Aqa business studies a level 2015 official thread

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Variable cost : 115
Jobs done in that month : 40
115 x 40 = 4600
Total cost for that month : 9000
9000 - 4600 = 4400
Fixed cost = 4400 Where did I go wrong if it's 8000 ?!?

(edited 8 years ago)

Reply 21

Student.178

Original post by L-dog

payed per job : 360
VC: 115(Roughly)
Total revenue: 14400
Profit: 1400 (Roughly)

14400/360 = 40 jobs
144000 - 1400 = 12,600
Revenue - profit = total costs
40 x 115 = 4,600 = variable cost
12,600 -4,600 = 8000 = fixed costs
Total revenue - variable costs = fixed costs.

Hopefully this makes sense.

Reply 22

thestudier98

You had to firstly find the total revenue which was 14400 i think
Then times 115 by 40 which got you 4600 which was his TOTAL Variable costs

Minus 4600 from 14400 gets you 9800
That got you the fixed costs+ the profit

To find the fixed costs you had to deduct the profit he made

This would get you with £8000

Thats what i got and how i did it, thoughts?

Reply 23

geeee11

For the calculation I had no idea, I couldn't even guess :frown:

Reply 24

Student.178

Original post by geeee11

For the calculation I had no idea, I couldn't even guess :frown:

You should have just wrote the definition of fixed costs this would have enabled you to get at least one mark. Did you?

Reply 25

geeee11

Original post by JazzyT17

You should have just wrote the definition of fixed costs this would have enabled you to get at least one mark. Did you?

No I didn't think.

I spent half of the writing space trying to do the calculation and then crossing it all out :unimpressed:

I got 8000 pounds

Original post by Johnathan123

Variable cost : 115
Jobs done in that month : 40
115 x 40 = 4600
Total cost for that month : 9000
9000 - 4600 = 4400
Fixed cost = 4400 Where did I go wrong if it's 8000 ?!?

I said they were rough. where is the profit??

Reply 28

L-dog

I just feel like i done terribly bad. But when i added it all up it was right? If that makes sence. I just major ****ed up

Reply 29

SSJ100

At first I was like wtf but make sure you just write whats given and it should start to form in your head... So for example I realised to work out jobs done you divide 14400 (total revenue) by the revenue that year which was 360, this gave 40

Reply 30

L-dog

Original post by SSJ100

that was easy, haha, i just over complicated the entire thing

Reply 31

09wcarterj

Total revenue = selling price x no of sales
14400 = 360 x no of sales
Number of sales = 40.

Variable costs = VC per sale x no of sales
Variable costs = 115 x 40
Variable costs = £4600

Contribution = revenue - variable costs
Contribution = 14400 - 4600
Contribution = £9800

Profit = contribution - fixed costs
1800 = 9800 - fixed costs
Fixed costs = 9800 - 1800
Fixed costs = £8000

Reply 32

Student.178

What about the limited liability question?

Reply 33

Emmaaaaaaa

Original post by JazzyT17

What about the limited liability question?

i said that 'cause ed's uncle was giving him trade credit, if the business ran out of money then his uncle would lose out on profit 'cause ed wouldn't be responsible for the debt

Reply 34

Student.178

Original post by Emmaaaaaaa

i said that 'cause ed's uncle was giving him trade credit, if the business ran out of money then his uncle would lose out on profit 'cause ed wouldn't be responsible for the debt

Yeah same! Also I wrote that Ed may be careless as he knows he has limited liability and buy more supplies then needed as he lacks experience which may eventually lead to debt which would mean Ed's uncle wouldn't get his money whereas Ed would have limited liability.

Reply 35

willgan267

for last question do u do income - expenditure to get profit from figure 1 and 2?

Reply 36

Student.178

Original post by willgan267

for last question do u do income - expenditure to get profit from figure 1 and 2?

I didn't have enough time to calculate it but yeah that's right. How many marks would I loose out of that 15 mark question if I don't have calculations?