Discuss the profit projections you have calculated for the 6-month period. Explain that you have produced best and worst case profiles of +/- 10% Specify 2 potential risks/opportunities to the business, which would impact volumes sold.
| Business Plan Analysis and Recommendations |
- Discuss the profit projections you have calculated for the 6-month period.
- Explain that you have produced best and worst case profiles of +/- 10% Specify 2 potential risks/opportunities to the business, which would impact volumes sold.
- Explain the margin of safety you have calculated and what it tells you about your company’s risk.
- Explain how much you need to sell to achieve the target profit of £200,000.
- Show how sensitive your company is to changes in key costs/selling prices by doing what-if calculations illustrating the profit impact of changes of 1 key cost and your selling price.
- Suggest 1 way the company could reduce its losses / increase its profit. Use what-if analysis to show the impact of this change on the profit and margin of safety for the 6 months at expected sales levels.