Demonstrate the following task:

Task $1$

Prepare to develop a financial plan that addresses the financial requirements of a business or a new business venture.

BENCHMARKS

Identify the costs associated with the production and delivery of the business$$s products or services, eg:

fixed costs

variable costs

mixed costs

Set the business$$s profit targets, eg:

return on investment

sales turnover

gross and net profit

Calculate a charge$-$out rate for labour or unit price for products or services based on costs and profit targets, eg:

process costing

job costing

Identify the legal requirements imposed on the business venture.

Calculate the break$$even sales point to assess the viability of the business venture.

Evaluate and select pricing strategies in relation to market conditions to meet profit targets.

Prepare a projected profit statement to supplement the business plan.