Making Financial Decisions (Edexcel GCSE Business)

Read the following extract before answering.

In order to increase its net profit margin Mind Candy is considering two options:

Option 1: developing and selling a range of Petlandia-themed children's toys

Option 2: requiring all staff to work remotely

Justify which one of these two options Mind Candy should choose.

Figure 1 shows the sales revenue of a business over three years.

Figure 1

Using the information in Figure 1, calculate the percentage increase in sales revenue from 2015 to 2016. You are advised to show your workings.

Read the following extract before answering.

Table 2 contains information about Mind Candy’s performance in 2013.

(Source: adapted from https://beta.companieshouse.gov.uk/ company/05119483/filing-history)

Table 2

Using the information in Table 2, calculate, to 2 decimal places, Mind Candy’s gross profit margin. You are advised to show your workings.

In 2018 a business sold three products, X, Y and Z. Figure 1 shows the sales revenue generated for each of these products.

Figure 1

Using the information in Figure 1, calculate, to 2 decimal places, the percentage of total sales revenue made by product X in 2018. You are advised to show your workings.

Read the following extract before answering.

Table 2 contains information about the price of a Tesla Model 3 car between 2017 and 2019.

Table 2

Using the information in Table 2, calculate, the percentage reduction in the price of a Tesla Model 3 car between 2017 and 2019.

Explain one way that a business could use historical sales revenue data.

Discuss the limitations of using financial data to make business decisions.

Read the following extract before answering.

Table 2 contains information about Mind Candy’s performance in 2012.

(Source: adapted from https://beta.companieshouse.gov.uk/ company/05119483/filing-history)

Table 2

Using the information in Table 2, calculate, to 2 decimal places, Mind Candy’s net profit margin. You are advised to show your workings.

Discuss the ways a business could increase its gross profit margin.

Read the following extract before answering.

Analyse the benefit to Mind Candy of calculating the Average Rate of Return (ARR) for the development of the new Petlandia app.

Explain one way a business could improve its net profit margin.

Read the following extract before answering.

Analyse the likely impact on KFC's net profit of the supply issues faced in 2018.