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Ella's Delicatessen has monthly fixed costs of £1800. She sells her soup for £1.15 a carton. The variable costs per carton are: (raw materials = 45p) and (labour = 20p). Calculate her breakeven output per month (show your workings)
Formula for Breakeven = Fixed costs / (selling price – variable cost). Fixed costs = £1800. Selling price = £1.15. Variable costs = 0.45 + 0.20 = £0.65. Selling price - variable cost = £1.15 – £0.65 = £0.50....
ET
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Evan T.
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Business Studies tutor
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What are the 4Ps in Marketing?
The 4Ps is a model to help businesses with their marketing to make sure it is meeting the customers needs. It's also called the marketing mix. The first P is price, so within this is the different pricing me...
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Rosie F.
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Business Studies tutor
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To what extent do you think that UK businesses will experience a fall in profit if governments limit free trade by adopting protectionist policies?
Protectionist policies that governments may impose ca consist of tariffs, quotas and embargoes. These can lead to a fall in profits for UK businesses to a large extent because they limit and discourage globa...
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Imogen P.
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Business Studies tutor
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Explain how globalisation can increase operational efficiency?
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EA
Answered by
Ella A.
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Business Studies tutor
3717 Views
What is the difference between limited and unlimited liability?
The two concerns the level of responsibility for debts of a business if it happens to fail. Limited liability means that a shareholder can only lose the investment they made into the company if it fails. Lim...
JT
Answered by
James T.
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Business Studies tutor
4360 Views
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