Financial Viability Worksheet

Year 11 Business Studies – Financial Viability Analysis

Name:

Date:

Group / Scenario:

Business financial viability illustration

💰 Part 1: Business Scenario Data & Calculations

Use your group's scenario card to answer the questions below. Show all working in the calculation boxes.

📋 Scenario Reference Data (fill in from your scenario card):

Selling price per unit: $________ Variable cost per unit: $________ Units sold per week: ________ Weekly fixed costs: $________

1. Calculate the total variable costs for one week based on your scenario's projected units sold. Show your working.

2. Calculate the total income (revenue) for one week.

3. Calculate the total expenses (variable costs + fixed costs) for one week.

4. Construct a simple Income Statement for your business scenario below. Fill in all figures.

Weekly Income Statement – _______________________________ (Business Name)

Income (Revenue): $___________

Less: Variable Costs $___________

Less: Fixed Costs $___________

Net Profit / Loss: $___________

5. Is your business financially viable based on these figures? Circle your answer and explain why.

Yes – the business is profitable

No – the business is making a loss

Break-even – no profit or loss

📊 Part 2: Pricing Strategy & Critical Thinking

6. If your business increased the selling price by $1.50 per unit, what would the new weekly profit or loss be? Show your working and explain the effect.

7. What would happen to profitability if sales decreased by 10%? Calculate the new profit or loss and comment on the risk this creates.

8. Identify two financial risks that could affect your business scenario. For each risk, suggest one way the business could manage it.

Risk 1: _______________________________________________

Management strategy: _____________________________________________

Risk 2: _______________________________________________

Management strategy: _____________________________________________

9. Which of the following pricing strategies would you recommend for your business? Select all that apply and justify your choice below.

Increase the selling price to improve profit margin

Reduce variable costs by sourcing cheaper ingredients or supplies

Increase units sold through promotions or marketing

Reduce fixed costs (e.g., negotiate lower rent)

10. After hearing the other groups' presentations, which of the three business scenarios (hamburger business, coffee cart, or small retail business) do you think is most financially viable? Use evidence from the income statements to support your answer.