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Proposal by: Tuqa MahdiDate:01/02/2024

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I scream for Ice-creamBusinessProposal

Changes in Selling Price

Changes in Fixed Costs

Changes in Variable Prices

Break-even

Total sales revenue

Total Costs

Variable Costs

Fixed costs

Index

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.

Fixed Costs

Variable costs

Total Variable Costs = Cost Per Unit x Total Number of Units.
What are the variable costs for the business?

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,

Variable Costs

Variable Costs

Total Costs

Total cost = Fixed cost + variable cost
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 costs

Total Sales Revenue

Total sales revenue = Price × Quantity.
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

Break-even

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 unitHere, the business' break even point would be840/(1.50-0.15)=623 Ice-Creams.Therefore the business would need to sell 623 Ice-Creams

Break-even Point

Changes: Variable prices

How about-20%

What would happen if the Variable cost went up by 20%?

Changes in Variable Price

What would happen if the Variable cost went down by 20%?

Changes in Variable Costs

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