Worksheets5. Decision Making to Improve Financial Performance
Total questions: 10
Worksheet time: 8mins
The break-even chart below shows details of costs and revenue for a business. At 200 units of output, profit is shown by the distance:
vw
vx
vy
vz
Which of the following sources of finance is used primarily for short-term uses?
Debt factoring
Share capital
Sale of buildings
Venture capital
The following data relates to the financial position of Whittaker plc for the 2016–2017 financial year.
• Revenue: £25 750 million
• Dividends paid: £2 655 million
• Gross profit margin: 24.5%
• Net profit margin: 5.6%
Whittaker plc’s gross profit for the 2015–2016 financial year was:
£1 442.00 million
£148.68 million
£650.48 million
£6 308.75 million
Payables are the value of:
a firm’s overdraft from its bank
inventory held by a business
money owed to a firm by customers
money owed to suppliers by a business
Which of the following will result in an adverse variance?
Actual expenditure on fuel lower than in the budget
Actual raw material costs higher than the budgeted figure
Sales revenue actually received greater than in the budget
Budgeted wages less than actual wages
Which one of these sources of finance may involve the payment of a dividend?
Debt factoring
Loans
Overdrafts
Share capital
A takeaway noodle bar owner believes that she will break-even if she manages to sell 400 takeaway meals per week. The fixed costs of running the bar are £800 per week and each takeaway meal sells for £5. The variable cost per takeaway meal for the owner is
£4
£3
£2.50
£2
The table shows financial information relating to a business in 2014. Based on the above information, the business’s gross profit for 2014 was
£180 000
£100 000
£70 000
£20 000
The formula for calculating break-even output is:
Total Costs/Contribution per unit
Fixed Costs/Contribution per unit
Fixed Costs/Total Contribution
Total Costs - Total Revenue
Which one of the following sources of finance should a business use to solve a cash flow problem?
a 5 year bank loan
a mortgage
an overdraft
venture capital [1
