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Topic: Business
Number of pages / Number of words: 2 / 424
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Problems-too much stock

  • Money tied up
  • Stock wont sell
  • Lose customers

Increase in Variable cost (affects to break-even)

  • Break even would rise
  • Need to sell more
  • Context could include new break even point

Leading to

  • Reduce prices to sell more
  • Increase prices to make more
  • Reduce fixed costs

BREAK EVEN POINT= Fixed cost

-----------------------

(Selling price-variable cost)

Break-even analysis

  • Identifies sales levels required for profit
  • Establish break even at different cost/sales structures

Profit and loss account will show the profit within the business and the overheads of the business...


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Purchase order

Delivery note

Goods received note

Invoice

Statement of account

Cheque

-------------------------------

Problems-too much stock

  • Money tied up
  • Stock wont sell
  • Lose customers

Increase in Variable cost (affects to break-even)

  • Break even would rise
  • Need to sell more
  • Context could include new break even point

Leading to

  • Reduce prices to sell more
  • Increase prices to make more
  • Reduce fixed costs

BREAK EVEN POINT= Fixed cost

-----------------------

(Selling price-variable cost)

Break-even analysis

  • Identifies sales levels required for profit
  • Establish break even at different cost/sales structures

Profit and loss account will show the profit within the business and the overheads of the business...


Essay fragment

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