M21-3-BUSMT-SP2-ENG-TZ0-XX

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Keycap Digit Two

Paper 2

Question 1 - MaximumMarks - 10

Hafs is a new cooperative planning to manufacture wastepaper bins for the household market. The cooperative has forecasted its sales for 2021 to be 25,000 units. The break-even chart for this forecast is shown in Figure 1.

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Question 1 - Image

Question 1 - A

This question asks you to state two features of a cooperative. A cooperative is a type of business organization that is owned and operated by its members for their mutual benefit.

Question 1 - A - Answer

Two features of a cooperative are: 1. Profits are shared amongst members: In a cooperative, any profits made by the business are distributed among the members, usually in proportion to their level of participation or investment in the cooperative. 2. Members share decision making: Decisions in a cooperative are made democratically, with each member typically having one vote, regardless of their level of investment or participation. This ensures that all members have an equal say in the operation of the cooperative.

Question 1 - A - Answer - EC

The candidate has correctly identified two key features of a cooperative. The explanation of profit sharing and democratic decision-making reflects a clear understanding of the cooperative business model. The response is concise and directly addresses the question, which is appropriate for a 2-mark question.

Question 1 - B - i

This question asks you to explain what the y-axis shows in the break-even chart provided in Figure 1.

Question 1 - B - i - Answer

The y-axis in the break-even chart represents both the forecasted cost and revenue figures for Hafs. As the sales or output (shown on the x-axis) increases, Hafs incurs higher total costs and generates higher revenue. The y-axis allows us to determine these values at different levels of output.

Question 1 - B - i - Answer - EC

The candidate has correctly identified that the y-axis represents both costs and revenue. The explanation is clear and demonstrates an understanding of how the y-axis relates to the x-axis in a break-even chart. The response is well-articulated and meets the requirements for full marks.

Question 1 - B - ii

This question asks you to calculate the forecasted profit if sales are 25,000 units in 2021. You need to show all your working.

Question 1 - B - ii - Answer

To calculate the forecasted profit, we need to find the total revenue (TR) and total costs (TC) at 25,000 units of sales. From the break-even chart, we can see that: Total Revenue (TR) at 25,000 units = $250,000 Total Costs (TC) at 25,000 units = $175,000 Therefore, the forecasted profit is: Profit = TR - TC Profit = $250,000 - $175,000 Profit = $75,000 Hence, the forecasted profit if sales are 25,000 units in 2021 is $75,000.

Question 1 - B - ii - Answer - EC

The candidate has correctly calculated the forecasted profit by subtracting the total costs from the total revenue. The working is clearly shown, and the final answer is accurate. This response demonstrates a solid understanding of profit calculation and adheres to the requirements of the question.

Question 1 - B - iii

This question asks you to calculate the total contribution in 2021 if Hafs only sells 20,000 units. You need to show all your working.

Question 1 - B - iii - Answer

Total contribution is the difference between total sales revenue and total variable costs. At an output of 20,000 units: Total Revenue (TR) = $200,000 Total Variable Costs (TVC) = $100,000 (Total Costs (TC) = $150,000; Total Fixed Costs (TFC) = $50,000) To calculate TVC, we take total costs and subtract fixed costs: TVC = TC - TFC TVC = $150,000 - $50,000 TVC = $100,000 Therefore, the total contribution is: Total Contribution = TR - TVC Total Contribution = $200,000 - $100,000 Total Contribution = $100,000 Hence, the total contribution in 2021 if Hafs only sells 20,000 units is $100,000.

Question 1 - B - iii - Answer - EC

The candidate has correctly calculated the total contribution by subtracting the total variable costs from the total revenue. The working is clearly shown, and the final answer is accurate. This response demonstrates a solid understanding of contribution calculation and adheres to the requirements of the question.

Question 1 - C

This question asks you to explain whether an increase in total fixed costs has an impact on unit contribution.

Question 1 - C - Answer

An increase in total fixed costs will have no impact on unit contribution. Unit contribution is the difference between the selling price and the variable cost per unit. Since fixed costs do not affect the variable cost per unit, an increase in fixed costs will not change the unit contribution.

Question 1 - C - Answer - EC

The candidate has correctly stated that an increase in total fixed costs will not impact unit contribution. The explanation is clear and demonstrates an understanding of the relationship between fixed costs, variable costs, and unit contribution. This response is concise and directly addresses the question, which is appropriate for a 2-mark question.

Question 2 - MaximumMarks - null

The Pie Store (TPS) is a business that bakes and sells pies through its three retail stores. The company has incorporated the mathematical symbol pi $(π)$ into its branding. In 2020, each of the three stores made a profit. The financial data for each store, including sales, cost of goods sold, gross profit, expenses, and net profit before interest and tax, is presented in a table. Additionally, TPS's balance sheet for 2020 shows \$200,000 in assets and \$120,000 in liabilities, with \$50,000 of the liabilities being long-term debt.

Question 2 - Table

Question 2 - A

This question asks you to describe one step in the development of a brand.

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Standard Level

Business Management SL

Mathematics AA SL

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Higher Level

Business Management HL

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Core

Theory of Knowledge

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Ab Initio

Spanish Ab Initio

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Biology SL

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Physics HL

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Chemistry HL

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Chemistry SL

Economics HL

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Economics SL

History HL

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History SL

Geography SL

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Geography HL

Mathematics AI HL

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Mathematics AI SL

Biology HL

Psychology SL

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Psychology HL

Design Technology SL

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Design Technology HL

Physics SL

Mathematics AA HL

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Environmental Systems & Societies SL

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Sports, Exercise & Health Science HL

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Sports, Exercise & Health Science SL

English B SL

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English B HL

English A Language & Literature HL

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English Literature SL

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English A Language & Literature SL

English Literature HL

Spanish B SL

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IB Digital Society SL

IB Digital Society HL

IB Visual Arts SL

IB Visual Arts HL

IB Spanish B HL

IB Theatre SL

Computer Science Sl

Serbian A: Literature SL

Serbian A: Literature HL

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Question 3 - MaximumMarks - 10

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Question 4 - MaximumMarks - 10

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Question 5 - MaximumMarks - 10

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IB BUSINESS MANAGEMENT SL, Paper 2, May, 2021, TZ0, Solved Past Paper