PROFITABILITY AND UNPROFITABILITY BUSINESS VOCABULARY IN USE

 

BUSINESS VOCABULARY IN USE 28. PROFITABILITY AND UNPROFITABILITY

 

A Profitable and unprofitable products A supermarket manager talks about the costs and prices for some of its products. B Budgets and expenditure Like all companies, Nordsee and Vaclav have to budget for, or plan, their costs, and have a budget. Look at the graphs comparing their planned budgets with their actual expenditure (what they actually spent). C Economies of scale and the learning curve Ford is one of the biggest car companies in the world. It benefits from economies of scale. For example, the costs of developing a new car are enormous, but the company can spread them over a large number of cars produced and sold. In dealing with suppliers, it can obtain lower pieces, because it buys in such large quantities. EXERCISES 28.1 Look at this information about Vaclav’s products and answer the questions. 1. Which products make a profit? 2. Which product has the highest level of profitability as a percentage of its selling price? 3. Which loses money? 28.2 Complete the sentences using correct forms of expressions from B opposite. 1. She felt organization was _______ and wasting money on entertainment and luxury travel. 2. UK tobacco companies have an advertising  _______ of £50 million a year. 28.3 Match the sentence beginnings (1-3) with the correct endings (a-c). the sentences all contain expressions from C opposite. 1 There are economies of scale in hospital services; a so cutting unit costs. 2 Some universities put more students into classes, b but we are learning from our mistakes.

ANSWER KEY