5.1 herhaling + 5.2

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Welcome back!

The quizzz

Program

1. Recap previous class

2. Check assignments + finish 5.1 

3. Explanation 5.2 + assignments

Lesson goals

You are able to 

- calculate the fixed and variable costs of a company

- calculate the break-even sales

- know what costs of personnel include

- what labour productivity is and how it is calculated

Recap previous class

Explain to each other the following definitions and how these can be calculated

Turnover

Net profit

Operating costs 

VAT

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 -
Net profit (or operating result)	€ 21,000

VAT = value added tax

VAT is a tax that a business has to pay (when buying inventory) or receives when selling products

The VAT needs to be transferred to the Tax Administration

Consumer price is including VAT, it is mostly 21%

Assignments

Discuss 1 t/m 10

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

Proportional variable costs = if the variable costs increase with the production proportionally (by the same amount)

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

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

Break even sales

If turnover is equal to all costs --> break-even turnover

Calculate this by:

1 - Total revenue equals totals costs (TR = TC)

2 - Fixed costs : (sales price - variable costs per product)

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

Assignments

Complete assignments 11 tm 13

5.2 Personnel and production

Read in silence p. 151 and the bottom on p. 152

After that work on assignment 1 tm 7

Lesson goals

You are able to 

- calculate the fixed and variable costs of a company

- calculate the break-even sales

- know what costs of personnel include

- what labour productivity is and how it is calculated