Discuss the profit projections you have calculated for the 6-month period.
Explain that you have produced best and worst case profiles of +/- 10% Specify 2 potential risks/opportunities to the business, which would impact volumes sold.
Explain the margin of safety you have calculated and what it tells you about your company’s risk.
Explain how much you need to sell to achieve the target profit of £200,000.
Show how sensitive your company is to changes in key costs/selling prices by doing what-if calculations illustrating the profit impact of changes of 1 key cost and your selling price.
Suggest 1 way the company could reduce its losses / increase its profit. Use what-if analysis to show the impact of this change on the profit and margin of safety for the 6 months at expected sales levels.
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