The transport costs of Global Logistics United plc (GLU plc) for the last five years are shown below - OCR - GCSE Business - Question 8 - 2019 - Paper 1
Question 8
The transport costs of Global Logistics United plc (GLU plc) for the last five years are shown below.
Mode of transport: By road | By rail | By air
2014: £150,000 ... show full transcript
Worked Solution & Example Answer:The transport costs of Global Logistics United plc (GLU plc) for the last five years are shown below - OCR - GCSE Business - Question 8 - 2019 - Paper 1
Step 1
A the company prefers to transport its goods by air
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Answer
The data does not support this statement as the costs of transport by air are consistently higher than by road and rail. Therefore, it cannot be concluded that the company prefers air transport.
Step 2
B the company's transport costs have fallen year on year
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Answer
The transport costs for the years presented have actually increased for each mode of transport. Hence, this statement is false.
Step 3
C GLU plc spent more than £1.25 million on transport costs in 2018
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Answer
In 2018, the total transport costs can be calculated as follows:
By road: £190,000
By rail: £430,000
By air: £650,000
Total costs = £190,000 + £430,000 + £650,000 = £1,270,000.
This confirms that GLU plc did indeed spend more than £1.25 million on transport costs in 2018.
Step 4
D GLU plc transports more goods by rail than by road
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Answer
From the data, the costs for transport by rail (£430,000 in 2018) are higher than those by road (£190,000 in 2018), indicating that the company does transport more goods by rail than by road.
