Finance

Which one of these is a source of finance that does not need to be repaid?

Revenue is calculated as:

Which one of these is a variable cost for a pizza shop?

The margin of safety is:

Interest on a loan is a:

Case study (fictional business written for this paper): Greenfold Packaging Ltd makes compostable food boxes in Swindon using batch production. It sells 400,000 boxes a year at 25p each. Variable cost is 15p per box and fixed costs are £30,000 a year. A large fast-food chain wants 600,000 more boxes a year at 20p each. Greenfold's maximum capacity is 900,000 boxes. Calculate Greenfold's annual revenue from its current sales.

Calculate Greenfold's break-even output at its current price.

Calculate the margin of safety at current sales. Explain what it shows.

Room revenue was £640,000 last year, and £720,000 this year. Calculate the percentage increase.

Case study (fictional business written for this paper): Quayside Cycles is a sole trader planning to borrow £12,000 to open a second shop. State two sources of finance, other than a bank loan, Quayside Cycles could use.

The loan of £12,000 is repaid over 3 years with total interest of £1,800. Calculate the total monthly repayment.