Business Studies – 5.3.2 Statement of profit or loss | e-Consult
5.3.2 Statement of profit or loss (1 questions)
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Calculation of Profit:
- Total Expenses: £500 + £100 + £300 + £200 = £1100
- Total Income: (400 tickets x £10) + £200 = £4000 + £200 = £4200
- Profit: £4200 - £1100 = £3100
Potential Risks and Mitigation Strategies:
- Risk 1: Low Ticket Sales. Mitigation: Offer early bird discounts or promote the event more widely through social media and local advertising.
- Risk 2: Bad Weather. Mitigation: Secure a venue with an indoor option or have a contingency plan for moving the event indoors if necessary. Communicate the contingency plan to ticket holders in advance.
Conclusion: The charity is projected to make a profit of £3100 from the fundraising event. However, it's crucial to identify and mitigate potential risks to ensure the event's financial success.