Apply cost and revenue concepts to calculate contribution, break-even and business implications in IB Business Management SL.
Fishers manufactures baseball caps.
70 % of Fishers’s annual sales occur from April to September. Starting in March, Fishers experiences a significant increase in current assets and current liabilities, which start to decrease in October.
Fishers
Fishers manufactures baseball caps. In 2017, it sold 75000 caps. The variable cost per cap was $ 6. 70 % of Fishers's annual sales occur from April to September. Starting in March, Fishers experiences a significant increase in current assets and current liabilities, which start to decrease in October.
Table 1: Selected data for Fishers for 2017 (figures in \$000s)
Table 2: Selected forecasted financial information for Fishers for 2018
Sales price per cap will remain the same as in 2017.
Using Table 2, calculate the following forecasted figures for 2018:
sales revenue;
total variable costs;
Ritev Enterprises (RE) is a public limited company that owns a chain of 20 gas (petrol) stations. Next year, RE plans to modernize its gas stations by installing self-service pumps.
Ritev Enterprises (RE)
Ritev Enterprises (RE) is a public limited company that owns a chain of 20 gas (petrol) stations. Next year, RE plans to modernize its gas stations by installing self-service pumps.
Table 2 provides selected financial data for RE from:
- the profit and loss account for year ending 31 May 2021
- the balance sheet as of 31 December 2021.
Table 2: Selected financial data for R E
The finance director is concerned about the trend in consumer preference for electric cars and the potential impact of increased numbers of electric cars on RE.
Explain the potential impact of the increasing popularity of electric cars on R E 's costs and revenues.