Turnover and Profit :
Turnover and Profit So, if a company sells computers at £800 each and sells 10 in a week their turnover is £8000 for that week.
If he sells 10 computers every week for one year his turnover for the year is £41,600
(£8000 x 52)
Task :
Task Complete section one on your worksheet
Extra Tasks :
Extra Tasks 1: If a clothes shop has a turnover of £15,000 in the first week of January, why will simply multiplying this by 52 not give an accurate figure for the year?
2: If a shop has an annual turnover of £120,000, and they sold 40,000 products all at the same price, how much did each product cost?
Profit :
Profit Total profit is measured by taking away all of a firm’s from its PROFIT = TURNOVER - COSTS costs turnover
Why is Profit Important? :
Why is Profit Important? Profit is often used as a measure of a company’s
Higher profits make it easier for firms to
If the profit falls, the prices of may also fall.
Firms that make a loss will eventually go out of success. expand. shares business.
Task :
Task Complete section Two on your worksheet
Extra Tasks :
Extra Tasks Explain exactly how the following changes would affect profit:
A firm in a highly competitive industry increases its prices by 8%
Demand for a firm’s products fall sharply due to changing fashions.
New production methods increase a firm’s factory reject rate.