Eric Asare unit 3 m1
Task 4 (M1)
The name of the business:
Papa’s designer shop
Why is cost important to my business? (How do the following
costs affect your business?)
Fixed costs: fixed cost a cost that never changes. Fixed Cost is important
in my because my expenses have to be paid by my business examples of
my fixed costs are utilities such as the rent, phone bill electricity, gas, and
so more
Variable costs: Variable costs are the cost that changes depending on
the output. Variable Cost is important to my business because it records
how the business is doing whether is in recession or just developing
Running costs: Running cost is important because it keeps the business
going.
start-up cost running cost operating cost
chairs petrol advertisement
shoes transport gas
clothing's gas electricity
uniform electricity salary's
clothing hangers Supplies delivery service
shelves tax
boxes
security camera
Why is revenue important to my business? Revenue is important in
my business because I can receive income from the business activities
which will keep the business going
How do you plan on increasing your revenue in your business? To
increase my revenue on my business I need to sell more products, sell
new products or sell products at a higher price to get more money e.g. if
the government need more money they raise the amount for tax or fees.
What are you going to do to maximise profits for your business?
Thing that could be done to maximise profit in my business are getting
products from a cheaper supplier and then have a buffer stock or if my
1 | Page
Task 4 (M1)
The name of the business:
Papa’s designer shop
Why is cost important to my business? (How do the following
costs affect your business?)
Fixed costs: fixed cost a cost that never changes. Fixed Cost is important
in my because my expenses have to be paid by my business examples of
my fixed costs are utilities such as the rent, phone bill electricity, gas, and
so more
Variable costs: Variable costs are the cost that changes depending on
the output. Variable Cost is important to my business because it records
how the business is doing whether is in recession or just developing
Running costs: Running cost is important because it keeps the business
going.
start-up cost running cost operating cost
chairs petrol advertisement
shoes transport gas
clothing's gas electricity
uniform electricity salary's
clothing hangers Supplies delivery service
shelves tax
boxes
security camera
Why is revenue important to my business? Revenue is important in
my business because I can receive income from the business activities
which will keep the business going
How do you plan on increasing your revenue in your business? To
increase my revenue on my business I need to sell more products, sell
new products or sell products at a higher price to get more money e.g. if
the government need more money they raise the amount for tax or fees.
What are you going to do to maximise profits for your business?
Thing that could be done to maximise profit in my business are getting
products from a cheaper supplier and then have a buffer stock or if my
1 | Page
