Photo AI
2 (a) Which two of the following can be interpreted from a break even diagram? Select two answers - Edexcel - GCSE Business - Question 2 - 2021 - Paper 1
Question 2
2 (a) Which two of the following can be interpreted from a break even diagram? Select two answers. A Insolvency B Margin of safety C Market share D Net... show full transcript
Worked Solution & Example Answer:2 (a) Which two of the following can be interpreted from a break even diagram? Select two answers - Edexcel - GCSE Business - Question 2 - 2021 - Paper 1
Step 1
Which two of the following can be interpreted from a break even diagram?
Answer
The correct answers are B (Margin of safety) and E (Profit). The margin of safety indicates how much sales can drop before a business reaches its break-even point, while profit is represented as the area above the break-even point on the diagram.
Step 2
Which two of the following are types of technology that could be used by a business?
Answer
The selected answers are C (Digital communication) and E (Payment systems). Digital communication technologies assist in marketing and communication, while payment systems are essential for financial transactions in modern businesses.
Step 3
Complete the table with the two missing figures.
Answer
For (i) Closing balance in May, it can be calculated as the Opening balance + Net Cash flow:
Closing balance = 600 + 4400 = 5000.
For (ii) Net cash flow for June can be determined by:
Net cash flow = Cash inflows - Cash outflows = 13400 - 9100 = 4300.