Task Sheet 14a

CALCULATING SALES & PROFIT FOR ISSUE 2

1. Make your decisions for the second issue of your magazine

Fill the appropriate decision in the box

Price of the magazine

Copies produced Your teacher will use this
(maximum 800,000) information to calculate the
number of copies that readers
Type of magazine
wish to buy, or give you a copy
(mainly stories or mainly pictures) of information set 3, which will
Advertising budget allow you to do this for yourself.
(maximum £250,000)
Free gift
(yes or no)
Distribution
(mail order or newsagents)
Sales of the first issue were:

2. Sales Calculation

If the total demand for your

Total Demand for the magazine is: magazine is higher than the
number of copies that you have
Number of copies produced by Pepper is: produced, this is hard luck. You
cannot sell copies that you have
Total sales of issue 2 of the magazine is: not printed. Your sales, in this
case, will be the number of
Number of copies unsold are: copies you produced.

3. Simple Accounts – Issue 2

Total Sales

Price

Sales Revenue (sales x price)

Total Cost of Production

Unsold copies do not incur distribution
costs – multiply the number of unsold
copies (if any) by 10p or 20p and deduct
from total production cost – this gives your
total cost.
Net Profit (Sales Revenue – Total Cost)

Cumulative Profit (from issue 1 + issue 2)

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