business p2 doubts and notes here

[IGCSE hater!]

does anyone knoe where v can get better practice on p2 business?
and if any of you have doubts post them...v'll try help each other =)

[Skelli]

I dont know about n e sites with business notes other than the ones tht "the winner" posted but i do have some doubts, heres one M/J 04 Question 1 b (i). i saw the mark scheme but i cdnt really understand the method of calculation! it would be great if you could help me.

[Crooked]

I dont know about n e sites with business notes other than the ones tht "the winner" posted but i do have some doubts, heres one M/J 04 Question 1 b (i). i saw the mark scheme but i cdnt really understand the method of calculation! it would be great if you could help me.

Sales 10,000x$20 = $200,000 (1 Mark)
Programme sales 0.1 X 10,000 X $2 = $2,000 (1 mark)
Less Commission $2,000 (1 mark)
Less Overheads $10,000
Less ground hire $2000 (1 mark)
Less hire of acts $100,000
$88,000 (1 mark)

means..10000 tickets were to be sold..wid a price of $20/each. therefore..10000 x $20 = $200000
the programme ticket were sold to 10% of the total ticket holders..i.e..10000 x 10/100 = 1000 ticket holders..and the price per ticket was $2..therefore..$2 x 1000 = 2000
commission paid was 1% of the total sales revenue (price x tickets sold, i.e. $200000). therefore, $200000 x 1/100 = $2000
see the extract..line 4..Candy Shows Ltd. uses the local football ground for all the events. It costs $2 000 per day to
hire.   this is the Fixed cost and must be deducted from the revenue along with overheads.
the hire of acts must also be deducted from the total revenue in order to get the forecast profit..hope yuh understood. =]

[Skelli]

Omg! Thank you sooo much i get it now! =) theres this other question (calculation) that drove me off the wall! M/J 06 question b, its ARR and payback. I just hate those two...

[Crooked]

Omg! Thank you sooo much i get it now! =) theres this other question (calculation) that drove me off the wall! M/J 06 question b, its ARR and payback. I just hate those two...

Year                     0    1     2     3     4     5
New Van             –10  +2   +4   +6   +8  +10
Quicksell contract –20 +10 +10  +10  +10  +10

in the year 0, there won't be any inflows..n the -10 and -20 shown are cost of investment.

for payback of van.. this is the formula yuh need to use : 
  amount required in the year/inflow in the year x 12(for months)
therefore, 10-2-4= 6 . in two years yuh had a net flow of $6000. and now yuh need $4000 more to get back the money invested
what yuh need to calculate now is how much time will it take to earn back the money invested..

so..  4000/6000 x 12 = 8 months.
therefore..it'll take 2 years and 8 months to earn back the money invested.


for ARR of supermarket..first yuh would neeed to calculate the annual profit :
net inflow - investment cost
--------------------------
total number of years


50 - 20
-------         = 6 ; $6000 per annual.
  5 years.           


the formula for ARR is as follows:

annual net profit
---------------      x  100
investment cost

$ 6
----  x 100 = 30%
$ 20



hope yuh understood. =]

[Skelli]

LOL! Thannnkkk yooou sooo much! i didnt know the investments were in year zero! haha and i did get it you made it sound so easy! =)

[Crooked]

LOL! Thannnkkk yooou sooo much! i didnt know the investments were in year zero! haha and i did get it you made it sound so easy! =)

yer welcome. =]

[Skelli]

okay i know im kinda annoying you now, but this will be my last question. hopefully...
Nov 09 Both components the ARR and the payback, this one is kinda different.

[Crooked]

okay i know im kinda annoying you now, but this will be my last question. hopefully...
Nov 09 Both components the ARR and the payback, this one is kinda different.

Investment 60

        Rent from        Loss of Farm
                            income
        Wind4U
Year 1    40             10
Year 2    40             10
Year 3    40             10
Year 4    40             10
inflow per year is 40 ; outflow is 10
           yr 1 = 40-10 = 30; net flow.
yr 2,3 and 4 = ' '   ' '     ' ' '  ' ' '   ' '

total net flow = 30+30+30+30= 120.
for annual profit:
120-60 ( investment cost)
------                         = 15 per annual
4 years


ARR = 15 ( annual profit)
         ----     x 100                  = 25%
         60 (investment cost)


for the other component,
capital cost; investment cost = 5

inflow is 4 per year; outflow is 1
4-1 = net flow is 3 per year

in the first year..yuh'll earn $3000 back.
for payback period..
amnt req
--------    x 12
net flow in the particular year

2
--  x 12 = 8 months.
3

therefore, it'll take 1 year n 8 months to earn back the money invested.

hope yuh understood. =]

[Skelli]

Thanks buddie! Wish you good luck in paper 2! =)

[Crooked]

Thanks buddie! Wish you good luck in paper 2! =)

anytyme ! ace it ! =D