Article Writing Homework Help

I need some assistance with these assignment. budget calculations within a spreadsheet Thank you in advance for the help! The financial problems could either be found in the high cost of operating its business. As of the latest year, the company was almost operating at a breakeven point. From the revenues of £ 693,000, its break-even sales are computed at £ 691,500. This could be attributed to the big fixed of operating its business. Case facts say that fixed costs of £472,000 came from bank charges and interest and rent on the Hemel Hempstead premises while variable costs, amounting to £220,000 came mostly from the labor cost of erecting the marquees. To address the very low profitability of the business with less than a million pounds turnover, that John was “impressed by the idea of going for market share and then pausing at some point to allow expenses to stabilize and then going for some more growth, once there is some cash in the business.” (Case facts)

Between Bruce and John it would appear each has a point. Bruce was conservative type that he felt that there should some way of controlling cost and that growth should not be at the expense of profitability. However the reality in business is that one cannot have profit if there is no revenue and in every revenue, there is use of assets or incurrence of liabilities that would result to expenses. Between Bruce and John there is therefore a choice of just reducing expenses and increasing revenues further but with possibility of increasing expenses. John was realistic in realistic in seeing the solution to the problem by allowing expenses to stabilize and then going for some more growth, once there is some cash in the business. The company needed to have good cash flows in order to be able to supply its working capital requirements. He could be said therefore to be sacrificing&nbsp.growth at the expense of profitability.