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# BUSS1 May 20th 2013 watch

1. Oh so thats 5 marks then. Great.
2. What did everyone get for advantages of break-even analysis?
3. How did people define total contribution?

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4. Just calculation.
5. Is the paper out of 80?

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6. (Original post by Tarmu)
What did everyone get for advantages of break-even analysis?
What question was that?
7. (Original post by Frostyjoe)
What question was that?
Think it might have been 'what is meant by break even analysis' I'm not sure, though. I was in a rush
8. Really I can't remember doing that one. Oh god. I had to rush the last question.
9. Advantages of an income budget? I defined it first. (2-3 marks: a financial plan covering future revenue). Then I said it may lead to decreased motivation following after you've hit the targets which decreases work efficiency and decreases chances of more than the 'expected / targeted revenue of £300,000'. After that I said that an income budget only covers revenue and does not account for costs. Therefore you cannot predict profit etc. Also mentioned about adverse/favourable variances and applied to case study as much as I could
10. Break even output = fixed costs / (selling price - variable costs per unit).

You divide the fixed costs by the contribution per unit.

So I think it was 132,000 for fixed costs.

Vcpu should be total variable costs / units sold

And the price was 2.50.

I got 110,000

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11. I only cannot remember half the questions. I think for that one I just said what an Income budget was and then went on and gave like 4 or 5 disadvantages. (Linking it up to him).
12. (Original post by dannyboyrises)
Break even output = fixed costs / (selling price - variable costs per unit).

You divide the fixed costs by the contribution per unit.

So I think it was 132,000 for fixed costs.

Vcpu should be total variable costs / units sold

And the price was 2.50.

I got 110,000

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I did exactly that and got 101,438 something or other. Either way I'll get all but 1 mark for the final answer.
13. (Original post by samboJ)
I did exactly that and got 101,438 something or other. Either way I'll get all but 1 mark for the final answer.
132,000 / 1.30 = 101,538.4615 -> Just done it on my calculator.

Therefore answer is 101,539. You round up because you have not yet broken even if you sell 101,538. You'd still be making a loss. (Albeit miniscule).
14. (Original post by kky_l)
How did people define total contribution?

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I said it was: (total revenue - total variable costs)
15. Well I got 101,538. So yea I think thats right. But I don't think theres any point in tapering your heads about what you got right and wrong because we have a long time to wait and you never know with those essays.
16. (Original post by samboJ)
I said it was: (total revenue - total variable costs)
I think you got it mixed up between gross profit.

I put:

contribution per unit x number of items sold
17. (Original post by Tarmu)
I think you got it mixed up between gross profit.

I put:

contribution per unit x number of items sold
What you have said is correct but you have used contribution in your answer and therefore I don't think you'll get marks.
18. (Original post by samboJ)
What you have said is correct but you have used contribution in your answer and therefore I don't think you'll get marks.
Nope, my teacher said that was fine.
19. (Original post by Tarmu)
Nope, my teacher said that was fine.
Fair enough. You are right.
20. Well I have the book here now and Contribution = Total Revenue - Total Variable costs and thats what I wrote too.

I hope we don't have to write it in words..

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