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Ice Cream
Tuqa Mahdi
Created on February 1, 2024
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Transcript
I scream for Ice-cream Business Proposal
Proposal by: Tuqa Mahdi Date: 01/02/2024
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Index
Break-even
Fixed costs
Changes in Variable Prices
Variable Costs
Total Costs
Changes in Fixed Costs
Changes in Selling Price
Total sales revenue
Fixed Costs
Fixed Costs
What will be the fixed costs for the shop?
Fixed Costs Fixed Costs remain the same regardless of output levels, they do not change with output, they are not directly related to production examples of fixed costs are: rent, rates, interest payments and salaries. Please refer to the table to the left to be informed on our business' fixed costs.
Variable costs
Variable Costs
What are the variable costs for the business?
Variable Costs
Variable costs are those that change as the amount produced, or the number of customers served, changes. Examples of variable costs include: raw materials. packaging. Our variable costs lie at £0.15 per product,
Total Variable Costs = Cost Per Unit x Total Number of Units.
Total Costs
Total costs
What will be the total costs for running this business?
Total costs in business refer to the full amount of money spent by a business when producing the goods sold in a particular period. It is calculated by adding fixed costs and variable costs together. Fixed costs are costs that remain constant regardless of the level of output, while variable costs change with the level of output. Total cost includes the cost of all the input factors used for producing a certain level of output. The total cost tends to be dynamic.
Total cost = Fixed cost + variable cost
Total Sales Revenue
Total Sales Revenue
What will be the total sales revenue
Total sales revenue is the money received from the sales of any goods or services that a business provides. It is money that is coming into the business, and as such it is a form of income.
Total sales revenue = Price × Quantity.
Break-even
Break-even Point
When does the business stop making a loss without making a profit?
The break even point is when a business does not make a profit OR a loss. Break-Even = Fixed Costs / Contribution per unit Here, the business' break even point would be 840/(1.50-0.15) =623 Ice-Creams. Therefore the business would need to sell 623 Ice-Creams
Changes: Variable prices
Changes in Variable Price
How about-20%
What would happen if the Variable cost went up by 20%?
Changes in Variable Costs
What would happen if the Variable cost went down by 20%?
About us
About us
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Name Surname
Name Surname
Name Surname
Name Surname
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