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WorksheetsEnterprise and Marketing - Learning Outcome 2: Understand what makes a product or service financially viable
Total questions: 45
Worksheet time: 28mins
What assumption does this statement say "Break even is 54 units"?
if we sell 55 we aren't making a profit
if we sell 54 we begin to make a profit
if we sell 55 we begin to make a profit
if we sell 54 we are not yet at break even point
What is the break-even point in units for a company whose total fixed costs are £275,450; selling price per unit is £16; and variable cost per unit is £14.75?
220,360
150,300
183,633
225,120
We are going to manufacture Whats-Its. The Whats-It machine costs £4000.It also costs £5 for materials and labour for each Whats-It. We are planning to sell our Whats-Its for £12 each. How many Whats-Its must we sell in order to breakeven?
571.42
572
570. 63
571
What is the break-even point in units for a company whose total fixed costs are £275,450; selling price per unit is £16; and variable cost per unit is £14.75?
220,360
150,300
183,633
225,120
Fixed costs: = £30,000
Variable cost: = £200 per photo shoot
Forecast output (Sales): = 140 photo shoots
Selling price: = £1000 per photo shoot
What is the Total Contribution?
£112 000
£112 500
£375
£800
Simon has worked out the following figures for new Bobble Hats he is going to sell. He estimates that he can produce 20 000 hats a month with a selling price of £3.50. He expects the machinery costs to be £60 000 per annum, staff salaries are £72 000 per annum and raw materials cost £30 000 per month.
What is the margin of safety?
66 000
74 000
200 000
174 000
Baljeevans Burgers has sales of 250 units, a sales revenue of £26 500, total variable costs of £12 340 and total fixed costs of £4 600 (all annual figures).
Calculate the Total Contribution
£56.64
£14 160
£14 410
£566.40
Baljeevans Burgers has sales of 250 units, a sales revenue of £26 500, total variable costs of £12 340 and total fixed costs of £4 600 (all annual figures).
Calculate the Contribution per unit
£56.64
£14 160
£14 410
£566.40
Baljeevans Burgers has sales of 250 units, a sales revenue of £26 500, total variable costs of £12 340 and total fixed costs of £4 600 (all annual figures).
Calculate the Profit or Loss
£9 560
£95 600
£662 5000
£660 8060
Baljeevans Burgers has sales of 250 units, a sales revenue of £26 500, total variable costs of £12 340 and total fixed costs of £4 600 (all annual figures).
Calculate the Profit or Loss
£9 560
£95 600
£662 5000
£660 8060
Calculate the total contribution from the first 100 customers
£65
£650
£6 500
£65 000
Calculate the Break Even Quantity
65
650
365
3 650
Calculate the expected profit from the first year of trading, based on the assumption that it will attract 450 customers.
£552
£55 250
£5 525
£37 225
£29 250
Fixed Costs £42 525
Variable Costs £3 per Item
Forecast Output (Sales) 11 262
Sales Revenue £135 144
What is the Break Even?
4725
12
5000
None of these
What are Fixed Costs?
the amount of money allocated for a business to use in certain departments
business costs, such as rent, that do not vary because of the amount of goods produced
costs that change depending upon the output
the point in a business when the profits are equal to costs
Which of the following calculations would you use to find total costs?
Fixed Costs + Variable Costs
Selling Price – Fixed Costs
Total Fixed Costs / Selling Price – Variable Cost
Total Fixed Costs/Variable Cost Per Item
If there was a rise in variable costs what effect would this have on the break even chart?
total cost line pivots downwards
fixed cost line and total cost line move upwards in a parallel shift
total cost line pivots upwards
revenue line pivots upwards
If there was a fall in fixed costs what impact would this have on the break-even output?
smaller output is necessary to break-even
break-even is achieved at a lower level of output
greater output necessary to break-even
break-even is reached at a higher level of output
If average variable cost is £10, and average selling price is £25, then what is contribution?
£35
£15
£-15
£40
What is a cost?
Something the company receives
The price of a product
Something the company must pay
Something the company sells
Which 3 of these are costs?
Fixed
Variable
Operating
Revenue
Which cost is Fixed?
Sandwiches
Ingredients
Utilities
Stock
What is a variable cost?
A cost which does not change
A cost which they must pay even if they produce nothing
A cost which changes the more or less the business produces
A cost the business pays when they start
If Sam's Sandwiches use 25p of material for each sandwich, what will be their variable costs for 10 sandwiches
10 x 0.25 = £2.50
2.5 x 10 = £25
25 x 10 = £250
0.25/10 = 2.5p
What is the formula for Revenue?
Total Sales + Costs = Revenue
Number of Sales x Price per unit = Revenue
Price per unit x Total Costs = Revenue
Number of Sales - Total Costs = Revenue
If Wendy sells 50 hot dogs at £2 each. What is her revenue?
£250
£100
£120
£52
If Saleem makes £250 from selling fresh juice, £80 from selling ice creams, £95 from selling lollies and pays £30 to his assistant, what is his total revenue?
£395
£425
£455
£250
How do you calculate revenue?
sales x price
price x cost
cost + sales
sales - total price
How do you calculate "total variable cost"?
variable cost per unit
variable cost per unit + expenses
revenue x variable cost per unit
sales x variable cost per unit
How do you calculate "Total Costs"?
fixed costs x sales
sales + variable costs
variable costs + fixed cost
variable cost x fixed cost
If Illuminate Lights Ltd sells 20,000 light bulbs at £2 each, what will their sales revenue be?
£20,000
£40,000
£30,000
£50,000
Revenue (minus) _____
