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6 (a) State one fixed cost that Sports Tours Ltd will need to pay - Edexcel - GCSE Business - Question 6 - 2021 - Paper 1

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6 (a) State one fixed cost that Sports Tours Ltd will need to pay. (b) Outline one likely impact of changing levels of consumer income on Sports Tours Ltd.

Worked Solution & Example Answer:6 (a) State one fixed cost that Sports Tours Ltd will need to pay - Edexcel - GCSE Business - Question 6 - 2021 - Paper 1

Step 1

State one fixed cost that Sports Tours Ltd will need to pay.

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Answer

One fixed cost that Sports Tours Ltd will need to pay is the salaries of the tour operators. This cost remains constant regardless of the number of tours they operate.

Step 2

Outline one likely impact of changing levels of consumer income on Sports Tours Ltd.

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Answer

If there is an increase in consumer income, it is likely that Sports Tours Ltd will see higher demand for their tours. Consumers with more disposable income may be more willing to spend on travel experiences, potentially leading to an increase in bookings. Conversely, if consumer income decreases, more teams may opt to stay within the UK rather than traveling abroad, which might result in fewer bookings for Sports Tours Ltd.

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