Revenues, costs & profits

Using Extract A and an appropriate calculation, discuss the implications for Tesla of September’s production figures.

Assess whether investment in the labour force is the best way for a firm to increase productivity.

Assess whether a firm should expand during a recession.

Using a suitable diagram, evaluate the importance of supply‑side policies in promoting economic growth.

Explain one method the Competition and Markets Authority (CMA) could use to research the music streaming industry.

Using a supply and demand diagram, illustrate the impact on the market for traditional music formats following the increase in music streaming.

Using the data from Extract B calculate, to two decimal places, the percentage of revenue spent on research and development (R&D) by Spotify in 2021. You are advised to show your working.

Analyse two possible reasons why Spotify might have increased its spending on R&D.

Discuss the benefits for Spotify of using price discrimination.

Using a supply and demand diagram, assess the likely impact on the market for live music if the UK Government reduced VAT on tickets for live music events.

Assess the implications of a fall in unemployment for firms within the music industry.

Assess the benefits for consumers of the music streaming industry being an oligopoly.

Explain one way creative destruction might have affected the clothing market.

Using Extract B, calculate, to 2 decimal places, Boohoo ’s gross profit margin for 2019. You are advised to show your working.

In 2019, Boohoo sold 10,501,813 items. This included low cost clothing and more expensive clothing, coats, shoes and jewellery.

Using Extract B, calculate, to two decimal places, the average revenue per item sold in 2019. You are advised to show your working.

Analyse two advantages of division of labour to manufacturers in the clothing industry.

Using a supply and demand diagram, discuss the likely effect on the UK clothing market of a 1p tax on clothing.

Assess the likely implications of using share capital to fund expansion for a firm such as Boohoo.

Assess the extent to which enterprise is the most important factor of production for the success of Boohoo.

Assess the extent to which there is a trade-off between Corporate Social Responsibility (CSR) and profitability for a firm such as Boohoo.

In July 2008 the jet fuel price per gallon was $3.89. In January 2018 it was $1.95.

Calculate, to two decimal places, the percentage decrease in the price of jet fuel between July 2008 and January 2018. You are advised to show your working.

A company that refits aircraft for airlines was charging a price of £300 000 to refit an aircraft and demand was six refits per year. When the company reduced its price to £298 000 per aircraft the demand increased to seven aircraft per year.

Calculate the marginal revenue gained from the decrease in price for refitting an aircraft.

Using a supply and demand diagram, illustrate the likely impact on BA of further bad publicity for the business.

Analyse two ways secondary market research may be used by airlines, such as BA, to help increase sales.

Discuss the importance to BA of survival as a business objective.

Assess the government’s decision to reduce air passenger duty (APD) as part of its vision for UK aviation.

Assess the possible impact of rising fuel prices on an airline business.

The European Commission has fined BA for its involvement in a cartel.

Assess the extent to which this may negatively impact BA.

In July 2008 the jet fuel price per gallon was $3.89. In January 2018 it was $1.95.

Calculate, to two decimal places, the percentage decrease in the price of jet fuel between July 2008 and January 2018. You are advised to show your working.

A company that refits aircraft for airlines was charging a price of £300 000 to refit an aircraft and demand was six refits per year. When the company reduced its price to £298 000 per aircraft the demand increased to seven aircraft per year.

Calculate the marginal revenue gained from the decrease in price for refitting an aircraft.

Using a supply and demand diagram, illustrate the likely impact on BA of further bad publicity for the business.

Analyse two ways secondary market research may be used by airlines, such as BA, to help increase sales.

Discuss the importance to BA of survival as a business objective.

Assess the government’s decision to reduce air passenger duty (APD) as part of its vision for UK aviation.

Assess the possible impact of rising fuel prices on an airline business.

The European Commission has fined BA for its involvement in a cartel.

Assess the extent to which this may negatively impact BA.

Candy Kittens’ sales revenue in 2016 was £1.5m. Jamie Laing is planning for an increase in sales revenue of 12% by 2019.

Calculate the planned sales revenue for Candy Kittens in 2019. You are advised to show your working.

According to a new report, confectionery sales in the UK are predicted to grow, despite fears about the high levels of sugar in sweets. (Extract A)

Explain one external cost caused by the consumption of sweets.

Using Extract B, explain one supply factor that may have caused fluctuations in the price of sugar.

Research suggests that the biggest growth barrier for UK start-up firms is the UK tax system. (Extract C)

Using a supply and demand diagram, analyse the likely impact on the UK confectionery market of an increase in indirect taxes.

Discuss the benefit that adding value brings to Candy Kittens.

Jamie Laing used loans to start his firm. (Extract A)

Assess the benefits of this source of finance for a new firm such as Candy Kittens.

Assess the extent to which barriers to entry may restrict the growth of Candy Kittens.

Using Extract C, assess the extent to which cash flow forecasting is important to the survival of a new start-up business such as Candy Kittens.

Using Extract A, calculate to 2 decimal places the operating profit margin for Costa for 2014. You are advised to show your working.

Using Extract D, calculate to 2 decimal places the percentage change in the coffee price from October 2014 to September 2015. You are advised to show your working.

Using a supply and demand diagram, illustrate the impact on the coffee shop market of the change in taste and fashion. (Extracts A and C)

Costa Coffee, Starbucks Coffee Company and Caffè Nero are the UK’s leading coffee shop chains. (Extract B)

Analyse one possible impact of the market structure on the pricing strategy of these firms.

Discuss whether market share is the most important business objective to a coffee shop chain, such as Timberyard.

Extract D shows a fall in the wholesale price of coffee during 2015.

Assess the impact this might have on prices charged in coffee shops.

Assess the importance of non-price competition in the UK coffee market.

Assess whether the UK coffee shop market could be considered contestable.