Evaluating Profit Projections and Business Strategy

Provide an analysis of the profit projections for the upcoming 6-month period. Discuss the best and worst-case scenarios, detailing potential +/- 10% variations. Identify two critical risks or opportunities that could affect sales volumes.

Explain the margin of safety calculation and its implications for assessing business risk. Clarify the sales targets necessary to achieve a £200,000 profit.

Demonstrate the company`s sensitivity to changes in key costs and selling prices through what-if analyses, showing the expected profit impact.

Propose a strategic initiative to minimize losses or enhance profits, using what-if analysis to project the impact on profit and margin of safety over the next 6 months at anticipated sales levels.