--- title: The lemonade stand: cost, price, profit and loss — a lesson of Mova's school · trees and pragmatics description: «The lemonade stand: cost, price, profit and loss», a lesson of the money course of Mova's primary school, sentence by sentence with dependency trees and pragmatics. It begins: Every business, from a lemonade stand to a giant company, works on one simple sum: money in, minus money spent, equals prof --- [Mova](https://md.mova.elamur.ai/free/en/) · [this page in HTML](https://mova.elamur.ai/free/en/corpora/school/money/31-the-lemonade-stand-cost-price-profit-and-loss/) [home](https://md.mova.elamur.ai/free/en/) / [corpora](https://md.mova.elamur.ai/free/en/corpora/) / [school](https://md.mova.elamur.ai/free/en/corpora/school/) / [Money](https://md.mova.elamur.ai/free/en/corpora/school/money/) / The lemonade stand: cost, price, profi… # The lemonade stand: cost, price, profit and loss Lesson 31 of the money course of Mova's primary school: 13 sentences, each with its syntax tree and pragmatics. The lessons are written for Mova, and their agreed trees are part of Mova corpus 0.4 (CC BY-SA 4.0). How Mova does on its tests: [the lesson at school](https://md.mova.elamur.ai/free/en/school-run/money/31-the-lemonade-stand-cost-price-profit-and-loss/). - [0](https://md.mova.elamur.ai/free/en/corpora/school/money/31-the-lemonade-stand-cost-price-profit-and-loss/0/) — Every business, from a lemonade stand to a giant company, works on one simple sum: money in, minus money spent, equals profit, and if the answer is below zero, it is a loss. - [2](https://md.mova.elamur.ai/free/en/corpora/school/money/31-the-lemonade-stand-cost-price-profit-and-loss/2/) — The next day it rains, they sell only 6 cups, which is £3, and they still spent £5, so they lose £2; that is the risk of running your own business. - [3](https://md.mova.elamur.ai/free/en/corpora/school/money/31-the-lemonade-stand-cost-price-profit-and-loss/3/) — The price matters too: at £2 a cup hardly anyone buys, at 50p lots do, and when the kid next door sells at 40p, customers drift away unless your lemonade is better. - [4](https://md.mova.elamur.ai/free/en/corpora/school/money/31-the-lemonade-stand-cost-price-profit-and-loss/4/) — Good businesses keep records of money in and out, agree how to share profit before they start, and do not buy more stock than they can use. - [5](https://md.mova.elamur.ai/free/en/corpora/school/money/31-the-lemonade-stand-cost-price-profit-and-loss/5/) — Cost is the money spent to make something; revenue, or takings, is the money from selling; profit is revenue minus cost. - [7](https://md.mova.elamur.ai/free/en/corpora/school/money/31-the-lemonade-stand-cost-price-profit-and-loss/7/) — A loss is when costs are bigger than the money made: 6 cups at 50p is £3, and £3 − £5 = −£2, a loss of £2. - [8](https://md.mova.elamur.ai/free/en/corpora/school/money/31-the-lemonade-stand-cost-price-profit-and-loss/8/) — Risk is the chance of losing; weather, luck and customers can change how much a business sells. - [9](https://md.mova.elamur.ai/free/en/corpora/school/money/31-the-lemonade-stand-cost-price-profit-and-loss/9/) — If the price is too high, fewer people buy: 3 cups at £2 bring £6, but 20 cups at 50p bring £10. - [10](https://md.mova.elamur.ai/free/en/corpora/school/money/31-the-lemonade-stand-cost-price-profit-and-loss/10/) — Competition means other businesses selling the same thing; when a rival sells cheaper, sales can drop, like from 20 cups to 12, which is 12 × 50p = £6. - [11](https://md.mova.elamur.ai/free/en/corpora/school/money/31-the-lemonade-stand-cost-price-profit-and-loss/11/) — Adding a new product adds its own cost and profit: 10 biscuits at 30p bring £3, and if the pack cost £1, the biscuits make £2 profit. - [13](https://md.mova.elamur.ai/free/en/corpora/school/money/31-the-lemonade-stand-cost-price-profit-and-loss/13/) — Accounts are records of money in and out: costs of £2 + £1 + £2 = £5 and takings of £12 give a profit of £7. - [14](https://md.mova.elamur.ai/free/en/corpora/school/money/31-the-lemonade-stand-cost-price-profit-and-loss/14/) — Many people mix up takings and profit; profit is only what is left after costs. - [16](https://md.mova.elamur.ai/free/en/corpora/school/money/31-the-lemonade-stand-cost-price-profit-and-loss/16/) — Stock is the things a business keeps to sell or use; 20 lemons at 20p cost £4, and if only 12 are used, the 8 that go bad waste 8 × 20p = £1.60. - ← previous: [Why some jobs pay more](https://md.mova.elamur.ai/free/en/corpora/school/money/30-why-some-jobs-pay-more/) - next →: [The school fair, famous companies and being your own boss](https://md.mova.elamur.ai/free/en/corpora/school/money/32-the-school-fair-famous-companies-and-being-your-own-boss/) - ↑ back to [Money](https://md.mova.elamur.ai/free/en/corpora/school/money/)