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How Oakmere Bike Care Sets Prices worksheet preview

Worksheet

How Oakmere Bike Care Sets Prices

Read how a suburban bike shop produces goods and services, then use a cost graph to decide which prices cover costs.

Grade 3Social StudiesInteractive · Printable

Aligned toECO.3.3

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What’s included

  • Single worksheet
  • Auto-graded online
  • 1 C3 Framework standard
  • Printable answer key
  • 15 questions
  • Classroom-ready

Details

Format
Interactive · Printable
Grade
Grade 3
Subject
Social Studies
Question types
Fill in the blank, Multiple choice, Circle the answer, Short answer

About this worksheet

What students practice

  • Students identify goods and services produced by a neighborhood business.
  • Students use estimated costs to decide whether prices cover business costs.
  • Students explain why businesses compare costs with prices.

How to use

Read the neighborhood business article together, study the cost graph, and have students explain how the graph can guide pricing decisions.

Curriculum

C3 Framework standard covered

ECO.3.3

Explain how businesses produce goods and services and set prices that cover their costs.

Preview

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Name Date

How Oakmere Bike Care Sets Prices

Use a neighborhood business story and cost graph to study prices.

Read about Oakmere Bike Care

Read the neighborhood newsletter article. Then answer the questions.

A Shop on Oakmere Lane

Oakmere Bike Care is a small business in a suburban neighborhood. Owner Priya Shah and her helper, Theo, work with bicycles. They provide repair services, such as fixing flat tires and adjusting brakes. They also produce a good called a reflector kit. Each kit has reflective strips and clips that workers put together and package for customers to take home.

Different offerings take different amounts of work and materials. A flat-tire repair uses a new tube and worker time. A brake adjustment uses small parts and worker time. A basket installation uses mounting parts and takes longer than putting together a reflector kit. Priya and Theo also spend time checking bicycles, talking with customers, and cleaning their work area.

Before setting a price, Priya estimates the cost of one offering. She counts materials or parts, worker time, and a share of shop expenses such as rent, electricity, and tool upkeep. Then she compares the estimate with the price she plans to charge. Oakmere's usual prices are $15 for a flat-tire repair, $18 for a brake adjustment, $9 for a reflector kit, and $20 for a basket installation. A price that is below the estimated cost would leave part of the business's cost unpaid.

1.
What is the main idea of the article?
  • A. Bike shops mainly teach neighbors how to ride.
  • B. Neighborhood shops charge one price for every job.
  • C. A business makes offerings and uses costs to help choose prices.
  • D. Bicycle parts are made in every suburban neighborhood.
2.
A neighbor pays Oakmere to check tire pressure and tighten a brake. What is the neighbor buying?
  • A. A service, because workers are doing a job for the customer
  • B. A good, because every bike job includes a physical object
  • C. A tool, because the shop uses tools during the work
  • D. A material, because the customer brings a bicycle
3.
Which action is part of producing Oakmere's reflector-kit good?
  • A. Checking a customer's bicycle tire
  • B. Talking with a customer about a repair
  • C. Adjusting the brakes on a bicycle
  • D. Putting strips and clips together and packaging them
4.
Why might the usual price for a basket installation be higher than the price for a reflector kit?
  • A. Basket installations use no worker time.
  • B. The installation has a higher estimated cost to cover.
  • C. Reflector kits cannot be taken home.
  • D. Customers choose the price of every repair.
5.
Why does Priya include rent, electricity, and tool upkeep in an offering's estimated cost?
  • A. Those expenses help keep the shop ready to produce goods and services.
  • B. Those expenses tell customers which bicycle color to choose.
  • C. Those expenses replace the need for worker time.
  • D. Those expenses make every offering cost the same amount.

Use the cost graph

Study the graph. It shows the estimated cost for one of each offering.

Estimated Cost per Offering02468101214Flat-tire repairBrake adjustmentReflector kitBasket installOfferingDollars
6.
According to the graph, which offering has an estimated cost of $12?
  • A. Flat-tire repair
  • B. Reflector kit
  • C. Brake adjustment
  • D. Basket installation
7.
A customer offers $13 for a basket installation. What should Priya decide?
  • A. Accept it because any price is enough for a service.
  • B. Accept it because $13 is close to the estimated cost.
  • C. Refuse to install baskets for any customer.
  • D. Set a price of at least $14 for this installation.
8.
Circle the TWO prices that cover the estimated cost shown in the graph.

A flat-tire repair for $7A brake adjustment for $12A reflector kit for $4A basket installation for $15

9.
Which offering has the smallest estimated cost according to the graph?
  • A. Flat-tire repair
  • B. Reflector kit
  • C. Brake adjustment
  • D. Basket installation
10.

The estimated cost for one reflector kit is $5. The estimated cost for 3 reflector kits is $ .

11.
How can the graph help Priya set prices?
  • A. It lets her compare each offering's cost with its planned price.
  • B. It tells her which bicycle a customer will buy next.
  • C. It counts the number of bicycles in the neighborhood.
  • D. It predicts the exact number of sales each day.

Make a pricing plan

Use what you learned about costs and prices to answer the final questions.

12.
Jules says that a $4 price covers a reflector kit because it is close to the $5 estimated cost. Which response is best?
  • A. The price should be raised to at least $5 to cover the estimated cost.
  • B. The price should be lowered so more people will buy kits.
  • C. The price is fine because it is close to the estimated cost.
  • D. The price does not matter when a business sells a good.
13.
Oakmere plans a new bicycle pickup service with an estimated cost of $9. Which price covers that cost and leaves at least $1 for future shop expenses?
  • A. $7
  • B. $10
  • C. $9
  • D. $8
14.
Use the article and graph to explain why Oakmere cannot use one price for every offering. Give two details as evidence.
15.
A new handlebar pouch would have an estimated cost of $11. Suggest a whole-dollar price that covers the cost. Explain how you know, and name one kind of cost Oakmere might include in its estimate.

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