AQA Business Studies BUSS1 - 14th May 2012!

The target market was parents. The consumer would have been kids in this scenario. Normally, children can't afford to pay entertainers for their parties so parents do that for them; what kind parents they were indeed! :-)

Well the breakeven chart started from £15,000 - the thing that confused me was the units on the y axis were in thousands and here we had a partial cost increase by £20, additionally they never really gave us working out space.

What your friend did was basically find out how much percent it increased and then added that to the actual number, pretty much the same thing I did but the other way around. 50/100*40=£20 which is the increase so it shows that the variable costs increased by 40%. I just increased the total cost line by 40% as well which gave me £21,000 as the new start of the total cost line. Which is the same as your friend doing 1.4 * 15,000.

But I think it's wrong because the variable costs aren't the total costs, they only make up a partial amount of the total costs so if the variable costs increase by 40% the total costs are going to increase by a lesser percentage because total costs are made up of fixed costs as well.

Can anyone explain how it is actually done, I didn't spend too much time on this as I knew I wouldn't get it.

The moment when you look on here and realise what you've missed is never good!

I thought the budgeted profit and loss question was for three months?

Very true! But there was no question specifically asking about a target market, perhaps the one about conducting market research efficiently, but there are like ten possible answers to give as paragraphs (Like on a mark scheme, you can say any number of reasons and be right )

The only ones with a real right or wrong are in the first 20 mark part of the paper

HAHAHAHAH fancy seeing you on here chelsea!!!! I thought the budgeted question was for 3 months aswell!

hey mate hows revision for unit 4 going what kind of things have you looked at?

basically the costs at the start of the graph were the fixed costs, which if i remember rightly were 15000. and the variable costs are the costs that change directly with output, so for example piece rate labour... zoe's v/c's were £50 but they were changed to £70. Zoe predicted to sell 225 units. (output) and so you had to times 70 by 225 which is 15750. so you the new variable costs to the original fixed costs and get 30750 and draw that from 15000 to 30750, thus giving you a new break even point which you had to draw A on and a new profit line. hope that helps

Originally Posted by tomp123
basically the costs at the start of the graph were the fixed costs, which if i remember rightly were 15000. and the variable costs are the costs that change directly with output, so for example piece rate labour... zoe's v/c's were £50 but they were changed to £70. Zoe predicted to sell 225 units. (output) and so you had to times 70 by 225 which is 15750. so you the new variable costs to the original fixed costs and get 30750 and draw that from 15000 to 30750, thus giving you a new break even point which you had to draw A on and a new profit line. hope that helps

Aw shet, any idea's of what the 3 marks for that line were?

Correct start point, correct end point anddd?

I did it differently? I think the total costs line went from 15,000 to 26,000. Only the variable costs increased which means to start with the line began at 15,000 aswel, like you say, because at 0 output its only the fixed costs, which didnt change. Next, there was an increase in variable costs by £20, so i did 225 units X £20 to give an extra £4,500 costs. Then added this to the 26,000 to get a line going from 15,000 to 30,500. ?

EDIT: scrub that your right, as £50 X 225 units + fixed costs = £26,250

oh well, hopefully the difference in the line will be so small (£250 ish) that it will be impossible to tell?

Attached are my exact answers from exam, please give me your feedback on them especially the expenditure budget question and the last 15 marker cos I'm worried I didn't argue both sides of argument. Please comment back with your thoughts and predicted grades.

Can anyonr guess the grade boundaries? hope they are low... think i messed up on the expenditure budget qu and lost marks on not completing any of the break even questions and just overall rushing especially on the last question. stupid paper. Not much to talk about. very disappointed as i thought this exam was going to be a gift

I doubt the grade boundaries will be very low cos to be fair it was an easier exam then it was in jan

What were the boundaries in Jan?

Well for an A it was only 38/60 which is very low i would love it to be that for this exam but highly doubt it