted

Visual 4 - Cost of Goods Sold Evaluation

To download Microsoft Word document.

1. Right click on the link below.

2. Select “Save target as” to save the document to your computer.

3. In the “Save as” window, change the file name if you want, choose where you would like to save the document and click “Save”.

Cost of Goods Sold Evaluation Cost of Goods Sold Analysis Rubric

Business Marketing and Computer Education Product-based, Web-enhanced Instructional Plan