5.4 Will you earn an income?

Quick review
We still need the theory we learned in the previous sections.
Just a couple questions to see if we remember it...
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EconomieMiddelbare schoolhavoLeerjaar 3

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Quick review
We still need the theory we learned in the previous sections.
Just a couple questions to see if we remember it...

Slide 1 - Diapositive

Emily bought 70 shirts to sell in her new clothing shop.
A
Costs of goods sold
B
Operating costs

Slide 2 - Quiz

Justin paid the bill from the landlord, the rent of his shop was € 1200 this month
A
Costs of goods sold
B
Operating costs

Slide 3 - Quiz

Fire insurance premiums are...
A
Fixed costs
B
Variable costs

Slide 4 - Quiz

Packaging material costs are...
A
Fixed costs
B
Variable costs

Slide 5 - Quiz

A company's total costs is € 250,000 when they sell 10,000 products. Variable costs are € 7.50 apiece. Calculate the fixed costs of this company.

Slide 6 - Question ouverte

Robert gives the bank the assignment to transfer money to all employees on the 25th of each month
A
Housing costs
B
Selling/distribution costs
C
Costs of labour

Slide 7 - Quiz

Nellie pays the landlord €500 to fix a broken panel in her shop
A
Housing costs
B
Selling/distribution costs
C
Costs of labour

Slide 8 - Quiz

John wants an advertisment in the newspaper, it will cost him €75.
A
Housing costs
B
Selling/distribution costs
C
Costs of labour

Slide 9 - Quiz

John secured a loan of €300,000 for his enterprise. He has to pay 4.5% interest a year on the outstanding loan. He has to redeem the loan in 30 equal instalments. Calculate the amount of interest John has to pay in the first year.

Slide 10 - Question ouverte

A machine with a total purchase value of €200,000 has a salvage value, after six years, of €20,000. Calculate the yearly depreciation.

Slide 11 - Question ouverte

Discuss homework (5.3)
Q. 31, 32, 35, 37, 40 and 41

Slide 12 - Diapositive

Question

Slide 13 - Diapositive

Chapter 5
5.4 Will you earn an income?

Slide 14 - Diapositive

 Income statement
Profit is an entrepreneur's income

An income statement is a statement of all revenue and costs over a certain period of time

Slide 15 - Diapositive

Slide 16 - Diapositive

Profit
  • Gross profit is the difference between turnover and the costs of goods sold
  • Net profit is the profit that is left after substracting all other costs

Gross profit = turnover - purchase value of items sold
Net profit = gross profit - operating expenses - all other costs

Slide 17 - Diapositive

Slide 18 - Diapositive

Break-even
Break-even point: the turnaround point where an entrepreneur goes from no profit to profit

Break-even sales: the amount of products an entrepreneur needs to sell in order to cover all the costs

Slide 19 - Diapositive

Slide 20 - Diapositive

Homework
Do Q. 45 - 53 from section 5.4

Slide 21 - Diapositive