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Quantitative Methods for Business based the lecture notes weekly that i will provide in the assignment guideline it tell you steps by steps what to do and even shows how worked it out. you check the assignment sheet doesn't have word count but you have answer the question carefully and clearly and explaining.

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UNIVERSITY OF SOUTH AUSTRALIA
Assignment Cover Sheet – Internal
An Assignment cover sheet needs to be included with each assignment. Please complete all details clearly.
When submitting the assignment online, please ensure this cover sheet is included at the start of your document. (Not as a separate attachment.)
Please check your Course Information Booklet or contact your School Office for assignment submission locations.
Name:
Student ID
Email:
Course code and title: MATH 1053 – Quantitative Methods for Business
School: Info. Tech. & Mathematical Sciences Program Code:
Course Coordinator: Dr Nick Fewster-Young Tutor:
Day, Time, Location of Tutorial:
Assignment number: 1 Due date: by 10 AM, Wednesday 11th September, 2019
Assignment topic as stated in Course Outline: Case Study Report
Further Information: (e.g. state if extension was granted and attach evidence of approval, Revised Submission Date)
I declare that the work contained in this assignment is my own, except where acknowledgement of sources is made.
I authorise the University to test any work submitted by me, using text comparison software, for instances of plagiarism. I understand this will involve the University
or its contractor copying my work and storing it on a database to be used in future to test work submitted by others.
I understand that I can obtain further information on this matter at http://www.unisanet.unisa.edu.au/learningconnection/student/studying/integrity.asp
Note: The attachment of this statement on any electronically submitted assignments will be deemed to have the same authority as a signed statement.
Signed: Date:
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Quantitative Methods for Business- Quber
[Enter the date of submission]
Prepared by
[Enter your name]
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Table of Contents
Introduction......................................................................................................................................1
Financial analysis.............................................................................................................................3
New cut for drivers...........................................................................................................................3
Break even rides...............................................................................................................................3
Conclusions and Recommendation..................................................................................................5
Appendix 1 – profitability analysis..................................................................................................7
Appendix 2 – Calculation of new drivers cut...................................................................................9
Appendix 3 – Breakeven rides.......................................................................................................12
4

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Introduction
Quantitative analysis is performed to analyse the performance of the business and in that there is
the coverage of various aspects. The evaluation will be made with the help of several techniques
which are available. In the given analysis there will be use of the breakeven analysis and
profitability testing. Various other tools will be used by which the proper results will be obtained.
The graphs will also be made so that proper understanding is developed and all of this will be
covered in report below.
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Info graphics
Clustered column chart:
Clustered bar chart
representing cash flows from the
system:
2015 2016 2017 2018
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1200000
1100000
1250000
1356000
950000900000
1000000
1100000
Total revenue and cost
Revenue
cost
1
2
3
4
5
6
7
8
9
10
11
12
13
-1000000 -500000 0 500000
Clustered bar chart
Cash flow
Month
Break even chart of Quber: Profitability of drivers:
0
20000
40000
-100000
-50000
0
50000
100000
150000
200000
Break even chart
Total cost
Total revenue
Total profits
Number of rides
Revenue in dollars
0
100
200
300
400
500
-1000
0
1000
2000
3000
4000
5000
6000
7000
Net profit of drivers
Total profit
Total profit new
Number of rides
Profit in dollar
ii
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Financial analysis
The appendix 1 has provided data in relation to the cost and revenue and in that clustered graph is
presented. In 2018 the cost of $1100000 is incurred with which the revenue of $1356000 is
attained. The highest cost if incurred in 2016 and this is identified with the help of the expense to
revenue ratio.
The rides are changing in all years with maximum in 2017 and minimum in 2016 at 75000 and
55000 respectively. The changes are ascertained with spark lines and profit of $256000 is made
at highest level. The rides reduced in 2016 and so negative spark line is made in that year.
Quber will be able to maintain the profitability in the coming years and with that further
development will be made (Aparicio et al., 2015).
New cut for drivers
Appendix 2 shows that $95133.6 is provided by drivers to the company out of the total earnings
made. There is an increase in the drivers cut to 75.89% from 70% so that the required
profitability is maintained (Harding, Kandlikar and Gulati, 2016).
The company received $95400 at the drivers cut of 70% and with the new cut this amount will be
reduced to $76664.07. Quber is making the revenues of $318000 in each month and for that an
investment of $800000 has been made. The new cut brought the value of the company at
$95133.6.
Break even rides
Out of the total charge of $25, company receives 28% and remaining is provided to drivers. The
profits which are made by them after deducting all the charges include $5.75 for company and
$17 for drivers.
The breakeven in terms of rides is 22 for drivers and 13921 for company. The graph has been
made and it shows that it is the point at which total cost will be equal to the revenues which are
made. The petrol cost of $1 will be met by drivers and with that 316 rides will be undertaken to
earn an amount of $5000.
The petrol cost will be reduced to $0.53 and by that 308 rides will be attaining the target profit of
$5000. The profit will be increased to $16.47 for drivers and with that number of breakeven rides
will be reduced (Oe and Mitsuhashi, 2013). The profitability will be enhanced as the petrol cost
has been declined. The performance will be required to be evaluated to ensure the attainment of
the targets.
Conclusions and Recommendation
iii

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The proper information about Quber is obtained from the report about its performance. There has
been involvement of the profit calculation together with the expense ratio. The new system has
been evaluated in which the driver’s cut for the revenue has been changed to attain the required
results. The breakeven rides have been calculated and by that profitability will be maintained at
required level.
There are various issues which are faced and all have been eliminated with the carried evaluation.
All the aspects by which the growth will be attained are identified and taken into consideration.
(2 marks)
iv
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Reference
Aparicio, J., Borras, F., Pastor, J.T. and Vidal, F., 2015. Measuring and decomposing firm׳ s
revenue and cost efficiency: The Russell measures revisited. International Journal of Production
Economics, 165, pp.19-28.
Harding, S., Kandlikar, M. and Gulati, S., 2016. Taxi apps, regulation, and the market for taxi
journeys. Transportation Research Part A: Policy and Practice, 88, pp.15-25.
Oe, A. and Mitsuhashi, H., 2013. Founders' experiences for startups' fast break-even. Journal of
Business Research, 66(11), pp.2193-2201.
Xu, C. and Yuan, S., 2015. An analogue of break-even concentration in a simple stochastic
chemostat model. Applied Mathematics Letters, 48, pp.62-68.
5
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Appendix 1 – profitability analysis
(a)
Year 2014 2015 2016 2017 2018
Revenue 1200000 1100000 1250000 1356000
cost 950000 900000 1000000 1100000
Ratios 79.17% 81.82% 80.00% 81.12%
Rides 60000 55000 75000 74000
2015 2016 2017 2018
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1200000
1100000
1250000
1356000
950000 900000
1000000
1100000
Total revenue and cost
Revenue
cost
(b)
2014 2015 2016 2017 2018
Net Profit ($ 000’) 208.33 250 200 250 256
Relative Percentage
Change N/A 20.0% -20.0% 25.00% 2.40%
Calculations:
Percentage change in profit = (Profit in current year- last year profit)/Last year profit*100
2016 = (200-250)250*100 = -20%
6

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2017 = (250-200)200*100 = -20%
2018 = (256-250)250*100 = -20%
Calculation of net profit for 2014
Profit = 250/1.2 = 208.33
(c)
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Appendix 2 – Calculation of new drivers cut
(a)
Calculation of present value of $100000
Present value = FV*(1/1+r)n
Present value = 100000 * (1/(1+0.00416)12
Present value = 100000*0.951336
Present value = $95133.6
(b)
Mont
h
Cash
flow
Cost of capital 0.004167
0 -
800000
Drivers percentage
cut
70%
1 95400 Total revenue per
month
318000
2 95400 Quber's percentage
cut
30%
3 95400 Quber's revenue
per month
95400
4 95400
5 95400
6 95400
7 95400
8 95400
9 95400
10 95400
11 95400 NPV $313,084.06
12 95400
(c)
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(d)
9

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1
2
3
4
5
6
7
8
9
10
11
12
13
-1000000 -800000 -600000 -400000 -200000 0 200000
Clustered bar chart
Cash flow
Month
10
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Appendix 3 – Breakeven rides
(a)
i. The break-even number of rides needed by the company per month.
Break even rides = Fixed cost/Revenue per ride-cost per ride
= (50000+200326+600250+80000+30000)/ (25*.28)-1.25
= (960576)/5.75
= 167057 yearly rides
= 13921 rides monthly
ii. The break-even number of rides a driver should complete each month.
Break even rides = Fixed cost/Revenue per ride-cost per ride
Break even rides = (40+40+50+250)/ (25*.72)-1
Break even rides = (380)/17
Break even rides = 22 rides per month
iii. The monthly income made by Quber at break-even.
Monthly income = (13921*5.75) - 80048
= Nil
(b)
Expected rides = Desired profits + Fixed cost/ contribution per ride
= (5000+ 380)/17
= 316.47 or 316 rides
(c)
Desired rides = Desired profits + Fixed cost/(revenue per ride-cost of petrol)
308 = (5000+380)/ (18-x)
308(18-x) = 5380
5544-308x = 5380
x = (5544-5380)/308
x = 0.53
(d)
The reduced petrol cost will lead to increase in the contribution.
Contribution = 18-0.53
= $17.47
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The breakeven will be affected as that will be attained at fewer rides with the contribution
increment. The company will be covering cost in earlier stages only.
(e)
0 5000 10000 15000 20000 25000 30000
-100000
-50000
0
50000
100000
150000
200000
Break even chart
Total cost
Total revenue
Total profits
Number of rides
Revenue in dollars
(f)
0 50 100 150 200 250 300 350 400 450-1000
0
1000
2000
3000
4000
5000
6000
7000
Net profit of drivers
Total profit
Total profit new
Number of rides
Profit in dollar
12
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