Reference no: EM132994039

Unit 04 Introduction to Quantitative Methods - OTHM Level 4 Diploma In Business Management

T/616/0695

Learning outcome 1: Understand the rules of numeracy.

Learning outcome 2: Be able to make and apply calculations relevant to business.

Learning outcome 3: Be able to use algebraic methods to solve business problems.

Learning outcome 4: Be able to construct and use graphs, charts and diagrams in a business context.

Learning outcome 5: Be able to apply statistical methods to provide business and management information

Learning outcome 6: Be able to apply the laws of probability to find solutions to business problems.

Scenario

You are about to enter the workforce as a consultant for PRT Consulting. As part of the assessment and exercise, you were given problems to answer and then later submit your answer to your team leader.

Task 1 - Numeracy Assessment and Exercise

Instructions

The assessment aims to gauge your numeracy and analytical skills which can be vital in your work as a consultant. You need to answer all the questions. The result of the assessment or exercise can be the basis of the management on the type of training that you will undergo before you can start as a full pledge consultant at PRT Consulting.

Question 1

The following table shows the revenue and expenses of DYI Stores Ltd, a high street chain selling DYI goods.

a. Complete the above table
b. What is the likely profit for 2016? Express your results in standard form
c. Based on the above table, explain the law of probability and calculate is the likelihood of your actual profits being higher than the budgeted profits.

Question 2

Part 1
John sells pushchairs on eBay. He buys the pushchair from China at a wholesale price of £350 and resells them for £450. He also needs to store them before they are buying dispatched so he rented a garage space for £800 a month
a. What is the equation to calculate the profit?
b. How many pushchairs does John need to sell to break even?
c. If John were to sell 23 pushchairs, what would be his profit/loss?

Part 2
Hector has a £1 shop. Everything he sells is sold for £1 and everything he buys cost £0.90. The rent for the store is £2000 a month.
d. What is the equation to calculate the profit?
e. How many items does hector need to sell to break even?
f. If Hector were to sell 15,000 items, what would be his profit/loss

Question 3

Part 1
Mary sells T-shirts in a stall at the shopping centre. When she charges £15 per T-shirt she does not sell anything, however she noticed that every time she reduces the selling prince by £1, sells 15 more t-shirts per hour. A T-shirt cost £4.50 to make and she is charged £130 a day for her stall. Mary opens her stall from 10am to 8pm
a. Write the equation to calculate the maximum profit
b. Using the equation write in a table the price and profit for price ranging from £15 to £3
c. Plot a graph and draw a diagram to represent the profit
d. What is the maximum possible profit? What should be the selling price to achieve it?

Part 2
Lisa sells cherries on the market. On her first day, she charges £4 per punnet and sold 20 punnets. On her second day, she charged £3 per punnets and sold 60. On her third day, she charged £2 and sold 100 and when she charged £1 she sold 140 punnets. She thinks there is a relationship between price and quantity sold and asked you for your help. She told you that she buys the cherries for £0.65 and the stall cost her £60 a day. She also said that she would not mind charging £1.50 or £2.50 but she would not charge £1.75 or £2.25 as it is not practical.

a. Use a table to show the relationship between price and profit/loss
b. Draw a diagram to represent price and profit/loss
c. What is the optimal selling price?

Attachment:- Assignment_Brief.rar