Business Analytics: Mathematical Model and Correlation Analysis for Darko Farms Limited and Mansion Plc

Assignment Code: LUBM303
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Table of Contents
Introduction......................................................................................................................................3
Question 1........................................................................................................................................3
a) The mathematical model for Darko 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
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Introduction
According to Mikalef 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 for Darko farms limited (DF Ltd.)
This arithmetical approach would be a functional interpretation structure that uses empirical
terms to explain overall functioning like any entity (Seddon et al., 2017). Computational
mathematics tools include complex architectures, inferential statistical methods, convergent
formulas, and random metaheuristic algorithms, 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
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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.)
By their simplest primitive aspect, financial forecasting entails projecting revenue and
expenditures over the following seasons. As per Romero et al., (2018) “In typical cases, one such
prognosis might take into account both institutional and historical data, along with projections
regarding external economic factors.” Financial prediction refers to whatever method of
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