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

Accounting, Accounting : Many people believe financial management only r...

Accounting : Many people believe financial management only relates to bookkeeping and the establishment of accounting reports which reflect those transactions in the books.  Whi

Finance Homeork question/quote, The management of Border Bank has asked you...

The management of Border Bank has asked you to help with it with its market risk calculations. It has compiled the following data on its financial assets: • $500 million of amorti

Define measures that propose to prevent the recurrence, In an integrated wo...

In an integrated world financial market, a financial crisis in a country can be rapidly transmitted to other countries, causing a global crisis. What kind of measures would you pro

How can funds be raised, How can funds be raised Funds are raised from ...

How can funds be raised Funds are raised from financial markets. Financial markets is a general term used todenote markets where financial securities are teat. These markets in

Show the advantages of irr method, Q. Show the Advantages of IRR Method? ...

Q. Show the Advantages of IRR Method? Advantages of IRR Method:- (i) Similar to the other DCF methods IRR methods as well take into consideration the time value of money.

Explain the three financial factors that influence the value, List and expl...

List and explain the three financial factors that influence the value of a business. The three factors that influence the value of a firm's stock price are timing , cash flow

State the rate of return of a bond - debt securities, Rate of return of a B...

Rate of return of a Bond In case of bonds, rather than dividends, investor is entitled to payments of interest yearly or semi-annually. Investor also benefits if there is an ap

Proper credit management, If a credit manager experience no bad debt losses...

If a credit manager experience no bad debt losses over the past year. Would this be an indication of proper credit management? Why or why not

Credit risk, A bond investor is always exposed to credit risk. Credit...

A bond investor is always exposed to credit risk. Credit risks can be classified into three types. They are: Default Risk Credit Spread Risk

Enumerate the internal development of any business, Enumerate the Internal ...

Enumerate the Internal development of any business or 'organic growth' Business grows using its own internal resources. - Reduces risk of the high cost of integrating cultur

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