Turnover, costs and profit

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Chapter 5.1

Turnover
Costs

Net profit

Fixed costs

Variable costs

Breakeven sales

Calculating the netprofit

Turnover = 12,000 X € 5	€ 60,000
Purchase value = 12,000 X € 2	€ 24,000 -
Gross profit	€ 36,000
Operating costs	€ 15,000 -
Nett profit	€ 21,000

Turnover = 10,000 X € 5
Gross profit = € 20,000
Calculate the purchase value

1. € 70,000
2. € 40,000
3. € 30,000
4. € 20,000

Answer

Turnover = 10,000 X € 5

Gross profit = € 20,000

Calculate the purchase value

Turnover = 10,000 X € 5 = € 50,000

Purchase value                     .................  --> € 30,000

Gross profit                            € 20,000

Fixed and variable costs

Fixed costs = costs that do not depend on the number of products produced

Variable costs = costs that do depend on the number of products produced

At a volume of 10,000 products, the total costs are € 70,000
At a volume of 15,000 products the total costs are € 95,000
Calculate the variable costs per product

Answer

At a volume of 10,000 products, the total costs are € 70,000

At a volume of 15,000 products the total costs are € 95,000

Calculate the variable costs per product

Increase in costs/ increase in products

€ 25,000/ 5,000 = € 5

At a volume of 10,000 products, the total costs are € 70,000
At a volume of 15,000 products the total costs are € 95,000
Calculate the fixed costs

Answer

At a volume of 10,000 products, the total costs are € 70,000

At a volume of 15,000 products the total costs are € 95,000

Calculate the fixed costs

Variable costs: € 25,000/ 5,000 = € 5 per product

Total costs at 10,000 products                € 70,000

Variable costs 10,000 X € 5                       € 50,000 -

Fixed costs                                                       € 20,000

TC = 40 Q + 12,000
Calculate the total costs at a production volume of 6,000 products

Answer

TC = 40 Q + 12,000

Calculate the total costs at a production volume of 6,000 products

Variable costs 40 X 6,000 =€ 240,000

Fixed costs                                €     12,000 +

Total costs                                 € 252,000

VAT = value added tax

Sales price dinnertable      € 1,000

Purchase value                       €     400 -

Added value (gross profit)€      600 

VAT = 0.21 X € 600  = € 126   to be paid to the tax administration

Or:   € 1,000 X 0.21 = € 210 ---> to be paid

          € 400 X 0.21      €   84 ----> to claim

                                         € 126 to be paid to the tax administration

Consumer price including VAT =
€ 3,630. Calculate the price excluding VAT (21 %)

1. € 2,867,70
2. € 2,800
3. € 4,000
4. € 3,000

Answer

Sales price included VAT        € 3,630   121 %

VAT                                                                         21 %

Sales price excluded VAT       € ............. 100 %

€ 3,630/ 121 X 100 = € 3,000

Or faster: € 3,630/1.21 = € 3,000

Break even sales

Sales price cup of hot chocolate € 2

Variable costs per product € 0.50

Fixed costs € 120

Calculate the number of products you have to sell to break even:

€ 120/ (2 - 0.50) = 80 cups of chocolate