pc task 11,12
TRANSCRIPT
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Task Sheet 11
Sales Calculation
Price
Copies Produced 50,000
Advertising Expenditure £120,000
Distribution
Mail order put 1 in box
Newagents put 2 in box 1
Type of magazineMainly stories put 1 in box
Mainly pictures put 2 in box 1
If free gift included, put 1 in box
Total Demand for your magazine is #N/A Copies
Copies Produced 50,000
Copies Sold #N/A Copies
Profit Calculation
Copies produced 50,000
Variable cost per copy £0.20
Total Variable cost £10,000
Fixed Costs £100,000
Advertising Costs £120,000
Free gift 0
Total Free gift Cost £0
Distribution Costs
Per copy sold £0.10
Copies Sold #N/A
Total Distribution Costs #VALUE!
Total cost #VALUE!
Sales Revenue #N/A
Net Profit #VALUE!
Enter the decisions that you have made in the yellow boxes. The spreadsheet changes to indicate the salesof your magazine and the profit (or loss) that you have made. Then click on the profit & loss account tag atthe bottom of the page. This will show you your costs and revenues in more detail. You must thencomplete the boxes which help describe what the profit and loss account shows.
SALES CALCULATION AND THE PROFIT AND LOSS ACCOUNT
The table on the right shows you howmuch profit or loss you have made onyour first issue. If your sales revenue isgreater than your total cost of
production, then you have made a net profit.
If your total cost is greater than your
revenue, then you have made a loss.You will need to have some goodreasons or excuses to explain why youhave lost money on issue 1!
The table on the left shows your productiondecisions and how many copies of issue 1 youhave sold.If the total demand for the magazine is greater than the copies produced, then readers wantedto buy a copy but could not, since you did not
produce enough. If demand is less thancopies produced, then you have unsoldmagazines to get rid of!
Now click on the Profit and Loss Account tag below to look in more detail at your costs and revenues
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Task Sheet 12
Use the text boxes to explain what the terms mean, or how they are calculated.
Sales Revenue #N/A
Variable production costs £10,000 Ink, paper, staples, packaging
Promotion cost (free gift) £0
Distribution cost ### Cost of getting magazines to readers
Total cost of sales ###
Cost of Sales
Gross Profit ###
Gross profit calculated by:
Fixed Costs
Factory Fixed Costs £100,000
Advertising £120,000
Total Fixed costs £220,000
Net Profit ###
Net profit calculated by:
Appropriation AccountThe appropriation account shows what happens to a firm's
This can be 'appropriated' (used) in 3 main ways:
1. Tax ###
Tax is paid to the on the firm's
2. Dividends ###
Dividends are a share of the profit paid to
3. Retained Profit ###
THE PROFIT AND LOSS ACCOUNT
Retained profit can be used for:
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