Show the difference between revenues and costs, Financial Management

Assignment Help:

• Sales revenue line drawn and labelled correctly and accurately

• Fixed cost line (at $1,020) labelled and drawn accurately and correctly

• Total costs line (starting at $1,020) drawn and labelled correctly and accurately

• Intersection of the sales revenue line with the total costs line at 600 units

• Clearly showing on the x-axis that the BEQ = 600 hotdogs p/m

b) Rent increases by 50% = 200 * 1.5 = $300

Hence, the revised fixed costs = $300 + $500 + $320 = $1,120

A new fixed cost line should therefore be plotted.

New BEQ is therefore: $1,120 / ($2.5 - $0.8) = 659 hotdogs p/m

This should be clearly shown on the break even chart.

Daily sales increase by 70% = 200 * 0.7 = 140 units sold, i.e. Nicole Harvey sells an extra 30 units more each day (thereby the difference between revenues and costs are greater, i.e. the firm makes more profit).

For maximum marks, the candidate must: show all working out, show the effect of higher costs on the fixed costs for the firm and the subsequent impact on BEQ. There should also be a comment of the change (reduction) in BEQ.


Related Discussions:- Show the difference between revenues and costs

Walter''s dividend model, explain the assumptions underlying Walter''s divi...

explain the assumptions underlying Walter''s dividend model?

Price volatility characteristic of bond with embedded option, The price of ...

The price of the embedded option comprises two components. The first is the value of the same bond assuming it has no embedded option (option-free bond), th

Default risk, Default risk is the risk that arises when the iss...

Default risk is the risk that arises when the issuer is not able to satisfy the terms and conditions of the obligation with respect to timely pa

Assignment, I should write assignment on financial management ,but have no ...

I should write assignment on financial management ,but have no idea how to start and how to develop. Please help me

Share-based payments and retirement benefits, Applicant should have been we...

Applicant should have been well versed in the calculation of actuarial losses and gains on pensions. It would have been significant to ensure each item affecting liabilities and as

Risks associated with investing in bonds, Interest rate risk is the risk wh...

Interest rate risk is the risk wherein the investor in bonds faces the risk of a fall in his bond price as and when there is a rise in the market interest r

Factors influencing capital structure, FACTORS INFLUENCING CAPITAL STRUCTUR...

FACTORS INFLUENCING CAPITAL STRUCTURE/DETERMINANTS OF THE CAPITAL STRUCTURE 1. Financial leverage (or) Trading on equity it is the make use of long term fixed interest bea

Rectification of errors, What is rectification of errors? List and explain ...

What is rectification of errors? List and explain the stages where the errors are deducted for rectification.

Agency Problem, What is the potential of having agency problems

What is the potential of having agency problems

Compute the expected stock price, 1. Using ratio analysis, compare your fif...

1. Using ratio analysis, compare your fifth year to the current year and discuss. 2. Compute the expected stock price at the end of the fifth year. Assume your stockholders hav

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd