Assignment Cover Sheet

This must be completed and added to the front of every assignment

Learner Name WENDY YVANA DJANDA MONEBOULOU

Learner Registration
No.
Study Centre Name C3S BUSINESS SCHOOL
Qualification Title DBM

Unit Reference No.

Unit Title INTRO TO QUANTITATIVE METHODS

Word Count

Submission Date 13 OCTOBRE

Declaration of authenticity:
1. I declare that the attached submission is my own original work. No significant part of it has been
submitted for any other assignment and I have acknowledged in my notes and bibliography all written
and electronic sources used.
2. I acknowledge that my assignment will be subject to electronic scrutiny for academic honesty.
3. I understand that failure to meet these guidelines may instigate the centre’s malpractice procedures
and risk failure of the unit and / or qualification.

_________________ _________________
Learner signature Tutor signature
Date: 13/10/2020 Date:

UNIT 4: Introduction to quantitative methods

TASK 1
a- The above table:

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Revenue Expenses Actual profits Budgeted profits
2013 £ 316 449 668,60 £ 313 395 191,59 £ 3 054 477,01 £ 3 046 000,00
2014 £ 354 423 628,83 £ 344 734 710,74 £ 9 688 918,09 £ 9 561 000,00
2015 £ 396 954 464,29 £ 379 208 181,82 £ 17 746 282,47 £ 18 115 000,00

  Budgeted Revenue Budgeted Expenses Actual profits

- 2016 £ 444 589 000,00 £ 417 129 000,00 £ 27 460 000,00

Budgeted revenue = 396 954 464,29 * (1 + 0.12) = £ 444 589 000
- Budgeted expenses = 379 208 181,82 * (1+ 0.1) = £ 417 129 000

b-The likely profit for 2016 = 444 589 000 - 417 129 000 = £ 27 460 000
c-From the data we have, it seems that the law of probability explains that budgeted profit is greater than
income and expenditure. on the other hand, incomes increase and expenses seem to decrease.

Whereas in this case the actual profit is greater than the budgeted profit.

TASK 2

a- the equation to calculate the profit is:

Profit = SP x unit of sold – (VC x unit of sold + TFC)

= 450x – (350x + 800)

Where: x= quantity of units sold

SP= selling price per unit

VC=variable cost per unit

TFC= total fixed cost

b- the formula to calculate the number of units to sell to meet the break-even point:

0 = 450x – (350x + 800)

0= 450x – 350x + 800

0= 100x + 800

100x = 800

x= 800 / 100

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x=8

c- PROFIT = 450x – (350x + 800)

=450*23 – (350*23 + 800)

= 10 350 – (8050 + 800)

= 19 200

PART 2

d- the equation to calculate the profit is:

Profit = SP x – (VC x + TFC)

= 1x – (0,90x + 2000)

e- The number of items Hector needs to sell to break even:

FIXED COST = 2000 = 20 000

SELLING PRICE – PURCHASE PRICE 1 – 0,90

f- Net income = income – expenses

= (15 000*1) – ((15 000*0.90) + 2000)

= 15 000 – 15 500

= - 500

TASK 3

Part 1

a- the equation to calculate the maximum profit is:

P(x) = R(x) – C(x)

P(x) = 15x – (130- x)

Where :

R(x) : Revenue function

P(x): Profit

C(x): Cost function

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b- the equation write in a table the price and profit for price ranging from £15 to £3:

Price Cost Profit

1 £ 3,00 £ 4,50 -£ 1,50
2 £ 4,00 £ 4,50 -£ 0,50
3 £ 5,00 £ 4,50 £ 0,50
4 £ 6,00 £ 4,50 £ 1,50
5 £ 7,00 £ 4,50 £ 2,50
6 £ 8,00 £ 4,50 £ 3,50
7 £ 9,00 £ 4,50 £ 4,50
8 £ 10,00 £ 4,50 £ 5,50
9 £ 11,00 £ 4,50 £ 6,50
10 £ 12,00 £ 4,50 £ 7,50
11 £ 13,00 £ 4,50 £ 8,50
12 £ 14,00 £ 4,50 £ 9,50
13 £ 15,00 £ 4,50 £ 10,50

c- A diagram to represent the profit:

d- The maximum possible profit is £ 4,50 and the selling price is £ 4,50.

PART 2

a- A table show the relationship between price and profit/loss:

Days Price Numbers sold Cost Stall Cost Profit

1 £ 4,00 £ 20,00 £ 0,65 £ 60,00 £ 19,35
2 £ 3,00 £ 60,00 £ 0,65 £ 60,00 £ 119,35
3 £ 2,00 £ 100,00 £ 0,65 £ 60,00 £ 139,35
Other days £ 1,00 £ 140,00 £ 0,65 £ 60,00 £ 79,35

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b- A diagram to represent price and profit/loss:

c- The optimal selling price is £ 2,00.

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