U3 W3 L2

• InkoopLogistiek
• MBO
• Studiejaar 3

Unit 3 Business Finance

Week 3 Les 2

DAMMR

Good afternoon

Program

• Welcome back
• Question yesterday
• Overview
• Lets get to work
• 
  
• Ending

Unit overview -> Scheme of work

Input final report:

P1 - Sources and suitability of finance - Today

P2 - Sources and suitability of revenue - Past week

P3 - Purpose of financial planning tools

Exam form

P4 - Perform appropriate calculations - BE Current week (CFF next week)

P5 - Prepare and interpret financial statements

P6 - Ways to improve profitability, liquidity and efficiency

Break-even-point

REP: Break-even (point)

Yesterday we made a start, questions?

P159 Car Wash -> Answer on Teams.

The break-even point was the point, 

where you don't make loss nor profit.

Fixed costs (year): $8400                         BEP= 8400:(12.50-5.50)=

Sales per unit: $12.50                                                           1200 (pcs) 

Costs per unit: $4.50 + $1 = $5.50           You need to sell 1200 to                                                                                  play break-even

REP: Break-even chart

Fixed costs=

8400 p/year.

Variable costs=

5.5x

Total costs=

8400+5x

Total revenue

12.5x

BEP?

BEP:1200, actual sales:1500

Margin for safety

= actual sales in units - break -even level of output

''Margin of safety is how much output or sales level can fall before a business reaches its break-even point.''

Example: You washed 1500 cars.

Margin for safety?

BEP: 1200

1500-1200= 300

BEP:1200, actual sales:1500, margin of safety

Lets get to work

Questions? Do you know how to draw a BE Chart?

Till 13:30, work on the case on page 161. 

Cheltenham Coffee 1,2,3 and if possible 4. 

(make a new chart for 4)

I'll discuss the answer when we'll come back.

On a scale of 1-10, I understand the subject Break-Even:

110

Ending

P4:

• Break even
• Break even point
• Break even amount
• Margin of safety

• Charts?