Добавил:
Upload Опубликованный материал нарушает ваши авторские права? Сообщите нам.
Вуз: Предмет: Файл:
Копия умк деловое общение .doc
Скачиваний:
0
Добавлен:
01.04.2025
Размер:
2.57 Mб
Скачать

13. Setting up a business

Look at the four formulae below and then complete the spaces in the conversation below.

Contribution = sales revenue – variable costs

Profit = Total value of contribution – total costs; or

Profit = Revenue – {variable costs + fixed costs}

Break-even volume of production =

fixed costs

unit contribution

Teacher:

All products sold should make a contribution to the business.

Student:

What is contribution?

Teacher:

It is the total selling price of all goods sold by the company, (1) sales revenue , less (2) __________ __________ .

Student:

So, it’s like margin.

Teacher:

Yes, it’s the same as the gross profit margin. But, to calculate profit, you have to consider (3) __________ costs. In other words, the total value of contributions less (4) __________ and (5) __________ costs.

Student:

I see. And when you’ve made enough contributions, you reach your break-even point.

Teacher:

Yes, that’s right. Then you start to make profit.

Student:

How do you calculate the break-even point?

Teacher:

You have to divide the (6) __________ __________ by the (7)__________ __________ or the contribution made by a single item that you sell.

Student:

So if you raise your price, you increase the value of the contributions.

Teacher:

Yes, but you must not raise your price so much that you lose sales. If demand is (8) __________ , sales may fall.

14. Overheads

Here as a list of 16 fixed cost items. Categorize them according to the headings given below.

accountancy fees

leasing of computers

books, newspapers

mortgage payments

car and van hire

professional indemnity insurance

car hire purchase agreements

rent

electricity account

salaries

employee National Insurance contributions

secretarial support

employer’s liability insurance

stationery and printing

equipment, machinery

telephone

Services Employee costs

electricity account

Insurance Administration

Property Professional fees

Vehicles Equipment

Miscellaneous costs

Miscellaneous means anything that does not fit easily into any of the given categories. Miscellaneous costs, therefore, are any other costs not already mentioned.