Edexcel A Level Business Unit 2.2 Financial Planning 4 lesson BUNDLE

2.2.1
Sales forecasting
a) Purpose of sales forecasts
b) Factors affecting sales forecasts:
o consumer trends
o economic variables
o actions of competitors
c) Difficulties of sales forecasting
2.2.2
Sales, revenue and
costs
a) Calculation of sales volume and sales revenue
b) Calculation of fixed and variable costs
2.2.3
Break-even
a) Contribution: selling price – variable cost per unit
b) Break-even point:
o total fixed costs + total variable costs = total
revenue
c) Using contribution to calculate the break-even point
d) Margin of safety
e) Interpretation of break-even charts
f) Limitations of break-even analysis
2.2.4
Budgets
a) Purpose of budgets
b) Types of budget:
o historical figures
o zero based
c) Variance analysis
d) Difficulties of budgeting