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

Fund raising and investment, Fund Raising and Investment: Fund commitme...

Fund Raising and Investment: Fund commitment requirement in Hedge Funds sometimes exceeds millions of dollars. In addition, high minimum investments are sometimes closed to new

Explain benefits of investing via international mutual funds, What are the ...

What are the benefits of investing via international mutual funds? Answer:  The benefits of investing via international mutual funds consist of: (a) Save transaction or info

What is an agent? what are the responsibilities of an agent?, What is an ag...

What is an agent? What are the responsibilities of an agent? An agent is a person who has the actual or implied authority to act on behalf of another.  The owners whom the agen

How a firm determines the optimal level of current assets, Explain how a fi...

Explain how a firm determines the optimal level of current assets. The best possible level of working capital is determined by finding the amount that balances the need for liq

Finance company vital role in investment intermediaries, How is the finance...

How is the finance company play a vital role in investment intermediaries? Finance companies: Finance companies make loans to corporations and individuals by giving consu

Company capacity to continue trading, Company capacity to continue trading ...

Company capacity to continue trading Given the preceding discussion it is unlikely that the business can continue in its current form. The trading performance is clearly very

What are the material items are carried out, What are the Material items ar...

What are the Material items are carried out Material items would have an impact on: Audit tests carried out. For illustration compliance based testing (relying on contro

Assessing impact on management risk, Assessing Impact: As with the asse...

Assessing Impact: As with the assessment of likelihood, a valuable way of assessing impact would be the creation of categories of impact as follows: Level

What is coupon rate, What is Coupon Rate Coupon rate is the stipulated ...

What is Coupon Rate Coupon rate is the stipulated interest rate to be paid on the face value of a bond.  It represents a fixed dollar amount which is paid periodically as long

Example on bills of exchange, Q. Example on Bills of exchange? ARG Co w...

Q. Example on Bills of exchange? ARG Co will be apprehensive to protect the sterling value of its expected dollar receipt. The quoted forward rates demonstrate that the dollar

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