Calculate the profit or loss in each case below: (a) Fixed costs: £9000 rent, £4000 insurance
Variable costs: £4500 wages, £500 delivery costs and £4000 in raw materials
Sales revenue: 1,500 units expected to sell at £25 each

(b) Fixed costs are £26,000 per year, and variable costs include wages at £10 per
unit, raw materials at £12 per unit and delivery/packaging at £3 per unit. It is expected that a business will make and sell 750 units during the year, with
a selling price of £26.

(a) Th profit is £13,500.

(b) The loss is £25,250.

Explanation:

(a) Calculate the profit or loss

This can be calculated as follows:

Total fixed cost = Rent + insurance = £9000 + £4000 = £15,000

Total variable cost = wages + delivery costs + raw materials = £4500 + £500 + £4000 = £9,000

Total cost = Total fixed cost + Total variable cost = £15,000 + £9,000 = £24,000

Sales revenue = Units expected to sell * Price per unit = 1,500 * £25 = £37,500

Profit or loss = Sales revenue - Total cost = £37,500 - £24,000 = £13,500 profit

(b) Calculate the profit or loss

This can be calculated as follows:

Fixed cost = £26,000

Total variable cost = wages + raw materials + delivery costs  = (£10 * 750) + (£12 * 750) + (£3 * 750) = £18,750

Total cost = Total fixed cost + Total variable cost = £26,000 + £18,750 = £44,750

Sales revenue = Units expected to sell * Selling price per unit = 750 * £26 = £19,500

Profit or loss = Sales revenue - Total cost = £19,500 - £44,750 = £25,250 loss

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi