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This is Capstone: Leila's map-shop decisions.

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This walkthrough uses a generic synthetic narrator, not a
recording of Craig Wright.

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Pause whenever you need time to calculate.

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The original lesson, written walkthrough and exercises
accompany this video.

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Leila's map shop: identify the decisions.

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This capstone combines the earlier tools rather than
introducing a slogan about business success.

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A positive cash receipt may use time that has a better
alternative.

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A lower transaction charge may accompany a larger monthly bill.

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A price increase may improve contribution per order while
reducing total orders.

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Treat these as different decisions with different relevant
costs.

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The teaching walkthroughs use other fictional businesses and
different numbers, so you can learn the method

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before independently calculating Leila's case.

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Her exercise responses are submitted for checking; the teaching
slides do not disclose their solutions.

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State Leila's time alternative and past commitments.

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The editing opportunity supplies a specific, feasible
comparison for time spent on maps.

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Do not replace it with an imagined wage from work she cannot
obtain.

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Equally, do not assume time is free because Leila does not pay
herself a wage.

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The earlier design work can be used with either service and
cannot now be recovered.

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The laptop is retained for editing whichever option she
chooses.

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These facts explain why some accounting entries will not change
this decision.

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A different resale opportunity, personal preference or future
benefit would require revisiting the

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assumptions rather than silently inserting it into the
calculation.

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Service A: record the complete operating terms.

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Write the per-order fee as a fixed amount plus a percentage of
that order's price.

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The word fixed here describes the flat part of a transaction
charge; it still varies with the number of

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orders in a month.

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Keep it distinct from the monthly charge, which does not vary
with orders within the stated range.

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A bundle is one payment even though it contains three files, so
its fixed transaction fee, delivery expense

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and service time occur once.

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The monthly charge and maintenance time are avoidable if Leila
does not operate next month.

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Service B: separate recurring and one-off differences.

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Build two columns before comparing services: recurring monthly
consequences and one-off switching

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consequences.

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A lower flat transaction charge is only one term.

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The percentage charge applies to the whole order price, so its
importance depends on product mix and prices.

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The larger monthly fee must also be covered.

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Switching time displaces available editing just as operating
time does, and it uses some of the first

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month's capacity.

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Because reliability and demand are stipulated to be identical,
do not invent a customer benefit for one

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provider.

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Later, question that assumption explicitly as part of
sensitivity analysis.

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Define measures and rounding before calculating.

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Keep intermediate calculations to at least four decimal places,
and follow each exercise's requested final

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precision.

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A weighted average is useful when the product mix is a planning
assumption.

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If actual counts are known, calculate from those counts
instead.

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An expected 75:25 mix need not be realised exactly in a
particular month.

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Do not call the defined cash surplus a complete accounting
profit statement, because the model intentionally

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excludes many real-world items.

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Our purpose is to compare stated alternatives consistently, not
to imply that running an actual business

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requires no tax, legal or operational investigation.

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Worked example: another seller's weighted order.

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First apply the order weights to prices: 2.40 pounds plus 3.60
pounds equals 6 pounds.

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Because the percentage fee is linear and each order has one
flat charge, its weighted average is ten pence

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plus two per cent of six pounds, or twenty-two pence.

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Convert two minutes to hours by dividing by sixty, then
multiply by twenty-four pounds to obtain eighty

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pence.

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Finally subtract the fee, delivery and time cost: six minus
0.22 minus 0.18 minus 0.80 equals 4.80.

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Monthly costs remain separate.

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An unweighted price average would incorrectly assume equal
numbers of the two order types.

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Worked example: reconcile two monthly calculations.

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Check the time calculation carefully.

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Fifty orders at two minutes each require one hundred minutes,
or five-thirds of an hour.

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Add one and a half maintenance hours to obtain nineteen-sixths
of an hour.

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At twenty-four pounds per hour, that is seventy-six pounds.

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Subtracting 76 pounds from the 215 pounds cash surplus gives
139 pounds, matching the contribution method.

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This reconciliation is a powerful error check: the two routes
organise the same consequences differently.

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If they disagree, look for omitted maintenance, inconsistent
time units, an incorrect mix or an opportunity

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cost counted twice.

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Worked example: compare complete time allocations.

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The complete-allocation method includes the earnings actually
received under each plan.

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Noor's remaining work hours earn one hundred and sixty-four
pounds, while the template business produces two

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hundred and fifteen pounds after its stated cash outlays.

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Together they give three hundred and seventy-nine pounds.

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Compare that with two hundred and forty from using all ten
hours for the alternative.

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The difference is one hundred and thirty-nine.

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Do not subtract the seventy-six-pound time opportunity cost
again from this difference: the forgone earnings

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have already been reflected in the reduced hours available for
the alternative.

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Worked example: an additional order has a different threshold.

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Derive the expression instead of memorising a threshold.

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Revenue is p.

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Subtract the two-per-cent fee to retain 0.98p.

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The remaining per-order costs are ten pence of flat fee,
eighteen pence of delivery and eighty pence of

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time, totalling 1.08 pounds.

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At 1.10 pounds, the expression is slightly negative; 1.11
pounds makes it positive.

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This marginal price does not cover the monthly 101 pounds fixed
economic costs if charged across the

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business without enough contribution.

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Accepting one additional order after commitments are
unavoidable and deciding whether to operate for a month

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are different comparisons.

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Worked example: derive a demand boundary.

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Calculate the new contribution by subtracting 0.244 pounds
fees, 0.18 pounds delivery and 0.80 pounds time

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from 7.20 pounds.

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To preserve the old result, new total contribution must still
cover 101 pounds fixed economic costs and

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leave 139 pounds, so it must equal 240 pounds.

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Divide 240 by 5.976 to find the required expected volume.

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Then subtract that volume from fifty and divide by fifty to
measure the allowed proportional decline.

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The result says how much loss of demand the model can tolerate.

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It does not estimate how buyers actually respond to the higher
prices or identify a profit-maximising price.

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Apply the method to Leila's proposed prices.

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Work from weighted contribution rather than assuming that a
ten-per-cent price rise creates a ten-per-cent

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improvement in surplus.

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Percentage fees change with prices, while other per-order costs
remain fixed under the assumptions.

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The fixed monthly economic costs remain the same.

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Compute each scenario separately and compare it with the
starting case.

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Then solve for the exact expected order count needed to match
that starting result.

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Fractional expected counts are allowed for this boundary.

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A recommendation must distinguish this conditional arithmetic
from evidence about which demand scenario is

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likely.

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Worked example: compare recurring service costs.

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First calculate each provider's entire transaction charge at
the same order price.

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For X, thirty pence plus twenty pence gives fifty pence.

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For Y, ten pence plus thirty pence gives forty pence.

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Subtract to obtain ten pence saved per order.

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Multiplying by monthly volume gives total variable savings,
from which the eight-pound extra monthly cost

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must be deducted.

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At eighty orders, those effects exactly offset.

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This recurring comparison deliberately excludes a one-off
switch, which belongs in a separate calculation.

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It also assumes no difference in demand, quality or service
time.

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Worked example: add switching costs and time.

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Value switching time using Rowan's stated alternative: one and
a half hours times twenty pounds is thirty

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pounds.

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Add the twenty-pound payment to get fifty pounds.

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At 180 orders, ten pence per order saves eighteen pounds before
the extra eight-pound monthly charge,

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leaving ten pounds per month.

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Multiply that recurring advantage by the horizon and subtract
the switch once.

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Do not subtract it every month or omit it entirely.

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A longer horizon can make a switch attractive, but only if the
recurring assumptions hold and the transition

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fits available capacity.

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Discounting would be needed if the chosen comparison required
it.

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Evaluate Leila's services over stated horizons.

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Do not mix the higher-price scenario with the service-switching
scenario unless explicitly asked to build a

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new combined case.

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For this comparison, both services use the original prices,
original mix and identical demand.

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The first-month threshold must include the cash and time cost
of switching, while later months should not

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repeat that one-off cost.

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The separate 240-order scenario is a planning assumption, not
evidence that demand has increased.

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Your recommendation should state what must remain true over the
horizon and whether a small conditional

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advantage is robust to plausible changes in workload or sales.

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A threshold must fit the resource budget.

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The capacity method starts by subtracting all relevant fixed
time from available time.

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For Noor, ten minus one and a half leaves eight and a half
hours.

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Multiplying by sixty gives 510 minutes; dividing by two gives
255 orders.

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With the additional setup hour, remaining minutes fall to 450,
giving 225 orders.

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Apply the same method independently to Leila's own figures.

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A profitable-looking algebraic threshold outside capacity is
not an available choice.

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Meeting it would require a new assumption about labour, service
time or available hours, and that change may

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alter the cost comparison.

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Write a conditional, auditable recommendation.

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A strong brief says what should be done under which conditions
and what evidence would change that view.

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Useful tests might measure service minutes by product, track
the realised bundle share or compare customer

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exposure across periods.

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Avoid a vague instruction to collect more data without
specifying the decision it would inform.

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If the editing work disappears, identify the new feasible
alternative rather than mechanically retaining the

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old wage or declaring time worthless.

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Your conclusion should show how assumptions connect to numbers
and numbers connect to a decision, while

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acknowledging questions of rights and wider consequences that
the private-return model does not settle.