Value For Money

1
Value For Money

• OCR Stage 7

2
What is it?

• We use Value for Money when deciding which of TWO
  or more choices of what to buy
• For example
• 750g of Corn Flakes for 2.25
• 250g of Corn Flakes for 0.80

3
How to decide on Corn Flakes

• This is a simple case
• The 750g pack is 3 x 250g
• 3 x 250g 3 x 0.80

2.40
A 750g pack only costs 2.25
Best Value for Money is the 750g pack
Get same amount for LESS cost
4
Other Methods

• But most questions are not that simple
• Need another method
• There are actually 2 ways to compare prices and
  Value for Money

5
1 Price Per Unit

• In the Cornflakes example, we can compare price
  per gram

250g Pack 0.80
750g Pack 2.25
0.8 250
2.25 750
0.0032
0.003
per gram
per gram
Best Value is LOWEST cost per gram
6
2 Units per pence or

• In the Cornflakes example, we can compare UNITS
  per

250g Pack 0.80
750g Pack 2.25
250 0.8
750 2.25
312g
333.3g
per
per
Best Value is HIGHEST quantity per