You are going to interrogate the impact of variations to key assumptions. Perform this analysis by completing the following P & L Scenarios for your business: Hint: Think about how you would achieve these revised outcomes and complete the outstanding numbers accordingly - there are several ways in each scenario. Do not change numbers in Black 

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Note: Use the financials from your Project Activities Total Revenue (Sales) 1,000,000 Total Direct Costs Gross Profit Using the financials at the end of 4 months, construct the 2 scenarios Net Profit 800,000 % Gross Profit Margin 20% % Net Profit 200,000 Total Fixed Overheads $150,000 $50,000 5% Scenario 1: Increase Gross profit by 10% e.g. from $200k to $220k 220,000 22% $150,000 Scenario 2: Increase Net Profit by 20 % e.g. from $50k to 60k 20% $60,000 Note: Use the financials from your Project Activities Total Revenue (Sales) 1,000,000 Total Direct Costs Gross Profit Using the financials at the end of 4 months, construct the 2 scenarios Net Profit 800,000 % Gross Profit Margin 20% % Net Profit 200,000 Total Fixed Overheads $150,000 $50,000 5% Scenario 1: Increase Gross profit by 10% e.g. from $200k to $220k 220,000 22% $150,000 Scenario 2: Increase Net Profit by 20 % e.g. from $50k to 60k 20% $60,000

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To analyze the impact of variations to key assumptions on your Profit and Loss PL statement we need ... View the full answer