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Which two of the following are examples of a service? Select two answers - Edexcel - GCSE Business - Question 4 - 2022 - Paper 1
Question 4
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 Which tw... show full transcript
Worked Solution & Example Answer: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?
Answer
To identify examples of a service, we analyze the options provided:
- A. Birthday cake: This is a tangible product, not a service.
- B. Fitness class: A service that provides physical training.
- C. Mobile phone: This is a tangible product.
- D. Newspaper: This is a tangible product, providing information but not a service.
- E. Train journey: A service that involves transportation.
Answer: B (Fitness class) and E (Train journey).
Step 2
Which two of the following are examples of cash inflows?
Answer
To determine examples of cash inflows, we look at the options:
- A. Bank loan: This is a cash inflow as it provides money to the business.
- B. Insurance: Typically an expense, not a cash inflow.
- C. Raw materials: Generally a cost for the business.
- D. Receipts: Represents cash inflow as it indicates money received.
- E. Wages: This is an outflow, representing money paid to employees.
Answer: A (Bank loan) and D (Receipts).
Step 3
Using the information in Table 1, calculate the margin of safety.
Answer
To calculate the margin of safety, we first identify the required figures:
- Break-even sales: 1,500 units
- Actual sales: 2,700 units
The formula for margin of safety is:
Plugging in the values:
The margin of safety is 1,200 units.