Compsoft Limited: Financial Analysis and Break-Even Point

TASK 4- REPORT
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Table of Contents
TASK 4- REPORT.......................................................................................................3
REPORT 1...............................................................................................................3
REPORT 2...............................................................................................................6
REFERENCES............................................................................................................8
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TASK 4- REPORT
REPORT 1
In this report a recently established business Compsoft Limited will be undertaken
that provides computer services and the repair services to the local businesses. The
emphasis will be laid upon the calculations which will help in arriving at different
costs and the money received by the business. Advices will also be rendered on the
utilisation of the surplus money (Salako and Yusuf, 2016). This will be accompanied
with references to the figures of costs and income of this business which are
depicted as under:
Costs £
Spare parts or repairs 25,000
Software and computer supplies bought for resale 72,000
Wages and salaries 42,000
Rent and rates of premises 11,000
Finance costs: Interest paid on bank loan
Leasing of office equipment
3,000
12,000
Income £
Receipts from repairs 100,00
0
Sales of software and computer supplies 108,000
A. In this part, the added value that is achieved by Compsoft Limited will be laid
out. Added value cost will be achieved in this business which is the minority of
the total costs which Compsoft has incurred and has left significant
opportunity to strip out the non-value-added costs and has helped in
increasing the profits (Mathuva, 2015).
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