讲义课件讲稿

UNIVERSITYOFCAMBRIDGEINTERNATIONALEXAMINATIONS

General ofEducation

AdvancedSubsidiaryLevelandAdvancedLevel

BUSINESSSTUDIES 9707/21

Paper2DataResponse October/November2013

1hour30minutes

*1277902079*

AdditionalMaterials: AnswerBooklet/Paper

READTHESEINSTRUCTIONSFIRST

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Writeindarkblueorblackpen.

Youmayuseasoftpencilforanydiagrams,graphsorroughworking.Donotusestaples,paperclips,highlighters,glueorcorrectionfluid.

Answerallquestions.

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At oftheexamination,fastenallyourworksecurelytogether.

Thenumberofmarksisgiveninbrackets[]at ofeachquestionorpartquestion.

This consistsof4printedpages.

DC(NH/SW)66135/2

©UCLES2013 [Turnover

PAGE

2

1 Clare’sClothes(CC)

Clareisasoletraderwhohasbeensellingwomen’sclothinginherlocalareaforthelast10years.Shehasbuiltupareputationforsellingqualityclothesatcompetitiveprices.Hershophasclothesfromwellknownfashiondesigners.Nowhermainbusinessobjectiveistoincreaseprofitoverthenext3years.

ToachievethisobjectiveClareisthinkingofopeningasecondshopinanotherlocation.She 5isconsidering2possiblelocationsforthenewshopandhascollectedthedatashowninTable1.

LocationA

(HighStreetinneighbouringtown)

LocationB

(Retailparkoutsideoftown)

Atownwithlargepopulationoffemalesaged20–45

Rentsarehigh

Twonationalclothingretailersinthesamestreet

Risingunemploymentinthetown

Clarecantravelto/fromthislocationeasily

Anewretailparkwithplentyofcarparkingspaces

Veryhighnumberofpotentialcustomers

Clarecangetadiscountof25%ontherentbutitwillstillbemoreexpensivethanLocationA

Verymodernareasurroundedbyawealthierpopulation

Clarewillhavetotravelfurthertothislocation

Table1:Dataforeachlocation

10

15

20

Clarehasalwayswantedtoownandmanageabusinessbutshewasdisappointedwiththelevelofnetprofitlastyear.Sheknowpansionisanopportunitytomakemoreprofitbutisunsureofwhereshecangetappropriatefinance.HeraccountanthasgivenherthefiguresinTable2. 25

Inventory

$7000

Tradereceivables

$2500

Tradepayables

$6000

Overdraft

$1500

Netprofitmargin

8%

Table2:Keyfinancialdataforyearended2012

30

Clareknowssheneedsatleast$15000tosetupthenewshop.Clarehasmadeanappointmentwithheraccountanttotalkaboutwhethersheshouldtaketheriskandexpandthebusiness.

©UCLES2013 9707/21/O/N/13

Exinthefollowingterms:

businessobjective(line3) [3]

netprofit(line23). [3]

(i) RefertoTable2.Calculatethecurrentratio. [3]

(ii) Usingyouranswerfrom(b)(i),commentontheliquidityofCC. [3]

ysethefactorsthatClarewillneedtoconsiderwhendecidingonasourceoffinancetoraisethe$15000toexpandherbusiness. [8]

UsingTable1andotherappropriateinformation, mendthemostsuitablelocationforCC’snewshop. [10]

©UCLES2013

9707/21/O/N/13

[Turnover

2 FreshlyFrozen(FF)

FFisasmallfamilypartnershipthatmanufacturesarangeofice-creams.FFsellstolocalretailersandalsotowholesalers.FFspecializesinmakingice-creamfrom100%naturalingredientsandthisisFF’suniquesellingpoint.FFisabletocompetewiththelargerice-crenufacturersbecauseofitsreputation.FF’smarketingnsfocusontwo

mainfacts: 5

Allthefruitsusedtomaketheice-creamsare100%fresh(usedwithin2daysofarrivingatthefactory)

Fruitsaresourcedfromlocalfarmers.

FF’stopsellingflavoursarestrawberry,raspberryandorange.Ice-creamsaremadeusingbatchproduction.TheMarketingmanager,Dave,hascomeupwiththeideaoflaunchinga 10

newice-creamcalled‘FruitBurst’.HehasworkedoutthecostsandsellingpriceasshowninTable3.Heipectingtodomarketresearchwithinthenexttwomonths.

Additionalfixedcosts

$25000

Unitvariablecosts

$0.95

Sellingprice

$2.25

Table3:Financialdataon‘FruitBurst’

15

Jenny,theHumanResourcesmanager,hasjusthadameetingwithoneoftheemployees,Arfan.Arfanhassomeconcerns.Arfanhainedthatsomeoftheemployeesarefeelingworried.Theyarepleasedthatthebusinessisngwellbuttheyhaveheardabout‘FruitBurst’.Theyareworriedthattheywillhaveevenmoreworktodoandlongerworking 20

hours.Theyarepaidthesamehourlyratesforallhoursworked.TheyhavehadtocopewithtemporaryworkersjoiningsothatFFcanmeetitsdeliverydatestoitscustomers.Existingemployeesarealsoexpectedtotrainthetemporaryworkerswhichslowsdowntheirownproduction.

Exinthefollowingterms:

partnership(line1) [3]

batchproduction(line10). [3]

(i) RefertoTable3.Calculatethebreak-evenoutputfor‘FruitBurst’. [3]

(ii) ExinoneadvantagetoFFofusingbreak-evenysis. [3]

ysethehumanresourceproblemsforFFifitignoresArfan’sconcerns. [8]

EvaluatethemarketresearethodsthatDavecouldusetohelpdecidewhetherornottolaunchthenew‘FruitBurst’product. [10]

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