Financial Viability Basics

Overview

This 60-minute lesson focuses on helping Year 10 students understand the concept of financial viability in the context of their Market Day food stall business project. It explores how variable costs per unit affect viability and introduces basic financial calculations, supporting students to apply mathematics and business knowledge in an authentic, student-centred inquiry.

Curriculum Alignment

New Zealand Curriculum Links

• Business Studies (NZC Level 5-6)
  • Understanding the economic and financial context of a business activity.
  • Investigating how costs impact decision-making and viability.
• Mathematics and Statistics (Te Mātaiaho Maths, Years 9-10)
  • Financial Mathematics: calculating costs, profit, and percentage.
  • Operations with decimals and fractions; proportional reasoning.
  • Forming and solving simple linear equations related to business contexts.
• Key Competencies developed:
  • Thinking: problem-solving and financial reasoning.
  • Managing self: planning and managing time and resources.
  • Participating and contributing: collaborating in setting up a business.

Specific Learning Objectives

By the end of the lesson, students will be able to:

• Define financial viability in the context of a small food stall business.
• Calculate variable cost per unit for their recipes.
• Understand how variable costs impact pricing and profit.
• Apply proportional reasoning to scale costs with quantities.
• Use basic algebraic expressions to represent financial relationships (optional extension).

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Lesson Plan Details

Time	Activity	Description	Resources
0 – 10 min	Introduction & Context	- Recap Market Day project (food stall, recipes, names). - Introduce "financial viability": can the business make money after covering costs? - Discuss fixed vs variable costs: focus on variable costs per unit for ingredients and packaging.	Whiteboard, projector/slides, student business briefs
10 – 25 min	Exploring Variable Costs	- Students list ingredients and packaging for their recipes. - Teacher models how to calculate variable cost per unit (ingredient cost × quantity used per item). - Students calculate their own itemised variable costs. - Discuss cost factors like portion sizes, waste, buying in bulk.	Ingredient price lists, calculators, worksheets, recipe cards
25 – 35 min	Financial Viability Calculation	- Explain breakeven concept: costs vs price. - Show how to calculate total variable cost for multiple units. - Students estimate costs for making different quantities. - Introduce simple profit calculation: Price - Variable Cost = Profit per unit.	Spreadsheet template or graph paper, calculators
35 – 45 min	Group Discussion & Scenario Analysis	- Students discuss challenges: what if costs increase? What if they price too low or high? - Teacher facilitates reflection on how to adjust prices or recipes to ensure viability. - Highlight importance of balancing quality, price, and cost.	Group seating, discussion prompts
45 – 55 min	Applying Algebra (Optional Extension)	- For interested students, introduce simple equations like: Profit = (Price × Quantity Sold) – (Variable Cost × Quantity Sold) – Fixed Costs - Students write equations representing their own stall's financial model and solve for breakeven quantity.	Whiteboard, calculators, algebra worksheets
55 – 60 min	Summary & Reflection	- Recap key learnings. - Students write a short reflection: how will this support their Market Day preparation? - Set homework: refine their business plan using financial viability insights.	Reflection sheets

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Pedagogical Notes

• Use real-world costing examples from local supermarkets or online sources relevant to NZ.
• Encourage use of NZ dollars with cents for realism.
• Build on students’ prior knowledge of decimals, percentages, and simple algebra.
• Differentiate by providing scaffolded worksheets for less confident students and extension challenges for advanced learners (like algebraic formulations).
• Support ELL and Māori/Pasifika students by connecting business vocabulary to everyday language; use visuals and bilingual support where possible.

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Assessment Opportunities

• Formative:

  • Observation of student calculations and participation.
  • Worksheets reviewing variable cost calculations.
  • Group discussions reflecting understanding of financial viability.

• Summative Opportunity:

  • Updated business plan incorporating cost calculations and pricing strategies.
  • Reflection writing showing understanding of financial viability.

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Alignment with NZ Curriculum in Detail

Curriculum Area	Reference	How Addressed
Business Studies	Level 5-6	Economic concepts: financial viability; cost factors; decision making
Mathematics & Statistics	Financial Maths (Te Mātaiaho Years 9-10)	Calculate costs, percentages, and basic profit; proportional reasoning; linear equations. Links to real situations of purchases, costs and budgeting
Key Competencies	Across curriculum	Develop thinking, managing self, participating and contributing through authentic business task.

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If you would like, I can also provide printable worksheet templates or suggested slide content tailored to this lesson plan. Would that be helpful?