2. Which two of the following are examples of a service?
Select two answers - Edexcel - GCSE Business - Question 4 - 2022 - Paper 1
Question 4
2. Which two of the following are examples of a service?
Select two answers.
A. Birthday cake
B. Fitness class
C. Mobile phone
D. Newspaper
E. Train journey
(b) Wh... show full transcript
Worked Solution & Example Answer:2. Which two of the following are examples of a service?
Select two answers - Edexcel - GCSE Business - Question 4 - 2022 - Paper 1
Step 1
Which two of the following are examples of a service?
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Answer
The examples of services from the options provided are:
B. Fitness class
E. Train journey
These options involve providing an experience or service directly to customers.
Step 2
Which two of the following are examples of cash inflows?
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Answer
The examples of cash inflows are:
A. Bank loan
D. Receipts
A bank loan provides immediate cash that can be utilized for various purposes, while receipts indicate money received from sales.
Step 3
Using the information in Table 1, calculate the margin of safety.
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Answer
To calculate the margin of safety, use the formula:
ext{Margin of Safety} = rac{ ext{Actual Sales} - ext{Break Even Sales}}{ ext{Actual Sales}} imes 100 ext{%}
From Table 1, we have:
Actual Sales = 2,700
Break Even Sales = 1,500
Substituting the values, we get:
ext{Margin of Safety} = rac{2700 - 1500}{2700} imes 100 ext{%}
= rac{1200}{2700} imes 100 ext{%}
ext{Margin of Safety} ext{ } ext{is approximately } 44.44 ext{%}
