Essay About Import Of Coffee Machine And Less Expenses

Molto Delizioso: Pricing and Profit Following Brexit Devaluation
Income Statement                                revenue:                                sales                             200*40000                                                                £8,000,000         less expenses:                                contract labor                 5*40000                                                          £200,000                 import of coffee machine (€90*40000)/1.16                          £3,103,448                 marketing and distribution                                                    £400,000                 other fixed cost                                                                  £500,000                                                        total Expenses                                                                                                    £4,203,448         profit in Pounds                                                                                    £3,796,552         profit in Euros         (£3,796,552*1.16)                                                               € 4,404,000         The price elasticity of 1.1 will result in a change of demand by 19.25%. Therefore the demand for the coffee machines will fall by 7,700 units. The total units sold will be 32,300 units.Income Statement                        revenue:                        sales                             235*32300                                                                           £7,590,500 less expenses:                        contract labor               5*32300                                                               £161,500         import of coffee machines  (€90*32300)/1.16                 £2,506,034         marketing and distribution                                                         £400,000         other fixed cost                                                                       £500,000         total expenses                                                                                                      £3,567,534 profit in pounds                                                                                        £4,022,966 profit in euros         (£4,022,966*1.16)                                                                  € 4,666,640