Produce a business report to Sarah Scott, in good style, that reports on the following issues:
a) Calculations on the expected level of sales that you believe need to be made to break even. Back this up with further calculations such as margin of safety.
Ensure that you justify any calculation assumptions that you make. Comment on the results obtained. (Note, that there are several ways that you can calculate break even and you can do several calculations as long as you provide a clear conclusion.)
(20 marks)
b) Provide recommendations as to the adequacy of the current prices that the company adopts in relation to the prices charged by its competitors. Suggest any adjustments that you would make to current prices in the light of current market conditions.
(20 marks)
c) Discuss the potential benefits of implementing a budgeting system in a business such as Greengrass.
(40 marks)
d) The business is considering moving its operations to a country in eastern Europe as a means to cutting costs. Without undertaking any calculations discuss the factors which should be taken into account before such a decision is made.
(20 marks)
