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

Financial maket, knowledge of financial market is power discuss

knowledge of financial market is power discuss

Introduction to fixed income portfolio management strategies, Investors use...

Investors use two management strategies to manage their fixed income portfolios. They adopt either active management strategy or passive management strategy. A

Facts about mortgages, Lenders in the US insist upon ...

Lenders in the US insist upon some kind of mortgage insurance. There are broadly two types of mortgage insurance - one is

What is over capitalization, Question 1 What is over capitalization? How d...

Question 1 What is over capitalization? How do we know over capitalization has occurred? Question 2 Explain permanent and temporary working capital Question 3 A. What ar

Under what circumstances is a warrant''s value high, Under what circumstanc...

Under what circumstances is a warrant's value high ?  Explain. A warrant's value would be elevated when the stock price, time to expiration, and/or expected stock price volatil

Does high operating leverage always mean high business risk, Does high oper...

Does high operating leverage always mean high business risk?  Explain. High operating leverage doesn't always mean high business risk.  If the company's sales are quite steady

Global bonds, These are bonds which are offered within the euro marke...

These are bonds which are offered within the euro market and several other markets simultaneously. Unlike Eurobonds, global bonds can be issued in the same curren

Assignment, Imagine you have been allocated $100,000 which is to be investe...

Imagine you have been allocated $100,000 which is to be invested in 8 companies listed on the Australian Stock Exchange (ASX). You are required to have a balanced portfolio betwee

Default risk, Default risk is the risk that arises when the iss...

Default risk is the risk that arises when the issuer is not able to satisfy the terms and conditions of the obligation with respect to timely pa

Longer-term bonds and short-term bonds, Questions How is a bond like...

Questions How is a bond like a loan?                                               How does an investor receive a return from buying a bond?  Does a bond's yield to ma

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