The Cost of a Cupcake

The lesson introduces ideas about accounting and finance associated with developing a new business. The article, “Red Velvet Revolution: The Rise of the Cupcake Entrepreneur,” and the accompanying video on the Knowledge@Wharton High School website set the stage for an initial business or math class lesson about fixed and variable costs associated with the development of a new business and an introduction into basic accounting. Students will use the resources to launch into a discussion and brainstorming session about the initial steps for designing the financial plan for a new business and variables that must be considered. Students will begin researching different costs and learn about basic accounting using Excel.