Scribd
Upload
19 views2 pages

Profit and Loss Calculation Exercises

The document presents five scenarios involving different businesses calculating their profit or loss based on sales, variable costs, and fixed costs. Each scenario provides specific figures for sales price, variable cost, and fixed costs, requiring calculations to determine the financial outcome. The activity aims to assess the ability to perform basic profit and loss calculations.

Uploaded by

mohamedayusuf12378
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
19 views2 pages

Profit and Loss Calculation Exercises

The document presents five scenarios involving different businesses calculating their profit or loss based on sales, variable costs, and fixed costs. Each scenario provides specific figures for sales price, variable cost, and fixed costs, requiring calculations to determine the financial outcome. The activity aims to assess the ability to perform basic profit and loss calculations.

Uploaded by

mohamedayusuf12378
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Activity 10: Calculating Profit and Loss

Answer the 5 questions below to demonstrate your ability to calculate profit and loss.

1. A bakery produces and sells 1,200 muffins each day at £2.50 per muffin. The
variable cost per muffin is £1.75, and the bakery’s fixed costs are £800 per
day. The bakery also spends £100 per day on advertising. Calculate if the
business has made a profit or a loss.

2. A software company sold 600 licenses of its software at a price of £500 per
license. The company's variable cost per license was £150, and its fixed costs
were £200,000. Calculate if the business has made a profit or a loss.

3. A clothing manufacturer produced and sold 5,000 jackets at £40 each. The
variable cost per jacket was £25, and the fixed costs were
£100,000. Calculate if the business has made a profit or a loss.
4. A car manufacturer sold 1,500 cars at a price of £22,000 per car. The
company's variable cost per car was £18,000, and its fixed costs were
£9,000,000. Calculate if the business has made a profit or a loss.

5. A restaurant served 2,250 customers in a month, charging an average of £18


per meal. The variable cost per meal was £12, and the restaurant’s fixed
costs for the month were £9,000. Calculate if the business has made a
profit or a loss.

You might also like