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Essay Details:
Essay text:
If the expenditure does not contribute to generate to business profitability it should not be made. Sometime it is not easy to see the connection; how form example buying specific software or equipment can contribute to the profitability factor, so all factors should be addressed before discarding a purchase or change.
Capital Cost Analysis:
Initial investment = ? 250 000
Break down:
Building Cost ((Rent)office operating premises): ? 120 per week excluding bills
? 120 * 52 = ?6240 per year
Bills including (gas, electricity, telephone): ? 2000 per year
Fixtures and fittings (desk tables chairs lights etc): ? 3000
Computer, Hardware and Software inc licences : ? 10000
Advertising (News paper, Web Site, PC Magazines, Flyers) : ? 2000
Wages (9 members of staff): 1 x Database Designer Manager: (? 22,000 pa)
3 x Head database designer: (3x ? 19,000 pa)
4 x Assistant designers: (4x ?16,000 pa)
1 x Receptionist: (?12,000 pa) each
Total Wager per year: ? 155,000
Total operating costs per year ? 178,240
Return on Capital
The fitness club should see substantial gains, in the return on capital of the implemented computer system...
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Common topics in this essay:
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