In this report will analyse budgets and make appropriates decisions and explainn the calculation of unit costs and make pricing decisions using relevant informations. And than this report will assess the viability of a project using investment appraisal techniques and discuss the main financial statements. Compare appropriate formats of financial statements for different types of business. Interpret financial statements using appropriate ratios and comparisons, both internal and external.
3.1 analyse budgets and make appropriates decisions
According to this data, Kaitai HK(GuangZhou) monthly budget increase range so big. Analysis the data, the company not arrange the company situation to set the budget. Analysis the budget, the company not implement budget every month.
Kaitai(Wuhan) monthly actual cumulative not achieve monthly budget.
In this report to analysis the problem, company need to change the budget. Financial department need to analysis the company power, and arrange the company situation to make the company budget. company sales department need to check their past sales patterns, and make a results of market research, and make a market budget. The company economic enviroment influence the company budget, and prodict anticipated advertising during the budget need to consider more factors, and make a particular budget. Humen resource need to consider distribution and quality of sales outlets and personnel. At the samen times, company need to consider the resource budget, reduce the work hours and improve the work effciency, according to this way reduce the resource budget.
3.2 explainn the calculation of unit costs and make pricing decisions using relevant informations
Variable costs=Material costs+ labour costs+ variable overheads=30+90+55=175
Contribution per unit=price -VC=290-175=115
Selling price 290(per unit)
Contribution per unit costs 115
Break-even point= 432000/115=3757