DPP BM Wk 5

Which of the following is not a start up cost?

• Connection and installation of internet and electricity

• Furniture, Fixtures and Fittings

• Initial stock of supplies

• Repairs and maintenance

Charlie's fresh juice pay rent of $2,000 a week, a salary of $2,000 a week to Charlie, buy $6,000 of fresh fruit and use $800 in packaging for the juices. What is the fixed cost?

• $2000

• $4000

• $4800

• $6800

Charlie's fresh juice pay rent of $2,000 a week, a salary of $2,000 a week to Charlie, buy $6,000 of fresh fruit and use $800 in packaging for the juices. What is the variable cost?

• $2000

• $4000

• $4800

• $6800

Charlie's fresh juice have fixed cost of $4000. Every juice he makes has $2.50 of fresh juice and $0.50 for the cup. If Charlie sells the juices for $8.00 each, how many juices does he need to sell to break even?

• 500 juices

• 800 juices

• 1333 juices

• 1334 juices

Charlie's fresh juice have fixed cost of $4000. Every juice he makes has $2.50 of fresh juice and $0.50 for the cup. If Charlie sells the juices for $8.00 each, how many juices does he need to sell to make a profit of $2000 for the week?

• 500 juices

• 667 juices

• 1000 juices

• 1200 juices

Charlie's fresh juice have a rent increase of $700 a week to bring the fixed cost to $4700. Every juice he makes has $2.50 of fresh juice and cups increase to $0.60 each. If Charlie keeps the juice price at $8.00 each, how many juices does he need to sell to make a profit of $2000 for the week?

• 1166 juices

• 1367 juices

• 1368 juices

• 1715 juices

Salary and wages are different. Which statement is not correct

• Salary does not chance based on the hours work, where as wages do.

• Wages are a fixed cost

• Salary and wages both need to be considered when determining break even

• Wages are a variable cost

Revenue is money coming into the business. Expenses is money going out. Which of the following is the most common Revenue Stream

• Advertising

• Interest

• Sales

• Sponsorship

After 1 year of selling juices Charlie has made $104,000 in profit. He decides to invest $50,000 into shares for the business. What revenue stream is he trying to gain?

• Dividends

• Interest Earnings

• Royalties

• Sponsorship

In year 2 of business operations Charlie has a Gross Profit of $40,000 yet his loss for the year is ($15,000). This is because?

• He didn't have a variety of revenue streams.

• The cost of fresh fruit must of gone up.

• Expenses such as wages, rent, electricity must of increased.

• He paid too much in diviends.