I would just like to say a massive thank you, I really really struggle with condensing my revision notes and your whiteboards are perfect to copy down while I watch your videos. Such a life saver!!!
Thank you so much , i find learning staff very difficult ( thanks for the genes 😖) but you are the first person that made it easy to remember it and understand it . Once again thank you so much
Thank you sir. Your videos are well explained. Anyhow, do you have a video on contribution and its usefulness? In particular I'm referring to A Level Year 2 Edexcel (2018) Business Specification, the Contribution topic.
Total contribution is pretty simple - it is the contribution per unit multiplied by the level of output you are producing. For example, if the contribution per unit is £5 and the business produces 5000 products, then the total contribution is £5 x 5000. As for showing profit through break even diagrams - that's tomorrow's video! Thanks for the question and thanks for watching.
Hi can you help me understand this more regarding how do you know what figures is right to use for the axis? Aswell as figuring out the total cost line in general. Ive tried doing many questions but when it comes to plotting the total fixed line ive eithier got the figures wrong on the axis as its more than i anticipated.
Wages are usually associated directly with the production of the product whereas salaries are commonly for jobs not associated with producing the product, such as marketing employees or accountants
So if the break even is at a lower amount, then that's good right? As you would be producing less units in order to reach your break even. Or is that wrong?
1. Suppose Keynes, Inc is considering buying a machine that will generate revenues of $6 million annually for two years and the $2 million in the third year. After three years the machine is worthless. If Keynes, Inc buys the machine, it must make a deposit of $ 2 million today and pay a further $11 million two years from now. Keynes, Inc has a minimum acceptable rate of return policy on investments set at 5%. a. Using an Excel function, find the breakeven interest rate. Can someone confirm if this answer is 100%?