Essays on Small Business Finances Assignment

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The paper "Small Business Finances" is an outstanding example of a business assignment. Small businesses require money to operate. As long as you are careful with your spending there is no need to keep track of business costs. If money needs to be spent you have to spend it. Do you agree? The answer, No. this is because there is a possibility that some costs can be neglected and it can be difficult to plan for costs in an accurate manner based on the current understanding of costs. Assessment Activity 2 Job Sheet Employee: Tom Smith Date: 11/10/2010 Mario Services Plumbing Job Sheet     Start/Finish Job Name Task Client Admin hrs Direct Labor hrs 8.30 am 9.00 am administration n/a n/a 0.5 0.5 9.00 am 1.00 pm plumbing Install hot water service Mr.

Green   4 1.00 pm 5.45 pm plumbing Fix leaks in internal plumbing Mrs. Jones   4.75               TOTAL         0.5 8.75 Job Cost form for Job 1 Date: 11/10/2010 Mario Plumbing Services Job Cost Form   Refer to form Direct labor Hours Direct materials Total Applied Overhead Rate Total Qty   JS 0934 TS 4 £ 900 £ 225               £ 900                           Job cost form for job 2 Date: 11/10/2010 Mario Plumbing Services Job Cost Form   Refer to form Direct labor Hours Direct materials Total Applied Overhead Rate Total Qty   JS 0935TS       1 £ 50 £ 50         £ 50                           Assessment Activity 3 calculation of breakeven point BEP = Total fixed cost/(unit sales price-unit variable cost) Where: Total Fixed Costs= £ 15000 Total Unit Sales price= £ 24 Total unit variable cost=£ 6 BEP=15000(24-6) = 833.33 or 834 units. The owner is considering increasing the selling price of his 3-D glasses.

How many units would need to be sold to allow his business to break-even if the price was raised to £ 30? Let the selling price = x BEP =834, Fixed Cost=£ 15000, Unit cost price=£ 30 15000/(x-30) =834; 15000=834x-25020 40020= 834x X= £ 47.98 Is there a reason why the owner might not raise the price of the 3-D glasses? There is no reason because the cost of a unit product has risen which will result in a change in break-even point if the cost is not raised.

References

Fullen, S, L, 2005, How to write a great business plan for your small business in 60 minutes or

less. Ocala, Fla: Atlantic Pub. Group.

Knowles, R, A, & Castillo, C, 2011, Small business: An entrepreneur's plan. Toronto: Nelson

Education.

Zacharakis, A, Spinelli, S, Timmons, J, A, & Timmons, J, A, 2011, Business plans that work:

A guide for small business. New York: McGraw-Hill.

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