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

Determine the net present value, The following information pertains to Fair...

The following information pertains to Fairways Driving Range, Inc.: The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they wi

364-day t-bills, 364-Day T-Bills The Government considered that it is i...

364-Day T-Bills The Government considered that it is important to develop government securities market for monetary control. It also had an intention to ensure that government'

Difference between pay-as-you-use and pay-as-you-go methods, Question 1: ...

Question 1: (a) Explain fully the difference between ‘Pay-As-You-Use' and ‘Pay-As-You-Go' methods of financing infra-structural projects. (b) Write short notes on any ONE of

What is bid, Bid The price buyers provide to acquire securities or pri...

Bid The price buyers provide to acquire securities or privacy from sellers.

Pension fund management: a global perspective, Pension Fund Management: A G...

Pension Fund Management: A Global Perspective Pension funds are known worldwide more for their social security element. They have assumed more importance from the day the priva

Objectives of cash management, Q. Objectives of Cash Management? (i) To...

Q. Objectives of Cash Management? (i) To sustain Optimum Cash Balance: - The major objective of cash management is to determine the optimum cash balance required in the busines

Yield spread strategies, Bond market can be classified into various s...

Bond market can be classified into various segments based on the nature of characteristics such as type of issuer (central bank, corporate etc.), credit risk (ris

Capital structure, Modi Wires and Cable Ltd intends to finance its INR 20 m...

Modi Wires and Cable Ltd intends to finance its INR 20 million modernization plan for which it is trying to decide between debt and external equity. The management feels that the e

A/a2, A/A2 is generally the second- or third-highest rating that a rating a...

A/A2 is generally the second- or third-highest rating that a rating agency gives to a security or carrier. This rating indicates that there is a comparatively low risk of default a

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