1. Value For Money
OCR Stage 7

2. What is it?
We use Value for Money when deciding which of TWO [or more] choices of what to buy
For example
750g of Corn Flakes for £2.25
250g of Corn Flakes for £0.80

3. How to decide on Corn Flakes
This is a simple case
The 750g pack is 3 x 250g
3 x 250g = 3 x £0.80
£2.40
A 750g pack only costs £2.25
Best Value for Money is the 750g pack
Get same amount for LESS cost

4. Other Methods But most questions are not that simple
Need another method
There are actually 2 ways to compare prices and Value for Money

5. #1 Price Per Unit 250g Pack £0.80 750g Pack £2.25 0.8 250 2.25 750
In the Cornflakes example, we can compare price per gram
250g Pack £0.80
750g Pack £2.25
0.8
250
2.25
750
= £0.0032
= £0.003
per gram
per gram
Best Value is LOWEST cost per gram

6. #2 Units per pence [or £] 250g Pack £0.80 750g Pack £2.25 250 0.8 750
In the Cornflakes example, we can compare UNITS per £
250g Pack £0.80
750g Pack £2.25
250
0.8
750
2.25
= 312g
= 333.3…g
per £
per £
Best Value is HIGHEST quantity per £