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Skills that use Calculation

1. Costs, revenue, profit and break-even

   Assessed: In the exam and in coursework (NEA)

   Learners calculate and interpret total costs, total revenue and profit or loss, and calculate break-even using the contribution method (fixed costs divided by contribution per unit). Unit 4 also requires calculating costs, revenues and profit for a proposal.

   Numeracy: Financial literacy, Calculation, Strategic competence, Conceptual understanding, Logical reasoning

   Getting pupils ready

   Year 7

   Pupils work out the profit or loss on a class cake sale from ingredient costs and takings and say whether it was worth running.

   Year 8

   Pupils sort a school enterprise's costs into fixed and variable, then calculate total cost and profit for 50 and for 100 items sold.

   Year 9

   Pupils calculate how many hot chocolates a Year 9 stall must sell to break even by dividing fixed costs by contribution per cup, then check the answer in a table.

   Show the specification wording and the LNF statements

   Where it is in the specification: Unit 1, Section 1.7.3 Break-even and contribution, page 18

   “Learners should be able to calculate and interpret break-even through the contribution method.”

   Progression step 3

   • I can use profit and loss in buying and selling calculations.

   • I can divide 3-digit numbers by a 2-digit number.

   • I can prioritise and organise the relevant steps needed to complete the task or reach a solution.

   Progression step 4

   • I can recognise, model and apply the underlying mathematical structures and ideas within problems, in order to formulate and solve them.

   • I can use the four operations and the connections between them, e.g. apply division as the inverse of multiplication.

   • I can interpret answers within the context of the problem and consider whether answers, including calculator, analogue and digital displays, are sensible.

   Progression step 5

   • I can recognise, model and apply the underlying mathematical structures and ideas within problems, in order to formulate and solve them.

   • I can justify my procedures, predictions and conjectures.

   • I can interpret answers within the context of the problem and consider whether answers, including calculator, analogue and digital displays, are sensible.

2. Income statements and profit margins

   Assessed: In the exam

   Learners calculate and interpret an income statement (gross profit, net profit) and the gross and net profit margin percentages to evaluate financial performance.

   Numeracy: Calculation, Relationships within the number system, The number system, Fluency, Conceptual understanding

   Getting pupils ready

   Year 7

   Pupils use a simple diagram to find what fraction and percentage of a £1 snack price covers costs and what is left as profit.

   Year 8

   Pupils express the profit on two tuck shop items as a percentage of each selling price and say which item earns more per pound.

   Year 9

   Pupils calculate gross profit, net profit and both profit margins from a simple income statement for a local café, then write one sentence on what the margins show.

   Show the specification wording and the LNF statements

   Where it is in the specification: Unit 3, Section 3.3.4 Financial performance, page 30

   “calculate and interpret profitability ratios to evaluate financial performance, including: • gross profit margin • net profit margin.”

   Progression step 3

   • I can calculate a percentage, fraction and decimal of any quantity with a calculator where appropriate.

   • I can use equivalence of fractions, decimals and percentages to compare proportions.

   • I can add and subtract numbers using whole numbers and decimals.

   Progression step 4

   • I can express one quantity as a percentage of another.

   • I can calculate a percentage increase or decrease.

   • I can choose the appropriate degree of accuracy to present answers.

   Progression step 5

   • I can use multipliers as an efficient method when working with percentages, e.g. multiply by 1.2 to increase an amount by 20%.

   • I can use a scientific calculator effectively and efficiently to carry out calculations using the available range of function keys.

   • I can interpret answers within the context of the problem and consider whether answers, including calculator, analogue and digital displays, are sensible.

3. Cashflow forecasts

   Assessed: In the exam and in coursework (NEA)

   Learners calculate and interpret a cashflow forecast (revenue, expenses, net cashflow, opening and closing balance) and recommend improvements. Unit 4 requires creating a cash flow forecast for their own proposal.

   Numeracy: Financial literacy, Calculation, Communicating with symbols, Strategic competence, Conceptual understanding

   Getting pupils ready

   Year 7

   Pupils keep a four-week record of money in and out for a class enterprise, carrying each closing balance forward to the next week.

   Year 8

   Pupils complete a three-month cashflow table for a pop-up stall at Aberdare market, including a month with a negative balance, and suggest one fix.

   Year 9

   Pupils build a six-month cashflow forecast for a planned business from given figures and recommend two improvements where the closing balance goes negative.

   Show the specification wording and the LNF statements

   Where it is in the specification: Unit 3, Section 3.3.3 Cashflow and cashflow forecasts, page 30

   “calculate and interpret a cashflow forecast • recommend improvements to cashflow.”

   Progression step 3

   • I can plan and track money and savings by keeping accurate records.

   • I can add and subtract totals less than £100 using correct notation, e.g. £28.18 + £33.45.

   • I can realise that budgeting is important.

   Progression step 4

   • I can appreciate the basic principles of budgeting, saving (including understanding compound interest) and borrowing.

   • I can use efficient written methods to add and subtract numbers and decimals of any size, including a mixture of large and small numbers with differing numbers of decimal places.

   • I can refine methods of recording calculations.

   Progression step 5

   • I can prioritise and organise the relevant steps needed to complete the task or reach a solution.

   • I can refine methods of recording calculations.

   • I can interpret answers within the context of the problem and consider whether answers, including calculator, analogue and digital displays, are sensible.

Source: WJEC GCSE Business specification, Version 4, September 2025 (teaching from 2025, for award from 2027).