AQA Business Studies - BUSS1: May 2017 (Old Spec for Resits)

Ok nice.
Yeah for the last question i got about £11,000 profit if he sold 6000 books.

The question that baffled me was the 6 marker on why he'd need to take out an overdraft if he amends his cash flow forecast. Any ideas?

672, what did u put for the last question? i worked out the profit for both options but I have no idea whether i got the right calculations

Was it not 762????

1,600/2.10 (7-4.90) = 762???

Yes I think based on these figures you are correct.

I wasn't entirely sure of my exact answer but I think this sounds about right. I definitely used the correct formula of Breakeven output = Fixed Costs / Contribution Per Unit and the figures from the first page of the case study.

Anything else you want to discuss?

Ye the fixed costs were £1,600 and the variable costs per unit were £4.90 and a selling price per unit of £7, which would be 762!!!!!

I had a little meltdown after the exam tbh, I was so prepared but didn't have time to finish. Literally put nothing but a definition for the advantage of a business plan question because I had no time :'(

Other than that thought it went well, you?

did u write any definitions for the last question?

No, did you? The question only asked about the option, there didn't seem to be any key terms in the question to define.

no i didn't, i thought it would be ridiculous to try to define self-publication!

Lol! How did you find the exam?

it's hard to say, i was really pushed for time. Can u remember what you put for the question about quantitative and qualitative market research?

Ok nice. I worried that there was other statistical data that I did not see. I think they couldve layed these figures out better haha

Ye the fixed costs were £1,600 and the variable costs per unit were £4.90 and a selling price per unit of £7, which would be 762!!!!!

I had a little meltdown after the exam tbh, I was so prepared but didn't have time to finish. Literally put nothing but a definition for the advantage of a business plan question because I had no time :'(

Other than that thought it went well, you?

Ye I was as well, couldn't check my answers. I defined: market research, qualitative market research and quantitative market research to start with.

For the paragraph for qualitative and agreeing with Alex, I talked about how the opinions showed Alex how to improve his books and what his target market was as the market research showed that Derek the Duck was v popular but other characters were not. The market research also showed that the illustrations were really important for kids aged under 4 but the story was more important for people aged 4+. Alex could use this info to find a target market and adjust the story so the other characters are not mentioned as much so consumer satisfaction based off of the market research is maximised, therefore achieve brand awareness and higher sales etc.

For quantitative - showed the optimum selling price of £7 compared to Alex's expected £8 - without this Alex would not have chosen a price that maximised sales etc. Also showed expected sales for option 1 and 2 - helps Alex choose which option would be more profitable for him

This is long sorry lol. These were a few things I mentioned.

Same here haha, seems like everyone was pushed for time :P

For the 1st 15 marker I defined quantitative market research only.

For quantitative market research argument I said Alex was able to calculate his sales revenue and therefore the profit levels as he got the number of items sold (6000 books and 12,000 books or w/e i was). Then he could use this profit as retained profit, supporting his wife and 2 children etc. He was able to produce a cash flow forecast to work out his inflows because of his quantiative research etc.

For qualitative I put that he was able to have reassurance that his book would generate high sales and that he had a USP in his main character "derek the duck", also he would be able to make a decision and pinpoint on if he wants to focus more on pictures or the actual story itself. Also put that he'd be able to compete effectively in what was described as a "very competitive niche market" by his published.

Ye, that sounds good, similar to what put

great! Are you resitting any other papers to? I'm resitting BUSS3

Yes, BUSS3 and BUSS4.

Ah okay best of luck! I'm hoping to go up one grade to a B as my uni requires.

Thanks, you too! What uni? I need an A :'(

Aston. How about you?