Explain how your business is performing showing the expected profit figures you predict, and how these compare to the £150,000 target profit. Explain one kind of risk and one opportunity which could impact your sales projections to give your worst and best case scenarios?
Comment on the margin of safety, and the sensitivity of profit to changes in selling price or costs either variable or fixed. Illustrate this with some sensitivity analysis (=‘What-if’ analysis) on your selling price, and 1 key cost figure.
Suggest 1 way in which the company could reduce its financial risk / increase its profit numbers from where it currently stands. Illustrate the impact of your suggestion with What-if analysis.
