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What are costs that do not change when a business' output changes?

A

Total costs

B

Variable costs

C

Fixed costs

D

Revenue

What is an asset that a bank holds as security for the repayment of a loan?

A

Capital

B

Credit

C

Costs

D

Collateral

Zara designs and sells jewellery.

Using the information calculate what her revenue for the month is.

Using the information calculate what her revenue for the month is.

Unit selling price

£68

Total costs

£32

Units sold

275

A

£8,800

B

-£9,900

C

£9,900

D

£18,700

The following month Zara makes £22,100 in revenue.

How many units did she sell?

How many units did she sell?

Unit selling price

£68

Total revenue

£22,100

Units sold

?

A

310

B

280

C

325

D

300

What are the business' profits each month?

Revenue

£28,000 p/m

Fixed costs

£12,000 p/m

Variable costs

£19,000 p/m

A

£3,000

B

-£3,000

C

-£9,000

D

£16,000

Revenue

Break-even point

Fixed costs

Total costs

Mark has a business producing handbags.

Calculate the break-even output using the data.

Calculate the break-even output using the data.

Selling price

£25 per bag

Fixed costs

£7,500 p/a

Variable costs

£10 per bag

A

5,000

B

500

C

300

D

750

Barbera has a hat business.

Calculate the break-even level of output using the figures in the table.

Calculate the break-even level of output using the figures in the table.

Selling price

£50 per hat

Fixed costs

£25,000 p/a

Production costs

£30 per hat

A

833 units

B

8,333 units

C

1,250 units

D

125 units

If total costs are greater than revenue, the business will...

A

make profit.

B

break-even.

C

sell less units.

D

make a loss.

What is the net cash flow if the total inflows are £800 and the total outflows are £3,000?

A

-£2500

B

-£2,200

C

£2,200

D

£3,800

What is the formula for closing balance?

A

Opening balance − Net cash flow

B

Inflow - Outflow

C

Net cash flow + opening balance

D

Opening balance divided by net cash flow

Use the data to find the closing balance for Kimmi's garage.

Total outflow

£4,210

Net outflow

£460

Opening balance

£1,055

A

£595

B

£595

C

£0.43

D

£1,515

What is the formula for calculating the average rate of return (ARR)?

A

Average yearly profit / cost of investment
x 100

B

Cost of investment / Average yearly profit
x 100

C

Cost of investment x Average yearly profit

D

Cost of investment x 100

An entrepreneur is considering a project which will need an investment of £250,000. She wants an average rate of return of 10%.

Calculate the average yearly profit of her investment project.

Calculate the average yearly profit of her investment project.

Average yearly profit

?

Investment required

£250,000

ARR

10%

A

£25,000

B

£0.000004

C

£25m

D

£2,500