Test Your Knowledge: Financial Literacy

Instructions: Select the best answer for each question.

1. Which formula calculates revenue?
2. What does cost of goods sold (COGS) measure?
3. A business earns $50 in revenue and pays $30 for the products sold. What is its gross margin in dollars?
4. In the coffee example, what does the $1.25 left after paying 75 cents for ingredients represent?
5. Why is gross margin not the same as profit?
6. A shop sells 1,000 coffees for $2 each. What is the revenue?
7. If ingredients cost $750 and operating costs are $850, how much profit remains from $2,000 in revenue?
8. In the lesson, why is coffee called a system?
9. What does it mean when the lesson says coffee is often the hook?
10. Why do coffee shops offer muffins, snacks, larger sizes, and rewards programs?
11. What is the main financial lesson in "Revenue is exciting. Profit is survival"?
12. What should young entrepreneurs learn to ask after this lesson?
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Use the Coffee Counter Math Lab to test price, costs, margin, profit, hooks, and upsells.

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