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    BEQ Activities 2024

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    bertadecastro17

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    BEQ Activities 2024

    Uploaded by

    bertadecastro17
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    BEQ_activities__2024_

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    6 views3 pages

    BEQ Activities 2024

    Uploaded by

    bertadecastro17

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Sharon’s Super Lunches (SSL)

    Sharon’s Super Lunches (SSL) is a cooperative that provides healthy school


    lunches. The lunches are delivered daily to students, who order them online.
    SSL aims for a minimum order size of 50 lunches to deliver to a school.

    Table 2: Sales and other financial information for SSL for one week

    Forecasted sales of lunches 3200

    Maximum sales of lunches 4000

    Price of lunches $10.20

    Variable costs per lunch $6.40

    Fixed costs for SSL $7980

    SSL is considering a new promotional strategy for healthy school lunches: they
    will donate a free school lunch to a student in a lower-income area for each
    lunch purchased in a higher-income area.

    (a) Describe one feature of a cooperative. [2]

    (b) Using total contribution, calculate the forecasted total profit for SSL before
    the introduction of the new promotional strategy (show all your working). [2]

    (c) Construct a fully labelled break-even chart for SSL for before the new
    promotional strategy is introduced (show all your working). [4]

    (d) Explain one advantage to SSL from implementing the new promotional
    strategy. [2]
    Designer Dolls (DD)

    Designer Dolls (DD) is a start-up business that will create hand-crafted unique
    dolls using a job/customized production method. As part of their business
    plan DD undertook a breakeven analysis.

    Table 1: Forecasted figures for DD for the first year of operation

    (a) Describe one limitation of a break-even analysis. [2]

    (b.i) Calculate the number of dolls that DD needs to sell to achieve a profit of
    $4000 (show all your working). [2]

    (b.ii) Calculate the capacity utilization rate at the break-even quantity for DD for
    the first year of operation (show all your working). [2]

    (b.iii) Calculate the profit or loss in the first year if DD sells 400 dolls (show all
    your working). [2]

    (c) Assuming that the quantity of dolls to be sold in the second year is 550 and
    costs remain unchanged, calculate the price per doll that DD would need to
    charge to make a $6500 profit. [2]
    Sock Paradise (SP)

    After conducting primary market research, Pam opened Sock Paradise (SP),
    which sells colourful socks. SP operates a retail stall in a large department store
    and sells online through its own website.

    Table 2 shows selected financial data for SP for 2020.

    Table 2: Selected financial data for SP for 2020

    At the end of 2020, the department store told Pam that it would increase rent by
    $14 000 per year starting on 1 January 2021. Pam forecast total sales for 2021
    as 18 000 pairs of socks; other costs and prices were forecast to remain
    unchanged.

    (a) State two methods of primary market research. [2]

    (b.i) Using the selected financial data in Table 2, calculate for SP for 2020:
    the break-even level of output (show all your working). [2]

    (b.ii) Using the selected financial data in Table 2, calculate for SP for 2020:
    the margin of safety (show all your working). [2]

    (b.iii) Using the selected financial data in Table 2, calculate for SP for 2020:
    the net profit (show all your working). [2]

    (c) Explain how the impact of the increase in rent and the forecast increase in
    sales in 2021 could affect SP’s profitability. [2]

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