mf & gc world cup finance fun

Mr C & Mr F’s Crazy World Cup Conundrums!

FUN TASK designed to bring in / tie together ALL the topics we’ve been doing these past couple of weeks!

BREAK-EVEN

COSTS (START-UP & RUNNING)

PROFITS

LOSS

REVENUE / TURNOVER

England v Algeria 7:30pm BBCGreen Point Stadium Cape Town South Africa

TONIGHT!

How many Vuvuzelas will need to be sold by Andre Preneur (Stadium Owner ) to cover the

cost of hosting the big match tonight?

Cost of hosting match £2 Million (Mr Williams News Research!)

Cost of making Vuvuzela 50p each

Vuvuzela sells for £5 each

Does Vuvuzela revenue cover costs (assuming everyone buys one)?

Does Andre cover the costs?How big would the stadium have to be to

break even using vuvuzela revenue?

Mr C & Mr F’s Crazy World Cup Conundrums!

England v Algeria 7:30pm BBCGreen Point Stadium Cape Town South Africa

TONIGHT!

What about other sources of REVENUE?Name 5!

(SPACE TO RECORD REVENUE SOURCES AND RELEVANT COSTS AND SELLING PRICES)

Now does Andre cover costs?(Don’t forget income from the Vuvuzelas!)

Does he make a PROFIT or a LOSS?

Can you now define COSTS, REVENUE, PROFIT AND LOSS?

Mr C & Mr F’s Crazy World Cup Conundrums!

Adidas are the official suppliers of the World Cup Ball – “Jabulani”

When Adidas were approached by FIFA to make 800 Footballs for the World Cup, they had to come up with some financial figures

(based on 2 months work) –

3 Designers Wages - £300,000Factory Premises Germany - £2.2M

Workers (10) Wages - £200,000Materials - £80,000Heating - £200,000Lighting - £10,000

Electricity - £500,000Water - £30,000

Canteen Facilities - £20,000

What are the TOTAL COSTS?Which are START-UP and which are RUNNING

COSTS?

Mr C & Mr F’s Crazy World Cup Conundrums!

Adidas reckon they could make some money from “Jabulani” sales worldwide! When do

they break-even according to the figures and formula below..

Rent for Factory - £2MTax - £5M

Insurance - £1MHeating, Lighting, Electric etc - £2M

Workers Wages per ball - £10Materials per ball - £3

Each ball retails (sells) for £80

Break Even Formula – FC / (SP-VC)

What is the Break even point? How many balls will need to be sold?

Mr C & Mr F’s Crazy World Cup Conundrums!

Mr C & Mr F’s Crazy World Cup Conundrums!

ONE LAST CHECK:

What are COSTS?FIXED COSTS?

VARIABLE COSTS?START-UP COSTS?RUNNING COSTS?What is PROFIT?

LOSS?REVENUE?

SELLING PRICE?BREAK-EVEN?

WHO ELSE IS MAKING MONEY FROM THE WORLD CUP?

Mr C & Mr F’s Crazy World Cup Conundrums!

REWARD TIME

WORLD CUP MATCH or

INTERNET TIME