BSBFIM601 | Manage Finances - Assignment
Added on 2020-03-07
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FINANCIAL MANAGEMENT
Table of ContentsAssessment 2...................................................................................................................................2Question 1....................................................................................................................................2Question 2....................................................................................................................................3Question 3....................................................................................................................................3Question 4....................................................................................................................................4Question 5....................................................................................................................................4Question 6....................................................................................................................................5References........................................................................................................................................7
ASSESSMENT 2Question 1(a)Projected profit in both the scenario:ParticularIn case profit is invested inredecorating the premisesIn case a new wooden fire oven ispurchased.New Sales$160000 +20%$160000+ ($150*12*15) (note 1)$192000$160000+27000$187000New Increased Profit$20000+32000$20000+$(27000- (150*12*4.5))$52000$38900Note 1No. of pizza that would be sold in whole year = 150*12Increase in sales revenue = 150*12*15Net increase in revenue = (150*12*15) – cost relating to taking away pizza (150*12*4.5) Thus from above analysis, it can be assessed that more profit can be earned in case the profit of$20000 in invested in redecorating the premises. Hence, the same project will be chosen.(b)The management team of the company and the customers will be consulted beforemaking a decision between redecorating and purchasing equipment. As the choice of customerplays a vital role in analyzing the present demand existing in the market. The marketing officerwho is part of the management of team also requires providing his point of view regardinginvestment decision. Thus, after taking a market survey from existing and new customers thatwhether they want pizza service to be provided to them or to enhance the interior of existingpremises; the decision regarding the investment will be taken. It is because; Profit increasing canbe a short term goal but not a long term objective.(c) Records that are required to be maintained are:
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