Participants: Teams made of 2-4 people
Time needed: An hour and a half or more
Divide the students into groups. Each group is a company. There are five types of companies: Construction, Real Estate, Labor, Materials, and Equipment. For large classes construction companies have 4 students to a group. All other companies have two to a group. Take a few minutes before class to do the math and ensure that there will be enough of each group type to supply each resource that the construction company needs. Alternately you can limit the amount of one or more resource to increase competition which could lead to a follow up discussion of supply and demand.
Teachers explain how to calculate profit/loss as many students may not realize that they have to figure in monthly expenses to their selling prices.
You have €1,000,000. You must build a building in 4 weeks starting tomorrow.
To build a building you need: 1 parcel of land 10,000 pounds of raw materials 10 construction vehicles for 2 weeks 1000 man-hours of labor.
Real Estate Company:
Try to earn a profit by selling land to the construction companies. Each parcel of land costs you €100,000. Sell for a higher price. You have monthly expenses of €100,000.
Calculate your profit like this: total sales- cost of land- monthly expenses= profit
Earn money by renting construction vehicles to the construction companies. You have 20 vehicles. A vehicle can only be rented by one company at a time.
For example: for the first 2 weeks you rent 10 vehicles to company X and 10 vehicles to company Y. You have no vehicles left to rent to company Z during this time, but you can rent to them for the second two weeks.
You have monthly expenses of €355,000.
Calculate your profit like this: total money from rentals – monthly expenses= profit
Earn money by selling raw materials to the construction companies. Each penny of raw materials costs you €10. Sell for a higher price.
You have monthly expenses of €40,000
Calculate your profit like this: total sales- cost of raw materials- monthly expenses= profit
Earn a profit by contracting out laborers to the construction companies. You have 20 laborers in your company. Each laborer can only work 8 hours per day. Each laborer must be paid a wage of €20 per hour of work. Charge the construction companies a higher rate. You have monthly expenses of €25,000.
Calculate your profit like this: Total money received- workers’ wages- monthly expenses= profit
Prepared by students from Turkey HOV ALEMDAG TUNC CAPA ANADOLU LISESI