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A company's total costs in 2019 were £9 million - OCR - GCSE Business - Question 7 - 2020 - Paper 1

Question 7

A company's total costs in 2019 were £9 million. The company's labour costs were 40% of the company's total costs. The company's labour costs in 2019 were: A £3.6 ... show full transcript

Worked Solution & Example Answer:A company's total costs in 2019 were £9 million - OCR - GCSE Business - Question 7 - 2020 - Paper 1

Step 1

Calculate the Labour Costs

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Answer

To find the company’s labour costs, we need to calculate 40% of the total costs. The total costs are £9 million.

This can be calculated using the formula:

ext{Labour Costs} = ext{Total Costs} imes rac{40}{100}

Substituting the total costs:

ext{Labour Costs} = 9 ext{ million} imes 0.40 = 3.6 ext{ million}

Step 2

Identify the Correct Option

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Answer

From the calculations above, the company's labour costs in 2019 amounted to £3.6 million. Therefore, the correct answer is:

A £3.6 million

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