1. 1.3 Estimating Revenues, Costs ad Profits
Costs, Revenue, Profit Different types of Revenue Profit – Gross and Net Cash Flow Forecast Break Even Analysis (Year 11)

2. Finance Keywords

3. Sales from selling food
Revenue
Start Up Costs (once only) eg Equipment, chairs, Fryers, fridges, dishwasher, till
Sales
Running Costs (monthly) – electricity, telephone, gas, stock, packaging, wages
Sales from selling food
Sponsorship
Delivery service
Media Broadcasts
Ticket Sales - events
Finance Keywords
Variable Costs –vary with output eg cost of food, packaging, salt and vinegar
Profit
Fixed Costs – always stay the same not dependant on output eg Rent, electricity, Wages, advertising,
Sales £££ less
or Loss
Costs of Sales £££ equals
Gross profit
Costs
Less Expenses
Net Profit

4. Costs, Revenue, Profit
Objective: Know about costs, revenue and profit in a Business organisation
Create a professional looking leaflet that describes the different costs, revenue and profit a business may encounter.
Include Sales, Sales Volume and how Total Revenue is calculated with examples for a Wedding Car business.
include: start up, running, fixed, variable and total costs with examples for Wedding Car Business
Describe the difference between Gross and Net Profit (show an example calculation)
Explain the impacts of profits and losses on a business
What if the price of petrol increases?
What if the cars cost more than he originally estimated?
What if he didn’t get as many jobs as he expected?
What if competition was so fierce he had to cut his prices?
Test yourself Questions
Over to You Case Study

5. What did we learn? Profit Loss Fixed Costs Variable Costs Revenue
Sales Volume
Total Costs