Item A: Second Slice is a community bakery. Its owners want to reduce food waste, pay employees a living wage and remain financially secure.
| Measure | Year 1 actual | Year 2 forecast |
|---|---|---|
| Sales revenue | £160,000 | £190,000 |
| Profit | £9,000 | £4,000 |
| Unsold food donated | 80% | 100% |
| Additional annual cost of living-wage commitment | £0 | £8,000 |
State one social objective of Second Slice.
Calculate the forecast change in Second Slice's profit from Year 1 to Year 2.
Second Slice is considering two approaches:
Option 1: Donate all unsold food and introduce the living-wage commitment in Year 2
Option 2: Continue donating 80% of unsold food and delay the living-wage commitment while profit is increased
Justify which one of these two approaches Second Slice should choose.
38 exam-style questions on Edexcel GCSE Business 1.3 Putting a business idea into practice, covering 1.3.1a Financial aims and objectives, 1.3.1b Non-financial aims and objectives, 1.3.1c Why aims and objectives differ, 1.3.2a Revenue, costs and profit calculations, 1.3.2b Break even and margin of safety, 1.3.2c Interpretation of break even diagrams, 1.3.3a The importance of cash to a business, 1.3.3b The difference between cash and profit, 1.3.3c Cash-flow forecasts: inflows and outflows, 1.3.3d Cash-flow forecasts: net cash flow and balances, 1.3.4a Short-term sources of finance, and 1.3.4b Long-term sources of finance. Each one has a worked solution and a mark scheme showing where the marks go.