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Managing Financial Resources - Assessment 2

   

Added on  2023-06-10

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Managing Financial
Resources
Assessment 2
Managing Financial Resources - Assessment 2_1

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Question 1....................................................................................................................................3
Question 2....................................................................................................................................4
Question 3....................................................................................................................................5
Current Ratio :..................................................................................................................................5
REFERENCES................................................................................................................................8
Managing Financial Resources - Assessment 2_2

INTRODUCTION
Management of the financial resources is important as it helps the organization to obtain
funds and also make investments when it sis important for the current activities. In this project
the financial performance of Fortune trading company will be analysed. This project will be the
demonstration of the understanding of the use of cost information for the business performance.
This project will also be able to analyse the organizations budget through the use of variance
analysis.
MAIN BODY
Question 1
The price and unit distribution from the given study helps in the calculation of the units
which will be sold at different price levels.
£ Units
Price P1 100 100
Price P2 95 110
Price P3 90 120
The given costs are as follows,
Fixed cost is the cost which is fixed and will not change for an organization with any
increase or decrease of production.
Variable cost is given to change per unit of sale as changes as per the cost of production.
Fixed cost 2500
Variable cost @ per unit 20
From the above case study the following different scenarios that can be created that will
help the organization in the generation of profit.
Sales 1 P1*100 10000
Fixed cost 2500
Variable cost @ per unit 20 2000
Managing Financial Resources - Assessment 2_3

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