If the volume of the sales were to increase by 15 percent, by how much would EPH’s profit increase? Briefly comment. (6 marks) 3) If the revenue figure increases to £600,000, what would be the impact on profit?Briefly comment.

Pricing John Exeter, the owner of Exeter Public House (“EPH”) recently attended a management taster session. John was enlightened by the speaker about the use of financial statements as a management tool. After the event, John has phoned you, who currently prepared EPH’s financial statements, a couple of questions for him to decide the future … Read more