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AS2.4 Profitability

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AS2.4 Profitability

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About this activity

Reasons for increases/decreases and improvements

Created by

Katie McGuinness
Katie McGuinness
New Zealand

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AS2.4 Profitability
 

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AS2.4 ProfitabilityOnline version

Reasons for increases/decreases and improvements

by Katie McGuinness
1

For every $1 of , on , $1 . 20 is to the price to get the price for Kate ? s Kraft s

2

For every $1 of , 39 cents of sales Gross profit , and is left to cover for Kate ? s Krafts .

3

MARK UP % will increase if
- the price .
This increases the margin on each item sold . Or ?
- Found a supplier ( Decrease ) and kept the selling price the same .
- selling more marked - up items

4

GROSS PROFIT % will decrease if :
- Sales ( decrease mark up and therefore selling price decreases ) , This is assuming COGS remains the same
- has prices so increases

5

IMPROVE ADMIN EXPENSE % by
- Finding a insurance provider
- Using more energy efficient in the or find a cheaper supplier of
- Follow up promptly to bad

6

DISTRIBUTION EXPENSE % will increase if :
- Petrol prices , increasing fees
- prices increased
- shop increased
- staff wages increased

7

TO IMPROVE FINANCE COST %
- Find a bank that has a interest rate
- a better rate with current bank
- invests and uses to off liabilities so pay interest
- Sell off surplus . Use to pay off so pay less interest

 
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