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WorksheetsBASC FINANCIAL PLAN FOR BUSINESS START-UP
Total questions: 18
Worksheet time: 33mins
please match the following:
Fixed Costs
Costs that do not change with production
Selling Price
Costs that vary with production volume
Variable Costs
The amount of money you charge customer
Break-Even Point
Sales needed to cover costs
A student group sells RM 10 bubble tea at a school event. Fixed costs (stall rental, permits) = RM 300. Variable cost per cup = RM 4. Calculate the break-even point in units.
45 cups
60 cups
50 cups
80 cups
A student group sells RM 10 bubble tea at a school event. Fixed costs (stall rental, permits) = RM 300. Variable cost per cup = RM 4. Analyze how a 20% increase in variable costs (e.g., sugar price hike) would affect profitability.
48 cups
58 cups
50 cups
60 cups
You’re selling custom tote bags at a school event.
Fixed Costs: RM 150 (printing machine rental).
Variable Costs: RM 8 per bag (materials and labor).
Selling Price: RM 20 per bag.
Goal: Sell 50 bags.
Calculate total income, total costs, and profit.
Income: RM 1,000
Total Costs: RM 150
Profit: RM 450
Income: RM 1500
Total Costs: RM 50
Profit: RM 50
Income: RM 1500
Total Costs: RM 500
Profit: RM 450
Income: RM 1000
Total Costs: RM 550
Profit: RM 450
Scenario:
You’re selling custom tote bags at a school event.
Fixed Costs: RM 150 (printing machine rental).
Variable Costs: RM 8 per bag (materials and labor).
Selling Price: RM 20 per bag.
Goal: Sell 50 bags. How many bags must you sell to break even?
13 bags
14 bags
10 bags
15 bags
Scenario:
You’re selling custom tote bags at a school event.
Fixed Costs: RM 150 (printing machine rental).
Variable Costs: RM 8 per bag (materials and labor).
Selling Price: RM 20 per bag.
Goal: Sell 50 bags. What is the new profit if you reduce costs to RM 6 per bag?
RM 550
RM 450
RM 500
RM 600
Scenario:
Amina sells cupcakes at school events. Her fixed costs are RM 200 (equipment rental), and variable costs are RM 3 per cupcake (ingredients and packaging). She sells cupcakes for RM 8 each and plans to sell 100 units. Calculate her total profit.
RM 500
RM 300
RM 400
RM 600
Scenario:
Amina sells cupcakes at school events. Her fixed costs are RM 200 (equipment rental), and variable costs are RM 3 per cupcake (ingredients and packaging). She sells cupcakes for RM 8 each and plans to sell 100 units. If Amina’s sales drop to 80 cupcakes, how will this affect her profit? Explain the implications.
Scenario:
Amina sells cupcakes at school events. Her fixed costs are RM 200 (equipment rental), and variable costs are RM 3 per cupcake (ingredients and packaging). She sells cupcakes for RM 8 each and plans to sell 100 units. Propose a solution to maintain her original profit target of RM 300 despite lower sales.
Scenario:
Zara’s budget for selling handmade bracelets:
Income: RM 600 (selling 60 bracelets at RM 10 each).
Expenses: RM 150 (materials) + RM 100 (marketing).
Profit: RM 350. Tasks:
a) Identify two errors in Zara’s budget.
b) Recalculate the profit with corrected expenses (add RM 50 for event fees and RM 5/unit labor cost).
c) Suggest how Zara can still achieve her RM 350 profit target.
A company’s cash flow statement shows a negative cash flow from operating activities but a positive cash flow from financing activities. What does this indicate?
The company is profitable but has high debt.
The company is struggling to generate cash from its core operations but is borrowing money.
The company is investing heavily in new equipment.
The company is paying dividends to shareholders.
Which of the following transactions would appear in the "Cash Flow from Investing Activities" section of a cash flow statement?
Purchasing new machinery for the factory.
Issuing shares to raise capital.
Paying salaries to employees.
Receiving cash from customers.
A company’s income statement shows a gross profit of RM 50,000 and operating expenses of RM 30,000. If the company has no other income or expenses, what is its net profit?
RM 30,000
RM 50,000
RM 20,000
RM 80,000
Which of the following would NOT appear on an income statement?
Revenue from sales.
Depreciation expense.
Cash balance at the end of the year.
Cost of goods sold.
A company’s balance sheet shows total assets of RM 500,000 and total liabilities of RM 300,000. What is the owner’s equity?
RM 200,000
RM 300,000
RM 500,000
RM 800,000
Which of the following is a current asset?
Land owned by the company.
A loan payable in 5 years.
Inventory ready for sale.
Machinery used in production.
A company’s income statement shows a net profit of RM 100,000, but its cash flow statement shows a decrease in cash. What could explain this discrepancy?
The company has high non-cash expenses like depreciation.
The company has high accounts receivable (customers haven’t paid yet).
The company has invested heavily in new equipment.
All of the above.
If a company’s balance sheet shows an increase in accounts receivable and its income statement shows an increase in revenue, what does this imply?
The company is collecting cash from customers faster.
The company is selling more but not collecting cash yet.
The company is reducing its inventory.
The company is paying off its debts.
