Improving Profit

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Mrs Hunter

www.njhunter.co.ukNO IDEAI NEED HELP

NEVER HEARD OF IT

OKI CAN DO THIS WITH SUPPORT

SOME GUIDANCE NEEDEDNEARLY AT MY TARGET

GOT IT!VERY CONFIDENT

WILL HIT MY TARGET GRADE

EXCEED TARGET

Success Criteria< C •Define profit and loss and ways in which we can improve it

C > •Create a working profit and loss account and apply realistic ways in which profits can be improved

B > • Create a working profit and loss account and apply realistic ways in which profits can be improved and analyse the impacts

A > QOWC and SPAG

LEARNING OBJECTIVESInvestigate how we can improve PROFIT

www.njhunter.co.uk questions….

• What is profit?____________________________• How is profit used?____________________________• Why is profit important?_______________________________________

____________________________________

www.njhunter.co.uk Answers...

• What is profit?Sales Revenue – Costs/ expenses• How is profit used?Expansion, investment…• Why is profit important?A main FINANCIAL objective, it measures

success, difference between success and failure

http://www.youtube.com/watch?v=6i49wZWHwOM

CAT

How do we Improve Profitability?

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Improving Profitability • Improving Quality will reduce;

– Returns– Breakdowns– Re-funds / Fines

• Reducing Costs– Economies of scale, bulk buying– Cheaper quality– New suppliers (perhaps from overseas)

• Increase Sales Revenue– Advertising / Marketing– Lowering prices might mean you sell more

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The Profit and loss account• A record of past costs and revenues (often for 1 year)• It can look at total costs over a period• E.g. Spent £500 on shampoo this year• Staff cost £45,000• Made 1 million in sales last year.

Who will be interested in a companies profit and loss account?

Managers- planning purposes, Owners, Potential investors

We looked at this spreadsheet in

year 9

And calculated profits and loss

for ‘Hair by Hunter’

Completed Profit and Loss

What does this show?

www.njhunter.co.uk TASK

• Complete the gaps on your profit and loss account.

• What are the problems here?

• Suggest ways in which we could improve profits.

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www.njhunter.co.uk Answers

www.njhunter.co.uk TYSEXTENSION

Read and Reflect

www.njhunter.co.uk TYS

D

A

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