Lesson 5 – Developing a

model (Phase 2)
Starter – Lesson Introduction
• In this lesson, you will improve Sid’s
Snow School spreadsheet and make it
even more useful for him.
• At the end of last lesson he realised
that he had some costs that had not
been included.
• We had to add these to the model. This
meant his profit fell.
 Lesson Objectives
• WALT (We Are Learning To) & WILF (What
I’m Looking For)
– Enter a new variable without help
– Enter a formula which will calculate accurately
– Understand what happens because of the changes we
make to variables

Remember, the less help you have, the

more marks your teacher can give you.
Open your Sid’s snow school spreadsheet
• Open your Sid’s Snow School
spreadsheet which is located
in your Unit 7.4 folder in your
Year 7 ICT folder.
 Activity 1 – Add rows for new products

• Sid tells you he has

decided to sell hot
drinks, ski gloves and
hats.
• The new information
needs to be added to
both the Revenue and
the Costs sections of
the spreadsheet.
• Insert three lines into
each of these sections
and enter the new
products.
 Activity 2 – Enter Costs
• Sid’s supplier, Slalom
Ski Supplies, has
agreed some very good
costs for the new
products, if Sid buys
Slalom Ski
certain amounts. They
have sent him the
Supplies
price list on the right. Price list
• Enter this information
into your spreadsheet Product
Cost per unit
Unit bought

in the Cost per unit Hot drinks 250 20p

section. Ski gloves 35 £7.00
Hats 42 £5.00
Tip: You will need to change the
formula for Total costs to include the
new rows.
 Understand the impact of changes in a
spreadsheet
• Remember that the
main reason most
companies exist is to
make a profit.
• Now that your costs
for the new
products are in the
spreadsheet, what
has happened, what
has happened to
Sid’s profits?
Add revenue for new products
• This next task is a
bit more tricky. You Relative cell referencing
need to add the
revenue that Sid
makes on the three
=D5*E5
Absolute cell
new products. referencing

• To do this, you are

going to use absolute =D5*$E$
cell referencing (see
Unit 7.4, Lesson 3). 5
 Add a mark up on costs
• Sid has decided to sell hot
drinks at a fixed price of
£1.50.
• He wants to sell the ski
gloves and hats at double
the price he buys them
for. This is 200% of the
cost.
• You need to put the 200%
value into your
spreadsheet.
• This cell will be your
absolute cell reference
when you enter the
formula to work out
revenue.
 Work out prices using an absolute
cell reference
• Enter the price for hot
drinks as a value.
• You now need to create a
formula that will work out
the price that Sid is selling
hats and gloves for, using the
200% and the cost of the
product.
• Usually we would write this
as 200% x cost of product.
• How would you do this in the
spreadsheet? Remember, you
need to use absolute cell
referencing.

Tip: Remember to check that your

formula for Total revenue includes the
new rows.
 Homework
• Complete the homework
sheet.

• Log in to Fronter and go to

your ICT classroom.
• Click on the “Resources”
folder and then click on the
“Unit 7.4” folder and then
the “Unit 7.4 – Lesson 5”
folder.
• Contained inside is the
“Homework Sheet”.
 Homework Activity
Copy and paste a screenshot of your completed spreadsheet into the
homework sheet. Use this to evaluate your work, explaining how you
calculated revenue, costs and profits, and what changes happened when
additional products were added to the model.
 Hand-in homework sheet

• Hand-in the
spreadsheet in the
“Unit 7.4 – Lesson
5 (Homework
sheet)” hand-in
folder.
 Plenary
• Identify three differences that the
changes have made to the final figure.