Calculate the additional weekly profit the business would make if it produced and sold 5000 novelty mugs every week.
Selling price of novelty mug= £4; Cost of making mug= £2; Distribution cost= £50 for every 100 mugs sold. Therefore, 1) 5000 x £4= £20,000; 2) 5000 x £2= £10,000 3) £20,000- £10,000 = £10,000; 4) 5000/100= 50; 5) 50 x 50= £2,500; 6) £10,000- £2,500=£7,500
JB
Related Business Studies GCSE answers
All answers ▸Give one example of secondary research and explain 2 of its disadvantages.
Provide one reason why a business may decide to create a sales forecast.
Could you explain to me the advantages and disadvantages of crowd funding to a business as a long term source of finance
The Marketing Mix is a useful tool made up of four elements called the four P's. Define the four P's with examples.