Creating Project Cost Estimates
This scenario-based activity, created by the STEM Transitions project team, is free and requires a one-time registration to access all site materials. The activity provides a forum for groups of students to respond to a hypothetical service request and identify the elements needed for a project cost estimate and how to complete the needed forms. Every day, businesses publicize sales on services to draw in customers and/or lure them away from their competitors. In order to attract new business, business owners must consider the following: How much can a business afford to mark-down the costs of goods and services and still make a profit? Also, when dealing with service industries that base charges on time (i.e. auto mechanic repair industry), technicians should have an understanding of how the employees and business are able to assess charges and make a profit. The activity incorporates a real-life scenario to instruct students on how to formulate billing and how to make a profit on business services.
Students will be able to: (1) Create business related financial documents; (2) Demonstrate the ability to work collaboratively to explore mathematics concepts; (3) Gather data and represent it accurately; (4) Analyze data algebraically; (5) Demonstrate and apply understanding of financial ratios; and (6) Draw conclusions from collected data. In addition, students will be able to demonstrate the following agriculture/agribusiness skills: (1) Develop a complete materials list and project cost estimate using bids and billing information; (2) Identify elements of a project cost estimate (materials, labor, administrative, etc.); and (3) Prepare a bid package for a planned project.