Extracts from this document...

Introduction

Name ___________ Form ____ Teacher ____________ Deadline for completion: 19th February 2007 GCSE Business Studies Coursework Unit 3 Will it make a Profit? Finance coursework Task 1: Knowledge The aim of this coursework is to produce a report investigating the possibility of making a profit for my companies' product. The aim of this coursework is to produce a product that will be successful and make a profit. The company I work for will have therefore have the product manufactured by another company and then sold to the company I work for. The business I work for will have to pay fixed and variable costs. I will be using primary and secondary sources to research the costs involved in running my business for my business expenditure. I will have to plan the cost of e.g. electricity, gas and rent. Also I will be working out how much profit I will be making these entire things will help me make my word report. The finance department will be selling products to another business after buying it from the manufactures. I could sell my product at two different prices, I have researched my product and results show that high street shops are selling my product which is a Sony Playstion portable, for around �100.00 to �214.00. After analysing my product I have come to a decision to sell my product between this range. I will be analysing the break even point, I will be looking at issues such as how many products my company will have to sell, and at what price they will be selling the product to make a profit. ...read more.

Middle

This approach is used where a substantial competitive advantage exists. Such high prices are charge for luxuries such as Cunard Cruises, Savoy Hotel rooms, and Concorde flights Product Bundle Pricing. Here sellers combine several products in the same package. This also serves to move old stock. Videos and CDs are often sold using the bundle approach. Task4 Cost Amount per month Amount per year Fixed cost Rent �2,000 �24,000 Salaries �3,200 �38,400 Total fixed cost �5,200 �62,400 Variable cost stock �2,000 �24,000 Gas bills �40 �480 Water bills �60 �720 Raw materials �200 �2400 Wages �900 �1000 Electricity bills �400 �4800 Total variable cost �3,600 �33,400 Semi fixed cost Telephone bills �20 �240 Total semi fixed cost �20 �240 Overall cost �8,820 �96,040 Task 5 Equation * Total cost (total fixed cost + total variable cost) �62,400+�33,400=�95,800. * Total no. of goods produced = 800 * Average cost for making the product 1 product= �96,040 / = �161 I have researched prices of competitors and I have found that other businesses are selling my same product from the price range of �150.00-� 200.00. After analysing these prices I have come to the conclusion that I will be selling my product for �160.00 for my product will be using the product price bundling strategy I will sell my psp and other accessories Break even equation * Break-even equation for the 1st selling price. (Fixed cost/selling price - variable (unit cost) My own break even equation. 1. First selling price �170.00: * �62,400/�170.00-�161= 207 products. ...read more.

Conclusion

Questionnaire. I am doing this questionnaire for my finance business coursework. I will be interviewing a shop owner to find out about his rent bills, gas bills, electricity bills, telephone bills and more. 1. What type of business do you run? * Clothes * Electronics * Retail * Groceries * Other 2. What bills do you pay every month * Telephone bills * Gas bills * Electricity bills * Rent bills * Water bills 3. How much do you pay for your gas bills every month? * �200-�300 * �301-�400 * �401-�500 * �501-�600 4. How much do you spend on stock every month? * �500 * �2,000 * �4,000 * �6,000 * �8,500 5. What colour would you prefer for a psp? * Green * Multi coloured * Black * Pink * White Results table. What type of business do you run? What bills do you pay every month? How much gas bill do you pay every month? How much do you spend on stock every month? What colour would you prefer? Clothes Telephone bills, water bills, gas bills electricity bills. �501-600 �3,000 Black Groceries Water bills, gas bills, electricity bills. �200-300 �500 Pink Electronics Water bills, gas bills, rent bills. �200-300 �8,000 Pink Electronics Telephone bills, water bills, rent bills. �401-500 �8,000 Pink Clothes Telephone bills, water bills, gas bills �301-400 �6,000 White Clothes Gas bills, electricity bills, water bills. �200-300 �6,000 Black Clothes Water bills, gas bills, electricity. �200-300 �4,000 White Clothes Water bills, gas bills, electricity, telephone bills. �501-�600 �2,000 Multi-coloured ?? ?? ?? ?? ...read more.

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.