100% tevredenheidsgarantie Direct beschikbaar na je betaling Lees online óf als PDF Geen vaste maandelijkse kosten 4,6 TrustPilot
logo-home
Essay

Unit 2 - P6 + M4 + D3

Beoordeling
-
Verkocht
-
Pagina's
5
Cijfer
A+
Geüpload op
08-02-2021
Geschreven in
2019/2020

illustrate the use of budgets as a means of exercising financial control of a selected company and analyse the reasons why costs need to be controlled to budget and evaluate the problems they have identified from unmonitored costs and budgets

Meer zien Lees minder
Instelling
Vak









Oeps! We kunnen je document nu niet laden. Probeer het nog eens of neem contact op met support.

Geschreven voor

Study Level
Publisher
Subject
Course

Documentinformatie

Geüpload op
8 februari 2021
Aantal pagina's
5
Geschreven in
2019/2020
Type
Essay
Docent(en)
Onbekend
Cijfer
A+

Onderwerpen

Voorbeeld van de inhoud

Looking at the forecast and actual cash flow it is clear where the problems occurred
throughout the year.
When looking at the cash flow forecast, it is clear to see the changes that happened com-
pared to the prediction. There was a 10% increase in wages, materials and machine
power. As well with the deficit of 4000 units, decreasing their revenue by £80,000. It was
more expensive to produce the products, as the price for the goods depends on the units
sold. Due to their poor budgeting skills of the WristBreaker company, they weren't able to
find solutions of where they could save their money, due to the change of the predicted re-
sults, of lower sales and increased variable costs. Thus leading their business to bank-
ruptcy.


The break-even chart uses the calculations from the cashflow forecast from WristBreaker
Company. To calculate the break-even point you need to divide Fixed Cost by (Unit Selling
Price - Unit Cost Price). To then calculate the time it takes to achieve break-point you need
to divide Fixed Costs by (Unit Selling Price -Unit Variable Cost) divided by sales per year
then times by 12.


Forecast Breakeven:
Fixed Cost / (Unit Selling Price
- Unit Cost Price)
63,180 / (20 - 17.5) = 25,272
For the forecast, WristBreaker
expected to achieve break-
even quantity if they sell 25,272
units.


Time: Fixed Costs/ (Unit Selling Price - Unit Variable Costs) / Sales x 12
63,180 / (20 - 17.5) = 25,,600 = 0.752 x 12 = 9 months

, For the forecast, WristBreaker expected to take around 9 months to reach break even
point.


Actual Breakeven:
Fixed Cost / (Unit Sell-
ing Price - Unit Cost
Price)
65,804 / (20 - 19.25) =
87,738
For the actual, Wrist-
Breaker to achieve
break-even quantity if
they sell 87,738 units.


Time: Fixed Costs/ (Unit Selling Price - Unit Variable Costs) / Sales x 12
65,804 / (20 - 19.25) = 87,,600 = 2.964 x 12 = 36 months
For the actual, Wristbreaker would take 36 months to reach break even point.


Overall this can show how badly Wristbreaker is doing, through the visual representation it
is visible to see how long it would take them to achieve breakeven. If WristBreaker would
be going into debt due to the lengthy time it would take them to achieve their breakeven.


Recommend Breakeven:
Fixed Cost / (Unit Selling
Price - Unit Cost Price)
50,604 / (19 - 14.05) =
10,223
For the recommended,
Wristbreaker needs to
achieve break-even
quantity if they sell
10,223 units.


Time: Fixed Costs/ (Unit
Selling Price - Unit Variable Costs) / Sales x 12
€13,11
Krijg toegang tot het volledige document:

100% tevredenheidsgarantie
Direct beschikbaar na je betaling
Lees online óf als PDF
Geen vaste maandelijkse kosten

Maak kennis met de verkoper
Seller avatar
Sophia23

Maak kennis met de verkoper

Seller avatar
Sophia23
Volgen Je moet ingelogd zijn om studenten of vakken te kunnen volgen
Verkocht
4
Lid sinds
4 jaar
Aantal volgers
2
Documenten
28
Laatst verkocht
3 jaar geleden

Selling BTEC Business Essays that I received D*D*D* in!

0,0

0 beoordelingen

5
0
4
0
3
0
2
0
1
0

Recent door jou bekeken

Waarom studenten kiezen voor Stuvia

Gemaakt door medestudenten, geverifieerd door reviews

Kwaliteit die je kunt vertrouwen: geschreven door studenten die slaagden en beoordeeld door anderen die dit document gebruikten.

Niet tevreden? Kies een ander document

Geen zorgen! Je kunt voor hetzelfde geld direct een ander document kiezen dat beter past bij wat je zoekt.

Betaal zoals je wilt, start meteen met leren

Geen abonnement, geen verplichtingen. Betaal zoals je gewend bent via iDeal of creditcard en download je PDF-document meteen.

Student with book image

“Gekocht, gedownload en geslaagd. Zo makkelijk kan het dus zijn.”

Alisha Student

Veelgestelde vragen