Printable student investigation and teacher guide

Lemonade Stand Simulator Worksheet

Run a controlled booth experiment, calculate unit economics, diagnose demand and capacity, and recommend a responsible next decision from evidence.

Direct classroom scenario launch codes

Launch a matched lemonade stand scenario with one click

Teachers and students can start all devices on the exact same baseline parameters using these direct scenario URLs:

Investigation goal

Use the simulation as a small business laboratory, not a guessing contest. Complete one baseline day, change one controllable decision, and repeat the comparison under similar forecast conditions. Your recommendation must connect profit to at least one operating measure such as cups sold, waste, lost customers, capacity, cash, or reputation.

Student: ____________________ Date: ____________________ Team role: ____________________

1. Choose one decision question

Independent variable—the one decision I will change:

Controls I will keep stable: location, challenge, recipe, batch, helpers, promotion, ice, and price except for the variable selected above.

Prediction: If I change __________ from __________ to __________, then __________ will change because:

Fair-comparison rule: Forecasts and random demand are not controllable. Prefer days with similar forecasts, record the weather, and repeat rather than treating one result as proof.

2. Estimate the booth economics before running

Contribution per cup = cup price − ingredient cost per cup

Break-even cups = fixed daily costs ÷ contribution per cup, rounded up

Daily profit = cups sold × cup price − total daily cost

Waste rate = wasted cups ÷ cups made × 100

The simulator estimate includes ingredients for every cup made, not only cups sold. Fixed costs include the location fee plus helper and promotion costs. Standard serving capacity starts at 38 cups and each helper adds capacity, so break-even is useful only when both inventory and capacity can reach it.

Cup price:
Ingredient cost/cup:
Contribution/cup:
Fixed daily costs:
Break-even cups:
Planned batch:
Serving capacity:
Cash after setup:

Feasibility check: Is break-even no greater than the batch and serving capacity? ☐ Yes ☐ No. Can the booth afford the plan and another weak day? ☐ Yes ☐ No.

3. Record baseline, test, and repeat evidence

Use the same location and challenge. A repeat may not match exactly because forecasts and demand vary; that uncertainty is part of the investigation.

RunForecastPriceQuality / iceBatchHelpers / promotionCapacitySoldWasteLostRevenueTotal costProfitCash / reputation
Baseline
Test
Repeat

Test minus baseline profit: __________ Waste-rate change: __________ Lost-customer change: __________

Did the repeat support the same pattern? ☐ Yes ☐ No ☐ Mixed. Explain with two numbers:

4. Diagnose the operating result

Primary diagnosis: ☐ demand ☐ inventory ☐ serving capacity ☐ unit margin ☐ fixed cost ☐ weather uncertainty ☐ quality/reputation

Expansion stop rule: Do not add both inventory and a helper at once. Expand only when repeated evidence identifies the constraint, the expected extra contribution exceeds the extra cost, and cash remains for another operating day.

5. Write an evidence-bounded recommendation

Claim: Which decision should the booth use next?

Evidence: Cite at least three connected numbers, including profit and one customer or operating measure.

Reasoning: Explain the demand, capacity, cost, cash, waste, or reputation mechanism connecting the decision to the evidence.

Tradeoff and uncertainty: What became worse? How might forecast or random demand weaken the claim?

Next controlled test and stop condition:

Teacher guide: flexible classroom routes

50-minute investigation

  1. 8 minutes: distinguish revenue, contribution, fixed cost, break-even, and profit; test whether break-even fits the planned batch and capacity.
  2. 7 minutes: pairs choose one question, state controls, precommit three measures, and predict a tradeoff.
  3. 18 minutes: run a baseline, one-variable test, and repeat under the closest available forecast.
  4. 10 minutes: calculate differences, diagnose the constraint, and write a claim with three connected numbers.
  5. 7 minutes: compare teams. Ask why the highest price, biggest batch, or most helpers did not automatically maximize profit.

Short and access routes

Suggested answer pattern: a strong plan balances contribution per cup with demand, makes enough inventory for plausible sales, adds capacity only when service is the constraint, limits waste, and preserves cash. Multiple answers can earn full credit when the evidence and uncertainty are handled correctly.

12-point assessment rubric

For a longer project, use the complete business simulation assessment rubric, controlled experiment guide, and student business calculators.

Real-world, legal, safety, and advertising boundaries

The simulation intentionally leaves out many requirements. A real lemonade or school-fair booth may need organizer approval, permits, inspected water and ingredients, temperature control, handwashing, allergen disclosure, sanitation, accessible service, safe lifting, responsible cash handling, tax records, and age-appropriate adult supervision. Current local rules and school policies—not the game—control.

Promotions must be accurate and authorized. Do not invent scarcity, health benefits, endorsements, donations, discounts, or environmental claims. Protect student and customer privacy; do not collect names, photos, contact details, or payment information for this exercise. Never click ads or recruit traffic to generate advertising revenue.

Boundary check: Identify one missing real-world requirement and explain how adding it might change cost, capacity, demand, or the recommended strategy.

Lemonade stand worksheet FAQ

What is a fair test in the Lemonade Stand Simulator?

Change one decision, such as price or batch size, while holding the location, challenge, recipe, helpers, promotion, ice, and other controllable settings stable. Compare similar forecast conditions and repeat the test because random demand still varies.

How should students calculate contribution per cup and break-even cups?

Contribution per cup equals selling price minus ingredient cost per cup. Break-even cups equals fixed daily costs divided by contribution per cup, rounded up to a whole cup. It is feasible only when it is no greater than both the planned batch and serving capacity.

Why can a profitable lemonade stand still have a weak strategy?

One profitable day may depend on favorable weather or random demand. The plan may also waste cups, turn away customers, damage reputation, or risk too much cash. Judge repeated profit with operational and customer evidence.

When should students add a helper or make a larger batch?

Add inventory when demand repeatedly exceeds the batch, and add a helper when demand repeatedly exceeds serving capacity. Change one constraint at a time only when expected extra contribution exceeds extra cost and cash remains for another day.

Does the simulator replace real food-service, legal, or safety guidance?

No. It is a simplified educational model. A real booth must follow current local permit, food-safety, allergen, sanitation, tax, labor, cash-handling, accessibility, school-supervision, and truthful-advertising requirements.