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This question tests the ability to read and interpret numerical data summarised in a table and make predictions based on algebraic skills.

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The following table shows monthly financial data for a small business.

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
budget forecast (£)actual (£)actual - forecast (£)
Revenue{revenue_forecast}{revenue}$\\simplify{{revenue}-{revenue_forecast}}$
Materials{materials_forecast}{materials}$\\simplify{{materials}-{materials_forecast}}$
Overheads{overheads_forecast}{overheads}$\\simplify{{overheads}-{overheads_forecast}}$
Net profit{net_profit_forecast}?$\\simplify{{net_profit}-{net_profit_forecast}}$
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Click \"Show Steps\" above to see how to answer this question.

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Calculate the actual net profit.

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Answer: £[[0]]

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We can see from the table that the actual net profit subtract the forcast is {{net_profit}-{net_profit_forecast}}.

\n

Therefore \"actual net profit\" - {net_profit_forecast} = {{net_profit}-{net_profit_forecast}}

\n

So the number we want is {{net_profit}-{net_profit_forecast}}+{net_profit_forecast} = {{{net_profit}-{net_profit_forecast}}+{net_profit_forecast}}

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What would the actual material costs need to be so that the actual net profit is the same as the forecast?

\n

Answer: £[[0]]

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From the table, we can see that 

\n\n\n\n\n\n\n
Net profit = Revenue - Materials - Overheads.
\n

Since the overheads are the same for the forecast and in reality, for the the actual net profit to be equal to that of the forecast, we need

\n\n\n\n\n\n\n
Forecast Revenue - Forecast Materials = Actual Revenue - Actual Materials
\n

If the actual materials are considered to be an unknown ($x$), then we can fill in all the other values from the table and rearrange the equation to find $x$. 

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