Performance data for Pallin Ltd for the last five years of trading is shown below. | Year | 2017 | 2018 | 2019 | 2020 | 2021 | |-------|---------|------|---------|---------|---------| | Profit| £15000 | £0 | -£90000 | £17000 | -£3000 | Pallin Ltd’s average level of profit over the last five years is: A £4000 per year B £5000 per year C £6400 per year D £8000 per year Your answer:

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Performance data for Pallin Ltd for the last five years of trading is shown below - OCR - GCSE Business - Question 3 - 2022 - Paper 1

Question 3

Performance data for Pallin Ltd for the last five years of trading is shown below. | Year | 2017 | 2018 | 2019 | 2020 | 2021 | |-------|---------|-----... show full transcript

Worked Solution & Example Answer:Performance data for Pallin Ltd for the last five years of trading is shown below - OCR - GCSE Business - Question 3 - 2022 - Paper 1

Step 1

Calculate the Total Profit

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Answer

To determine the average profit, first, we need to calculate the total profit over the five years:

Total Profit = £15000 + £0 - £90000 + £17000 - £3000 Total Profit = £15000 + 0 - 90000 + 17000 - 3000 = -£58000

Step 2

Calculate the Average Profit

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Answer

Next, we calculate the average profit by dividing the total profit by the number of years:

Average Profit = ( \frac{Total\ Profit}{Number\ of\ Years} = \frac{-£58000}{5} = -£11600 ).

Step 3

Choose the Correct Answer

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Answer

Since the average profit is negative (£11600), none of the options A (£4000), B (£5000), C (£6400), or D (£8000) are correct. Therefore, it seems that the given options do not reflect the calculated average profit.

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