P6 Illustrate the Use of Budgets as a Means of Exercising Financial Control of a Selected Company
Budgets & Break-even analysis.
P6 Illustrate the use of budgets as a means of exercising financial control of a selected company
Fixed Costs- The running costs of a business such as rent and wages.
Variable Costs- Costs that varies with the level of output or sales.An example of a variable cost would be direct labor costs.
The breakeven point to two decimal places is 6.12 (£68)
| Fixed Cost | Variable Costs | Total | Revenue | Profit/Loss | 0 | 416 | 0 | 416 | 0 | -416 | 1 | 416 | 12 | 428 | 80 | -348 | 2 | 416 | 24 | 440 | 160 | -280 | 3 | 416 | 36 | 452 | 240 | -212 | 4 | 416 | 48 | 464 | 320 | -144 | 5 | 416 | 60 | 476 | 400 | -76 | 6 | 416 | 72 | 488 | 480 | -8 | 7 | 416 | 84 | 500 | 560 | 60 | 8 | 416 | 96 | 512 | 640 | 128 | 9 | 416 | 108 | 524 | 720 | 196 | 10 | 416 | 120 | 536 | 800 | 264 |
Three ways in which the Hotel Excellent can attract more customers for 2011 and reasons why the method would be effective: 1) Cut down on the variable and fixed costs. The hotel’s costs have risen which has resulted in more loss than profit, therefore if the hotel lower their costs there may be more room for profit. The hotel could get their supplies from cheaper suppliers, could switch companies for their electricity, gas, water and lay off staff if a high volume of staff is not essential. 2) To increase sales the Hotel Excellent could advertise and promote themselves more; this will bring publicity and attention to the hotel. Advertising is essential if you want to communicate to a specific audience therefore if the Hotel Excellent advertised on an online holiday booking website it could bring in customers from outside the local area, internationally and nationally. 3) Improve each component of the marketing mix. If the Hotel Excellent where to improve the service, promotion, price, people, process and physical evidence of their business then they will see drastic improvements to their level of
P6 Illustrate the use of budgets as a means of exercising financial control of a selected company
Fixed Costs- The running costs of a business such as rent and wages.
Variable Costs- Costs that varies with the level of output or sales.An example of a variable cost would be direct labor costs.
The breakeven point to two decimal places is 6.12 (£68)
| Fixed Cost | Variable Costs | Total | Revenue | Profit/Loss | 0 | 416 | 0 | 416 | 0 | -416 | 1 | 416 | 12 | 428 | 80 | -348 | 2 | 416 | 24 | 440 | 160 | -280 | 3 | 416 | 36 | 452 | 240 | -212 | 4 | 416 | 48 | 464 | 320 | -144 | 5 | 416 | 60 | 476 | 400 | -76 | 6 | 416 | 72 | 488 | 480 | -8 | 7 | 416 | 84 | 500 | 560 | 60 | 8 | 416 | 96 | 512 | 640 | 128 | 9 | 416 | 108 | 524 | 720 | 196 | 10 | 416 | 120 | 536 | 800 | 264 |
Three ways in which the Hotel Excellent can attract more customers for 2011 and reasons why the method would be effective: 1) Cut down on the variable and fixed costs. The hotel’s costs have risen which has resulted in more loss than profit, therefore if the hotel lower their costs there may be more room for profit. The hotel could get their supplies from cheaper suppliers, could switch companies for their electricity, gas, water and lay off staff if a high volume of staff is not essential. 2) To increase sales the Hotel Excellent could advertise and promote themselves more; this will bring publicity and attention to the hotel. Advertising is essential if you want to communicate to a specific audience therefore if the Hotel Excellent advertised on an online holiday booking website it could bring in customers from outside the local area, internationally and nationally. 3) Improve each component of the marketing mix. If the Hotel Excellent where to improve the service, promotion, price, people, process and physical evidence of their business then they will see drastic improvements to their level of