Essay on class activity for P9 and M1

Submitted By wana95
Words: 967
Pages: 4

Make an estimate of your sales for year one and two: produce a Sales Forecast (P9)
Use the example given to complete the table for your business
Describe the Item (consumable/ variable assets)
Cost price (£)?
Where can you buy these items (Suppler)?
On what basis?
Quantity and how often
Selling price
(£)
Sales quantity
Sales value for year one (£)
Sales value for year two
(£)
Plants:

Seasonal plants Evergreen plants
All season house plants
Triangle Nursery an online whole seller.
Cash purchase for the first three month, thereafter 30 days credit basis:
(£1.29)
(£1.35)
(£1.05)

Delivery twice a week:

10
100%
profit margin

1.29 x = £2.59 open six days a week/ all year round

18

£2.59 18x 52 weeks = £

£2.59x 21 x 52 weeks=
£
Hand Car Wash
Wheel Treatment
Steps & Doors
Outside Windows
Tyre Shining

Twice a month

£7.00

6

£7.00 6x 52 weeks = £2184

7.00 9x 52 weeks = £3276

Hand Car Wash
Wheel Treatment
Steps & Doors
Outside Windows
Tyre Shining
Internal Vacuum

Twice a month

£13.00

5

£13.00 5x 52 weeks = £3380

£13.00 7x 52 weeks = £4732

Hand Car Wash
Hand Waxed
Wheel Treatment
Steps & Doors
Inside & Outside Windows
Tyre & Bumper Shining
Internal Vacuum

Twice a month

£21.00

5

£21.00 5x 52 weeks = £ 5460

£21.00 7x 52 weeks = £7644

Hand Car Wash
Hand Waxed
Wheel Treatment
Steps & Doors
Inside & Outside Windows
Tyre & Bumper Shining
Internal Vacuum
Rubber Mats Washed
Dash Wiped & Polished
Back to black inside and out

Twice a month

£34.00

5

£34.00 5x 52 weeks = £8840

£34.00 7x 52 weeks = £12376

Prepare a piece of writing incorporating all the following points (M3)
a. What are variable costs for your business?
Variable Assets of my business are my:
A variable cost is a cost that changes in relation to variations in production. Variable costs of my business include: Car Wash Products, Rent, Insurance, Rates and my Employees. .The above are considered variable costs, because they vary directly with the number of units of product produced.

b. Explain why the supply chain of variable assets is very important for the smooth start-up and steady running of your business?
The supply chain of variable assets is important for the smooth start-up and steady running of your business as these are essential. Supply chain is also very important because the flow of goods from one destination to other destination with cost effective and on timely delivery of goods to the business needs and gives the profit to the organisation.
Supply Chain consists of many trading partners, from raw materials to finished products

c. Why is it important to have reliable suppliers?
Finding a reliable supplier is important for the success of my business. Not having good suppliers can be a weakness for my business, and can disrupt the production and the delivery of services. Not having a reliable supplier can be a weakness for my business as should my supplies be delivered late, I may lose a day of work which can cause some figures in my cash flow to be negative example: my sales figures.
d. Explain the choice of your suppliers?
I have chosen Car Care Products as my supplier as they are located in Wimbledon, which is not located far from business. I have also chosen them as my suppliers as they will be delivering my products within 2-3 days of my order. Car Care Products is also my supplier as I looked at the reviews of the business which stated that they were trustworthy and hardworking company.

e. What factors should be considered when deciding on a supplier?
Factors that should be considered when deciding on a supplier are:
Location: This should be considered because if your…