Respect to opportunity cost inflation 180000 420000

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respect to opportunity cost, inflation) $180,000 +$420,000+ $600,000 = $1,200,000 Present value of initial investment $861,000 Profitability index 1.39 The expected additional profit for 2014 would be $200,000. This figure should be added to targets. Risks to implementation After consulting with stakeholders at BBQfun, you determine: medium risk of poor online sales high risk of customer service quality problems for online customers leading to a breach of consumer law high risk of staff misunderstanding changes and considering online sales as threat to jobs medium risk of not being able to recruit fully trained online staff low risk of loss of IP relating to confidential information contained within the e-commerce strategy when employees leave the organisation medium risk of loss of IP ownership if a relationship with the website developer contract ceases low level risk of not complying with WHS legislation through lack of risk assessment conducted on potential musculoskeletal disorders 8 resulting from poor customer service workstation design 8 LLOYDS INTERNATIONAL COLLEGE © Innovation and Business Industry Skills Council Ltd. Modified sep 2020 1 st edition version: 3.1 Page 9 of 31
Assessment Task 1 BSBMGT517 Manage operational plan medium risk of wastage due to overstocking product in anticipation of increased online sales. All additional costs associated with contingency planning will be approved in accordance with BBQfun policies and procedures. Musculoskeletal disorders (MSD) are injuries or disorders of the muscles, nerves, tendons, joints, cartilage, and spinal discs LLOYDS INTERNATIONAL COLLEGE © Innovation and Business Industry Skills Council Ltd. Modified sep 2020 1 st edition version: 3.1 Page 10 of 31
Assessment Task 1 BSBMGT517 Manage operational plan Budget summary BBQfun 2013–2014 Approved budget by activities to be undertaken Income: Sales $11,000,000 Barbecues and related equipment. Investment income $1,567,000 Real estate investment income and rental of office space. Cost of goods sold (COGS) ($5,890,000) Cost of provision of goods, purchase of stock, distribution. Gross profit $6,677,000 Gross profit. Expenses: Wages, salaries and on costs $2,567,890 Wages, salaries, superannuation, work cover insurance, payroll tax. Consultancy fees $50,000 Project management: WHS management system; change management. Communication expenses $42,000 Telephone, ISP costs, IT support. Marketing $920,000 Cost of staff travel and associated costs for sales, etc. Premises expenses $1,000,000 Rent, electricity, maintenance, cleaning. Insurance $120,000 Liability insurance Depreciation and amortisation $177,569 Computers and capital equipment that is depreciated. Office supplies $65,068 Printing and stationery, postage, amenities. Training $62,187 Sales training: leadership, WHS, ethical/legal training. Total expenses $5,004,714 Net profit $1,672,286 Net income before tax. LLOYDS INTERNATIONAL COLLEGE © Innovation and Business Industry Skills Council Ltd. Modified sep 2020 1 st edition version: 3.1 Page 11 of 31
Assessment Task 1 BSBMGT517 Manage operational plan Operations General operating hours BBQfun operates Monday to Friday from 9 am to 5 pm. BBQfun will be operational year-round except legislated holidays.

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