AHCBUS517 - Monitor and Review Business Performance - Business Management Assignment Help

Assignment Task 

Assessment #1: Evaluate enterprise performance, reviewed operations again performance indicators

The following questions will address the following key criteria of this assessment:
•    Gather and analyse data relating to enterprise production and financial performance to identify historical and current performance
•    Evaluate enterprise strengths and weaknesses against market conditions to determine current and future capacities
•    Monitor impact of natural conditions on enterprise performance
•    Monitored performance against enterprise objectives to identify variations and scope for future development
You must answer all the questions correctly in order to meet assessment requirements for this section.

Question 1:

Using the above on the page before using MS Excel or other software package. You are required to create a line graph, show the Farm Profit and Loss before taxes ($) for each year. You are required to comment to on business with regards to

i)    Profitability and if it was a poor, average or good season for wheat production
ii)    Create a 2nd line graph, comparing year to year, based on 453 Ha being as share farming, which represents, X Ha of the total managed area.
Identify the X (unknown), and what are the changes in profit margin to share farming, would the business remain viable if it were to forego share farming.
iii)    Calculate and comment on the Return on Managed Capital (ROMC)

Question 2:

To demonstrate a partial budget, a ‘what if’ question is asked of the ‘Upndowns Farm’: ‘What would be the effect on farm profitability if the prime lamb enterprise was replaced by an expanded self- replacing merino enterprise.

The results, shown in Table 2.1 below, are based on the following assumptions:
•    Self-replacing merino gross margin is $56/DSE.
•    Prime lamb gross margin is $45/DSE.
•    Total DSE in the current prime lamb flock is 1,720DSE.
•    Asset value of the prime lamb enterprise $168,250 or $98/DSE.
•    Asset value of the self-replacing merino enterprise is $806,250 or $112/DSE.
•    Opportunity cost of capital is 10%.
•    There is no change in the pasture program.

This analysis would indicate that the farm net profit should improve by how much? 

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