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Assignment Code: LUBM303

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Table of Contents

Introduction......................................................................................................................................3

Question 1........................................................................................................................................3

a)The mathematical model forDarko farms limited (DF Ltd.)...............................................3

b)Calculation of the profit or loss of Darko farms limited (DF Ltd.)..................................4

c)Five-year projection of Darko farms limited (DF Ltd.)........................................................4

d)Darko farms limited (DF Ltd.) costs and revenues assessment plus commentary...........7

Question 02......................................................................................................................................8

1.Advertisement and revenues correlation analysis evaluation...............................................8

Comments....................................................................................................................................9

2.Advertisement expenditures and revenue income are depicted in a scatterplot...................9

The relationship between different elements is explored for both structures:...........................10

3.Impact spending and sales are the subjects of a deep inspection and suggestions.............10

Marketing expenses’ impact on profitability.............................................................................10

Question 03....................................................................................................................................12

a)Break-Even Point of Mansion Plc......................................................................................12

b)Evaluation discussion of Mansion Plc............................................................................14

c)Factors Mansion PLC’s management should consider before committing the company to

the course of action....................................................................................................................14

d)The study examines the benefits and downsides of employing the break-even concept:

14

Conclusion.....................................................................................................................................15

References......................................................................................................................................16

2

Introduction......................................................................................................................................3

Question 1........................................................................................................................................3

a)The mathematical model forDarko farms limited (DF Ltd.)...............................................3

b)Calculation of the profit or loss of Darko farms limited (DF Ltd.)..................................4

c)Five-year projection of Darko farms limited (DF Ltd.)........................................................4

d)Darko farms limited (DF Ltd.) costs and revenues assessment plus commentary...........7

Question 02......................................................................................................................................8

1.Advertisement and revenues correlation analysis evaluation...............................................8

Comments....................................................................................................................................9

2.Advertisement expenditures and revenue income are depicted in a scatterplot...................9

The relationship between different elements is explored for both structures:...........................10

3.Impact spending and sales are the subjects of a deep inspection and suggestions.............10

Marketing expenses’ impact on profitability.............................................................................10

Question 03....................................................................................................................................12

a)Break-Even Point of Mansion Plc......................................................................................12

b)Evaluation discussion of Mansion Plc............................................................................14

c)Factors Mansion PLC’s management should consider before committing the company to

the course of action....................................................................................................................14

d)The study examines the benefits and downsides of employing the break-even concept:

14

Conclusion.....................................................................................................................................15

References......................................................................................................................................16

2

Introduction

According toMikalef et al., (2020)“Business analytics is a set of disciplines and technologies

for solving business problems using data analysis, statistical models and other quantitative

methods which involves an iterative, methodical exploration of an organization’s data, with an

emphasis on statistical analysis, to drive decision-making.” This report analyzes four different

types of problems using business analysis methods. Four different problems are solved using

mathematical solutions. This report also provides those calculations.

Question 1

a)The mathematical model forDarko farms limited (DF Ltd.)

This arithmetical approach would be a functional interpretation structure that uses empirical

terms to explain overall functioning like any entity (Seddonet al., 2017). Computational

mathematics tools include complex architectures, inferential statistical methods, convergent

formulas, and random metaheuristicalgorithms,among name just a handful. Humanity’s

fundamental simple mathematical estimations are also a more powerful human representation.

Consequently, practically anything within physical and sensory cosmos that can be properly

described via notions underpinning numerical formulae emerges available scientific quantitative

framework examination, whether organic or involving active stake and creation. The following is

just a mathematical formula based upon Darko farms limited’s(DF Ltd.)cost data:

y = mx +b

Darko Farms limited’s (DF Ltd.) overall cost is indicated as TC, a reliant variable, adopting

standard slope-intercept formulation, a linear formula. The algebraic formula is as follows:

TC = VC * Q + FC

Where,

Q = Annual production

TC = Total Price

VC = Cost Variable

3

According toMikalef et al., (2020)“Business analytics is a set of disciplines and technologies

for solving business problems using data analysis, statistical models and other quantitative

methods which involves an iterative, methodical exploration of an organization’s data, with an

emphasis on statistical analysis, to drive decision-making.” This report analyzes four different

types of problems using business analysis methods. Four different problems are solved using

mathematical solutions. This report also provides those calculations.

Question 1

a)The mathematical model forDarko farms limited (DF Ltd.)

This arithmetical approach would be a functional interpretation structure that uses empirical

terms to explain overall functioning like any entity (Seddonet al., 2017). Computational

mathematics tools include complex architectures, inferential statistical methods, convergent

formulas, and random metaheuristicalgorithms,among name just a handful. Humanity’s

fundamental simple mathematical estimations are also a more powerful human representation.

Consequently, practically anything within physical and sensory cosmos that can be properly

described via notions underpinning numerical formulae emerges available scientific quantitative

framework examination, whether organic or involving active stake and creation. The following is

just a mathematical formula based upon Darko farms limited’s(DF Ltd.)cost data:

y = mx +b

Darko Farms limited’s (DF Ltd.) overall cost is indicated as TC, a reliant variable, adopting

standard slope-intercept formulation, a linear formula. The algebraic formula is as follows:

TC = VC * Q + FC

Where,

Q = Annual production

TC = Total Price

VC = Cost Variable

3

Q = The number of properties created

FC = Fixed Price

b)Calculation of the profit or loss of Darko farms limited (DF Ltd.)

When estimating the earnings of Darko farms limited, two specific things must be taken into

account (DF Ltd.). The first represents the one-time fee of £120,000. Another is a variable cost,

which fluctuates according to two factors: the actual number of copies manufactured by the firm

as well as the expense of every entity. The yearly manufacturing is 800,000 units, with a variable

cost of £0.80 per unit. The corporation chose to charge £4.00 for each item.

Total Variable Cost = Variable Cost per unit * Total output

= 0.80 * 800,000

= 640,000

Total cost = Total Variable Cost + Total Fixed Cost

= 640,000+ 120,000

= 760,000

Total Revenue = Total output * Selling price per unit

=800,000 * 4.00

= 3,200,000

Profit = Total Revenue - Total cost

= 3,200,000 – 760,000

= 2,440,000

c)Five-year projection of Darko farms limited (DF Ltd.)

Bytheirsimplestprimitiveaspect,financialforecastingentailsprojectingrevenueand

expenditures over the following seasons. As perRomeroet al., (2018) “In typical cases, one such

prognosis might take into account both institutional and historical data, along with projections

regardingexternaleconomicfactors.”Financialpredictionreferstowhatevermethodof

4

FC = Fixed Price

b)Calculation of the profit or loss of Darko farms limited (DF Ltd.)

When estimating the earnings of Darko farms limited, two specific things must be taken into

account (DF Ltd.). The first represents the one-time fee of £120,000. Another is a variable cost,

which fluctuates according to two factors: the actual number of copies manufactured by the firm

as well as the expense of every entity. The yearly manufacturing is 800,000 units, with a variable

cost of £0.80 per unit. The corporation chose to charge £4.00 for each item.

Total Variable Cost = Variable Cost per unit * Total output

= 0.80 * 800,000

= 640,000

Total cost = Total Variable Cost + Total Fixed Cost

= 640,000+ 120,000

= 760,000

Total Revenue = Total output * Selling price per unit

=800,000 * 4.00

= 3,200,000

Profit = Total Revenue - Total cost

= 3,200,000 – 760,000

= 2,440,000

c)Five-year projection of Darko farms limited (DF Ltd.)

Bytheirsimplestprimitiveaspect,financialforecastingentailsprojectingrevenueand

expenditures over the following seasons. As perRomeroet al., (2018) “In typical cases, one such

prognosis might take into account both institutional and historical data, along with projections

regardingexternaleconomicfactors.”Financialpredictionreferstowhatevermethodof

4

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