1. LO: To explain the impact of price change on sales revenue

2. In your books, unscramble these words to make words associated with finance:  Inecfan  Stsoc  Elass  Pierc  Reueenv  Troerunv ◦ ALL – 4 ◦ Most – 5 ◦ Some - 6

3.  DEF: Is the money a business receives for selling goods or services  Also known as Sales Turnover  Formula: ◦ Sales revenue = No. Sold x Selling price

4. Cushions plc makes 20,000 cushions a month and sells these at an average price of £17. They are in a competitive market. 1. Calculate Cushion plc’s monthly sales revenue. 2. Calculate Cushion plc’s annual sales revenue. 3. Evaluate the impact on Cushion plc’s revenue of a major competitor reducing their price to £15 per cushion. How could Cushion plc respond to this?

5.  A business may be able to increase its revenue by either: ◦ Changing the price it charges – either raising the price or reducing the price ◦ Increasing the amount it sells TASK: PLEASE TURN TO PAGE 269 and complete activities 1 and 2 (EXT: part b)

6.  When a business changes the price of a product the effect on the amount bought could be large or small.  Inelastic demand – Demand is inelastic when a percentage change in prices leads to a small percentage change in quantity demanded, I.e if a business reduces its prices by 10% and demand only rises by 5% then demand is inelastic.  Elastic demand – Demand is elastic when a percentage change in price leads to a greater percentage change in quantity demanded, I.e if a business reduces its price by 10% and the quantity demanded increases by 20% demand is elastic.  EXT: Can you describe PED?

7.  The price of petrol increase by 10%, explain the effect this has on levels of demand.  The price of Relentless energy drink increases by 40%, explain the effect this has on levels of demand.  Ext: Can you identify if the products above are elastic or inelastic?

8. When a business wants to raise or lower prices, in order to increase its sales revenue, it needs to judge what will happen to the amount it will sell:  TASK 2: Draw a thought shower of factors that could affect sales

9. No. Of Competitors What competitors do Necessity product How much people spent on the product Fashions

10.  A shopkeeper raised his price of matches from 10p – 12p  A supermarket reduced their bread by 20% and competitors left theirs unchanged  Mr Snips runs the only male hairdressers in Clipton and his nearest competitor is 8 miles away. He raises his price by 50p  The busy bee bus company raises its price by 15%, its competitors raise theirs by 8%