Business Viability: Costs, Income & Profit

Business Viability: Costs, Income & Profit

Understanding Financial Success in Business Year 11 Business Studies New Zealand Curriculum

What is Financial Viability?

The ability of a business to generate profit consistently over time Covers all expenses and still has money left over Essential for business survival and growth Helps owners make informed decisions

Fixed Costs vs Variable Costs

{"left":"Fixed Costs: Rent, Insurance, Salaries, Equipment","right":"Variable Costs: Raw materials, Ingredients per unit, Packaging, Delivery costs"}

Coffee Cart Challenge

Quick calculation exercise Coffee costs $2 to make, sells for $5 Rent is $200 per week How many coffees needed to break even?

Building an Income Statement

Revenue: Total money from sales Cost of Goods Sold: Variable costs Gross Profit: Revenue minus COGS Operating Expenses: Fixed costs Net Profit: What's left after all expenses

Think About It

A hamburger business sells 100 burgers at $8 each Each burger costs $3 to make Weekly rent and wages total $300 What's the weekly profit or loss?

Group Work: Business Scenarios

Key Takeaway

"Understanding your costs and income isn't just about numbers - it's about making smart decisions that keep your business alive and growing."