Completion requirements
You will need to write down your answers in your Mahara e-portfolioFor this activity:
In this theme you have learnt that business costs are divided into different classifications. Cost classification depends upon the actual cost and nature of the business.
Case Study 1
Sparkle Toes
Sparkle Toes is a business that decorates customers’ shoes with individual designs using crystals. A range of designs are offered, and all the crystal decoration is carried out by hand. Sparkle Toes’ prices reflect the complexity of the designs and prices start at £75.00 for a basic design.
1.
The cost of crystals for the design has recently
increased and Sparkle Toes have had to increase their prices to £95.00 per
pair of shoes. As a result, sales have fallen from 200 pairs of shoes to per
month to 175. Calculate Sparkle Toes’ old and new revenue figure per month. Show the formula
in your calculations.
2. In the last financial year Sparkle Toes had a Sales revenue/ turnover of £180,000. Explain the difference between Sales revenue/ turnover and profit.