Starlight Timetable 2013 (2)There are a number of free factsheets and downloads available from BF&C – covering issues like :- optimum pricing techniques, absorption costing techniques and calculating BEP points on new product lines. Please email for further details or visit useful links for more help and tips.
Latest – the download shown below is available now to help you:
a) test your current skills or
b) get a flavour of the type of the outcomes you can receive using our consulting/mentoring services.
Why don’t you take a few moments to have a go at the challenge below?
The Price/Profit Challenge – are you up for it?
download (check the information below before downloading the spreadsheet)
Your task is to examine the current budgeted profit and loss (shown on the statement below). The owner is unhappy with the initial profit forecast of £106,920 at year-end. As a senior manager, your task is to review at the expected sales and cost data and suggest some financial decisions that need to be made, to ensure the profits are significantly improved. Your decisions must be realistic.
This download can be easily adapted for use within your own business for budget/forecasting purposes. A forecast cash flow statement of Grizz Limited is also included.
The initial forecast profit is £106,920 as shown in the table below.
| Budget P/L Account | £ | ||
| Sales | 848,250 | ||
| Operation Cost | 415,530 | ||
| Overheads | 325,800 | ||
| 741,330 | |||
| Budget Profit | 106,920 | ||
As one of the directors, you believe a profit of £150,000 is easily achievable with some realistic adjustments to both selling price and selected cost elements (both fixed and various costs).
Note the price can only be increased by a maximum of £1 due to competitive pressures (for this challenge anyway) but variable and fixed costs can be adjusted by any amount. The 4 variables which you will be able to adjust, either as an increase or decrease, are listed below.
| Change these variables | |||
| £ | |||
| Material Costs | 14.00 | p.u. | |
| Variable Cost | 7.00 | p.u. | |
| Fixed Cost | 17,000.00 | per month | |
| Sell Price | 45.00 | p.u. | |
You will need to download the spreadsheet containing the forecast details of Grizz to do the challenge.
The above table is shown at the top left-hand side of the spreadsheet. Just click on any of the above numbers (i.e. 14 or 17,000 etc.) on the spreadsheet and replace with either a larger or smaller number, then after pressing enter, you can watch the spreadsheet automatically recalculate and display the new profit outcomes. Alter the figures as many times as you like. We hope you enjoy the challenge.
Click on this link to download the file.
Note the information used in order to prepare the forecast results above are included on a worksheet in the file. Some hints are also available – it can be completed in less than 15 transactions!
Are some of the cost elements similar to those found in your operations?
Got it to work?
Do you think the finance decisions that you made were realistic? Send your suggested solution over to me, if you would like it to be reviewed. email
If you need any help with downloading or using the spreadsheet – just give me a call. 07973 330324.
GOOD LUCK!
Don’t forget to look at the Taster Day programme to ‘kick start’ your journey to full financial competence.
