AQA A Level Business Studies Unit 1 11th January

No, it said In 2012, expected profit. First year of trading, stop confusing people.

How am I confusing people by quoting someone else's point? I was only acknowledging that I forgot a key point in calculating the profit for 2 years. I was merely expressing my surprise, as I forgot all about the increase of 30% of sales...

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.

CALCULATION FOR 15 MARKER:

The first step, and the crucial one, is to add 30% to the number of products sold, as it was stated in the case study. Therefore, it rises from 9,000 units to 11,700 units a year (in 2013).

You had to use the amended sale figures. I.e. 11,700 units sold @ £9.20 = £107,640

You do the same with costs. FIXED COSTS stay the same (£48,000) where as the Variable costs of t-shirts (£3.29 cost + other variables 50p) also rise by 30%. SO Variable costs will = £3.79 X 11,700 = £44, 343. ADD THE AMENDED COSTS TOGETHER = £92,343.

THEREFORE, in 2013: Revenue = £107,640 - £92,343 = £15, 297.

THIS MEANS PIERRE WOULD MEET HIS AIM OF MAKING £15,000 IN YEAR 2 (2013)

No, just did it for the SECOND YEAR not both together.

I was given the wrong business paper. I got a paper about Max and paintballing! As far as I know I was the only one given this paper. I was quite isolated from the rest of the business people as I also had to sit philosophy. What will happen to me!

I was given the wrong business paper. I got a paper about Max and paintballing! As far as I know I was the only one given this paper. I was quite isolated from the rest of the business people as I also had to sit philosophy. What will happen to me!

I was given the wrong business paper. I got a paper about Max and paintballing! As far as I know I was the only one given this paper. I was quite isolated from the rest of the business people as I also had to sit philosophy. What will happen to me!

CALCULATION FOR 15 MARKER:

The first step, and the crucial one, is to add 30% to the number of products sold, as it was stated in the case study. Therefore, it rises from 9,000 units to 11,700 units a year (in 2013).

You had to use the amended sale figures. I.e. 11,700 units sold @ £9.20 = £107,640

You do the same with costs. FIXED COSTS stay the same (£48,000) where as the Variable costs of t-shirts (£3.29 cost + other variables 50p) also rise by 30%. SO Variable costs will = £3.79 X 11,700 = £44, 343. ADD THE AMENDED COSTS TOGETHER = £92,343.

THEREFORE, in 2013: Revenue = £107,640 - £92,343 = £15, 297.

THIS MEANS PIERRE WOULD MEET HIS AIM OF MAKING £15,000 IN YEAR 2 (2013)

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!

hey do you think For 2b you could say he could have patented or copyrighted ideas so that he could increase price and hence receive greater profit margins????

How can he do that when it's not his invention or not his creative/artistic work

through introducing products which are his own, i dont remember 100% now but didnt it say he was artistic or that something which could have justified that point being made?