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1.3 Putting a business idea into practice

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Question 9

A food stall sells meals for £12 with variable costs of £7 per meal and fixed costs of £10,000. It reduces the price to £11 and expects variable cost per meal to stay unchanged. Which statement is correct?

[1]
A

Contribution rises to £6 and break-even output falls

B

Contribution stays at £5 and break-even output is unchanged

C

Contribution falls to £3 and break-even output rises to 3,334 meals

D

Contribution falls to £4 and break-even output rises to 2,500 meals

Markscheme

1.3 Putting a business idea into practice Questions

  1. GCSE
  2. /Business
  3. /1.3 Putting a business idea into practice

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.

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