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AQA A Level Business Studies Unit 1 11th January

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Reply 220
is this right for the bank overdraft one



A bank overdraft is a facility which is given to current account holders only and allows them withdraw an amount which would be agreed up on

One benefit of Pierre arranging an overdraft is that he was able to receive funding quickly if the overdraft application is approved. This would be vital for Pierre business as this type of business relies mainly purchasing on high levels of stock, and that sales cannot be accurately predicted due to the business being seasonal. As a result I believe that some type of immediate injection of cash should be ready because if the business suddenly has diffulities within cash flow or low levels of profit then it may cause the overall business to stop trading. That is why having this overdraft arranged would be necessary for Pierre.

Secondly another benefit for piere would be that according to the cash flow forecast provided in figure it shows that in year 1 and year 2 there are negative opening balances. I believe that this 20,000 arranged would be essential and need to be invested in the earlier stages of 2012 as the company may suffer from cash flow problems due to lack of funding. This 20,000 pounds would allow the company to at least keep on trading and allow piere to at least to break even let alone to make a profit.

To conclude overdraft would be beneficial to Pierre as from my point of view sales can not be predicted accurately and that anything could happen. It is beneficial for pieere to have some type of funding available and this is why overdraft would be the best solution as less procdures are involved within the process of approvals and that the money is given almost immediately.
Reply 221
Hi guys, thought I would add what I have done.

I have done the same as 'thairshan'.

Question 1d

Total contribution = 9000*8.70= 78,300 units

Question 1d ii

Profit = 82800 52500 = 30,300


I hope I get a few marks for that :/

I also answered a few other ones wrong!

1a: Market segmentation is splitting the market into separate parts for example the overall market of clothing and Pierre being in the segment of the t-shirt market.
I think I may have answered that as a Niche market though :/

I got 1aii for the electronic market.

1b for the personalizing t-shirts by adding value was alright, talked about being a unique design to consumers which would gain Pierre more profit, and some other stuff along those lines.

1c and 1d, i have already talked about and did the final answers wrong.

1e for primary market research was okay, just talked about how it enabled him to find out about how good his website is as he will be selling online and needs an ease of use website, and to focus on quality of the t-shirts regardless of price, but i also added a slight disadvantage as his sample of 15 people was too small to conduct proper primary market research.

2a for the overdraft should have been fine for me as i revised it, but i went completely blank! i gave a definition then i just talked about how he needed the money fast so an overdraft would be the best option, and it can be paid back in an easier time limit than say a bank loan. didn't add a conclusion obviously as it was an analysis question. i wrote hardly anything for this question :/

2b for breakeven, i gave a definition of break even and then used no calculations (didn't ask for them like 2c), but i just mentioned how to lower it, for example cutting off his staff as he is only a start up business and won't need the staff to start and he is paying them more than competitors who have been in the market longer and that will increase his fixed costs. also i mentioned he should forget using a premises and do it all at home, as this saves him £20,000 a year for rent and he could use the money for something else or just his business' savings. i also added how he should not order so much stock (9000 units) and do a lot less and do a test trial for the first month and order like that so he won't spend as much on stock. i also added a couple disadvantages like it all depends how fast his business takes off, and if it does he will need extra staff, premises and more stock so he will be in the same position. then added a conclusion finalizing everything and bringing it all together.

2c for his objectives was just crazy hard. seeing what everyone else has said, it was obviously the strangest question. i only had less than 10 minutes on this question but in terms of what i put:
i defined profit, and then put profit for 2012 (don't even know why, probably to attempt to compare between 2012 and 2013). then i brought in the weird cash flow and added all the negative numbers in 2013 which gave him a crazy negative loss (maybe right or wrong? :/). then i said some stuff about him not meeting his objective but using the cash flow he makes profit in 2014 in april onwards, so this could be due to his competitors getting more business than him, or poor market research and stuff like that. i concluded it quickly, but at least it was an attempt. nothing to brilliant.


Overall, that paper was really hard, I couldn't believe the last question, there has never been a question like that in any past paper. Personally, I feel that this paper was really hard due to the fact the June 2011 paper was a lot easier. Our college did that paper as a mock and I came out with an A with near to no revision.

I guess on the bright-side, AQA will most likely lower the grade boundaries to maybe 34/60 for an A, as the last June 2011 was 39/60 for an A.

Also if anyone needs to retake (which i probably will have to), then at least you can be pretty sure the summer paper will most likely be easier.

Hoping you all do well!
For the 1st 15 mark question, you basically had to discuss how the break even changes along with the other costs. Break even is affect by selling price, variable costs, and fixed costs. First thing to talk about was taking the rent out. Then about decreasing the cost of the shirt to medium quality, and then increasing the price. Of course you have to expand and right about the downsides and advntages of doing the above. Last question was about working the profit out for the 2nd year. i got something around £15,---. I wrote it would meet his targets, but many things can change, i.e- suppliers could increase the cost of the t shirts. You just have to put it loads of calculations to back up your points.. Don't know how i did. fingers crossed. Good luck all for your results.
Original post by thairshan
is this right for calulcations i got


Question 1d

Contribution is the difference between sales revenue and variable costs.

Contribution per unit = selling price variable price

Contribution per unit = 9.20 0.50 = 8.70

Total contribution = 9000*8.70= 78,300 units

Question 1d ii

Profit = sales revenue total costs

Sales revenue = 9.20 *9000 = 82800

Fixed costs = 48,000

Variable costs = 9000*0.50 = 4500

Profit = 82,800- 48,000+4500

Profit = 82800 52500 = 30,300


You did what i did initially, lucky i changed it. You missed the variable cost of the actual tees, which was around £3.29...
Reply 224
For 2b could you say he could have patented or copyrighted ideas so that he could increase price and hence receive greater profit margins????
Reply 225
They wont lower the boundary to 34 come on be realistic.

Im so retaking this exam!@!@!
Reply 226
Original post by franzk
They wont lower the boundary to 34 come on be realistic.


If you look at just this forum, everyone is saying the paper was really hard, so that could count for the most of the overall nation, so surely AQA will lower it. Maybe 34/60 for an A is optimistic, but you never know. I think it will be at least 36/60 for an A, but no one can guess what the actual boundaries will be, so we will just have to wait and see. :/
Reply 227
Na I think 37/60 or 38, not 34.
Original post by franzk
They wont lower the boundary to 34 come on be realistic.

Im so retaking this exam!@!@!


Completely depends on the overall outcome, it could be that low if people really haven't performed well, but yes, I agree it won't be that low, i'd imagine the minimum to be 36.
Reply 229
Original post by charlie9872
completely depends on the overall outcome, it could be that low if people really haven't performed well, but yes, i agree it won't be that low, i'd imagine the minimum to be 36.


this is aqa we are talking about!
Reply 230
Original post by Faisal_R

Original post by Faisal_R
You did what i did initially, lucky i changed it. You missed the variable cost of the actual tees, which was around £3.29...


oh crap its looks like a definite retake for me :frown: why cant i get this right its so annoying urgh just hope i do well in my other business units and excel in them to cover the marks lost
Reply 231
When TSR thinks it is hard then it is hard.
Even though its pretty obvious, the question; 'define Electronic market' - I swear I have never encountered this before, this was a re-take as well and I've never seen this... Nice of AQA to spring surprises on us like that.
Reply 233
Original post by charlie9872
Even though its pretty obvious, the question; 'define Electronic market' - I swear I have never encountered this before, this was a re-take as well and I've never seen this... Nice of AQA to spring surprises on us like that.


I know what you mean it was a retake for me as well, was hoping it would be really easy. Almost everything I revised properly didn't come up...
The electronic market bit is in the spec though under location
Reply 234
Come on guys 34/60 for an A are you joking.

I got 62/80 in this paper last year. I don't think it was any harder/easier. I reckon 40/60 will be needed for an A.

Can someone remind me what the last question was?

EDIT: It was poorly written, but at least it didn't contain mistakes like it did last year!

Got to love all the NEGs. Keep it coming, the boundaries won't be anywhere near 34. Why don't they just make 20% an A and hand it out to everyone....
(edited 12 years ago)
Reply 235
Original post by thairshan
is this right for the bank overdraft one



A bank overdraft is a facility which is given to current account holders only and allows them withdraw an amount which would be agreed up on

One benefit of Pierre arranging an overdraft is that he was able to receive funding quickly if the overdraft application is approved. This would be vital for Pierre business as this type of business relies mainly purchasing on high levels of stock, and that sales cannot be accurately predicted due to the business being seasonal. As a result I believe that some type of immediate injection of cash should be ready because if the business suddenly has diffulities within cash flow or low levels of profit then it may cause the overall business to stop trading. That is why having this overdraft arranged would be necessary for Pierre.

Secondly another benefit for piere would be that according to the cash flow forecast provided in figure it shows that in year 1 and year 2 there are negative opening balances. I believe that this 20,000 arranged would be essential and need to be invested in the earlier stages of 2012 as the company may suffer from cash flow problems due to lack of funding. This 20,000 pounds would allow the company to at least keep on trading and allow piere to at least to break even let alone to make a profit.

To conclude overdraft would be beneficial to Pierre as from my point of view sales can not be predicted accurately and that anything could happen. It is beneficial for pieere to have some type of funding available and this is why overdraft would be the best solution as less procdures are involved within the process of approvals and that the money is given almost immediately.


All your points are valid. Maybe a little brief but then I haven't looked at a AS mark scheme in ages.
Original post by Dan9878
Come on guys 34/60 for an A are you joking.

I got 62/80 in this paper last year. I don't think it was any harder/easier. I reckon 40/60 will be needed for an A.

Can someone remind me what the last question was?

EDIT: It was poorly written, but at least it didn't contain mistakes like it did last year!


The exam out of 80 and the one with the mistake was unit 2. Also, the boundaries for an A last year in unit 1 was 39/60, and this one was far harder, it'll be about 36-39 I think.
Reply 237
Original post by charlie9872
The exam out of 80 and the one with the mistake was unit 2. Also, the boundaries for an A last year in unit 1 was 39/60, and this one was far harder, it'll be about 36-39 I think.


Yes the raw mark is converted to UMS. Paper 1 UMS is 80 and paper 2 is converted to 120.
Original post by Dan9878
Yes the raw mark is converted to UMS. Paper 1 UMS is 80 and paper 2 is converted to 120.


Oh right, my bad.
Reply 239
Any two people put the same answers yet?! lol

Can't remember what I got for total conrtibution, it was in the thousands I think. For proft I got £680 (around that) which seen afew say. For the biggy about reaching his target at first I got £50 thousand and something! Which when I saw his target was £15, 000 thought something must be wrong somewhere. Then I noticed the numbers given were quarterly but the question was asking yearly (something along those lines) so when divided by 4 came out to £13 thousand and something which sounded alot more correct. Anyone get near that?

Was a horrible paper start to end!

Also anyone mention about bulk buying in order to reduce break even output by reducing costs? Not sure if will get marks for that one. As the product is seasonal so large quantitys needed at certain periods.
(edited 12 years ago)

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