Enterprise & Marketing Assignment 3

Complete all sections of this assignment and then click continue to complete the second stage of the assignment.

Click here to download this assignment if you want to complete it on paper before typing up your answers. This is not a coursework task, but will help when you return to school and will develop your understanding of exam topics.

There are 32 marks available for this work and, if completed in detail, this should take about 40 minutes to complete.

Safeguarding & Privacy Notice: Do not include any personal data apart from your first name, the initial of your surname, your school and teacher's name.

1. Explain what revenue is and how businesses calculate their revenue.    [2]

2. Explain what profit is and how businesses calculate profit.    [2]

3. Select whether each cost below is classed as a fixed or variable cost.    [6]

Insurance
Advertising
Stock
Salaries
Utilities
Packaging

A business that manufactures shopping trolleys has provided you with a list of their operating costs:

Insurance payment - £50 per month

Factory rent - £500 per month

Metal (steel) - £10 per trolley 

Trolley parts - £5 per trolley

Electricity - £120 per year

Packaging - £2 per trolley

4. What is the total variable cost of each trolley they manufacture? Show your workings.   [3]

5. What is this factory's TOTAL costs per MONTH when they manufacture 2000 trolleys? Show your workings.    [3]

6. CHALLENGE: What is the total cost PER TROLLEY manufactured within a month when they manufacture 2000? Show your workings.    [3]

© Mean Business 2020