Modelling and Presenting Numeric Data Year 8 WBGS Models in Business

Models and Simulations A model represents a real thing. A simulation is where you see the model behaving when you alter the variables.

Using Goal Seek Goal seek,Goal seek, Target ValueTarget Value Works out the VariablesWorks out the Variables

Using a Model in a Business Calculating Costs –Total Costs = Fixed Costs + Variable Costs Break Even Point –Where costs and income are the same –No Profit and No Loss Why use the Model? –Simulate What If situations –Work out Profit and Loss

Our Business Model Coffee Shop Fixed CostsFixed Costs Variable CostsVariable Costs Work out Break Even PointWork out Break Even Point How many cups need to sell (Revenue)How many cups need to sell (Revenue)