Hairdressing Unit 2- Revision. Please watch this video Write down all the costs you can think of...
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- Slide 1
- Hairdressing Unit 2- Revision
- Slide 2
- Please watch this video Write down all the costs you can think
of when running a barber shop.
http://barberconnect.co.ukhttp://barberconnect.co.uk (video on
homepage)
- Slide 3
- What is a cost? http://www.salonsdirect.com
- Slide 4
- What is a cost?
- Slide 5
- Slide 6
- TASK- Imagine a new Hairdressers is going to open in Wickford
Please list the start-up costs and Running costs this hairdresser
may have. Start-up costsRunning costs Electricity bills Shelving
and shop fittings, Staff wages Cleaning materials, A sign for the
shop Hairdryers Clippers Gel.
- Slide 7
- What is Revenue?
- Slide 8
- Discuss; What ways do Hairdressers earn revenue? What items do
they sell?
- Slide 9
- Which of the below is revenue for a Hairdresser? Staff wages
Advertising Cutting clients hair
- Slide 10
- Task- Are the items fixed or variable costs? Item Fixed Costs
(Does not changed based on how you produce) Variable Costs (Changes
based on how much you produce) Rent Shampoo Barber Chairs Staff
wages Razor Blades Rent Shampoo Staff wages Razor Blades Barber
Chairs Electricity
- Slide 11
- Task 400 clients Variable Costs Fixed Costs Total Costs Super
Cutz various clients hair in their shops. Below are the estimated
monthly costs if they cut 400 clients hair. Total fixed costs =
100,000 Variable costs = 1 per haircut a) Work out the fixed costs,
variable costs and total costs below
- Slide 12
- TASK- Supercutz cut clients hair through a walk in service. The
price of a haircut 12. The business has cut 850 clients hair last
month. Work out the total revenue Supercutz receive from cutting
hair? Show your workings Type in your answer in the box
- Slide 13
- TASK- Give the correct formula for calculating profit. Please
drag and drop the correct items into the formula. Revenue Number of
Sales Inflows Variable Costs Fixed Costs Expenditure Profit
- Slide 14
- Match the keywords to the definitions Total costs = Revenue =
Profit = Gross profit = Net profit = Cash inflows are often called
Cash outflows are often called fixed costs + variable costs number
of sales x price per unit revenue expenditure revenue cost of sales
gross profit expenditure receipts Payments
- Slide 15
- TASK complete the Profit and Loss account below. This is based
on Supercutz in Basildon COSTSREVENUES Income from Sales Cost of
Sales Gross Profit Expenses Salaries Rent Net Profit Revenue is
10,000 per month from cutting hair and selling hair products Cost
of sales (directly linked to cutting hair) is 1000 per month
Salaries are 2,500 per month Rent is 2,400 per month Revenue is
10,000 per month from cutting hair and selling hair products Cost
of sales (directly linked to cutting hair) is 1000 per month
Salaries are 2,500 per month Rent is 2,400 per month
- Slide 16
- What is the difference between Gross Profit and Net
Profit?
- Slide 17
- Identify two ways Hairdresser can improve its Net Profit in
2012? Please type your answers
- Slide 18
- What is breakeven?
- Slide 19
- Add the items onto the graph correctly Label the diagram below.
Drag and drop all items. Please put the on the breakeven point
Profit Total Revenue Margin of safety Loss Fixed Costs Variable
costs
- Slide 20
- Add the items onto the graph correctly Label the diagram below.
Drag and drop all items. Please put the on the breakeven point
Profit Total Revenue Margin of safety Loss Fixed Costs Variable
costs Task- How many units do I need to sell to breakeven?
- Slide 21
- Add the items onto the graph correctly Label the diagram below.
Drag and drop all items. Please put the on the breakeven point
Profit Total Revenue Margin of safety Loss Fixed Costs Variable
costs TASK- What is the total revenue if the business sells 1000
units?
- Slide 22
- Task How many Haircuts would Supercutz need to cut to
breakeven? (cover costs) Selling Price10 Variable cost per Unit50p
Fixed Costs100,000 Type your answer in the box
- Slide 23
- Why is it important for Supercutz to know their Break-even
point? Breakeven is important because
- Slide 24
- Importance of Breakeven analysis to business when planning
success It is needed to identify and track costs (both fixed and
variable costs) It can help businesses identify where they can
change their costs, for example, buying cheaper materials or
finding a cheaper supplier It is needed to highlight the margin of
safety
- Slide 25
- CASHFLOW FORECASTING TASK- Which of the items above are cash
inflows? Please drag and drop them below Share Capital Staff wages
Haircuts Monthly rent Telephone bill L'Oreal shampoo sales Which of
the items above are cash inflows? Please drag and drop them below
Electricity bill
- Slide 26
- Please work complete the cashflow table below 2012. 2013January
()February ()March () Total Receipts120,000125,000115,000 Total
Payments90,000130,00050,000 Net inflow/outfl ow Receipts- payments
30,000 Opening Balance 150,000Closing balance of January 180,000
Closing Balance 180,000Add net cashflow to your closing
balance)
- Slide 27
- BUDGETING Why is it important that a hairdresser budgets?
Considers its .
- Slide 28
- What items could a hairdresser own? (Asset) Own for a short
long amount of time? (Long term liabilities) Own (ASSET) for a
short amount of time? (current asset)
- Slide 29
- Who could a hairdresser owe money to? (Liability) Own for a
short long amount of time? Own for a short amount of time?
- Slide 30
- Balance sheet What items could a Barber own? ASSETS LIABILITIES
- What the business OWNS to others including current liabilities
and long term liabilities -What the business OWES to others
including current liabilities and long term liabilities
- Slide 31
- Balance sheet ADD in TASK