6.1 Define the term mark-up - NSC Consumer Studies - Question 6 - 2021 - Paper 1
Question 6
6.1 Define the term mark-up.
6.2 Explain why the hygiene of workers is very important in a work environment.
6.3 Explain how regular/routine maintenance of equipme... show full transcript
Worked Solution & Example Answer:6.1 Define the term mark-up - NSC Consumer Studies - Question 6 - 2021 - Paper 1
Step 1
Define the term mark-up.
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Answer
Mark-up refers to the percentage added to the cost price of goods to cover overhead expenses and still allow for profit. It is crucial for businesses to determine an appropriate mark-up to ensure both sustainability and profitability.
Step 2
Explain why the hygiene of workers is very important in a work environment.
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Answer
Hygiene of workers is vital as it helps prevent the spread of possible diseases, ensuring a healthier workplace. It minimizes absenteeism, leading to continuous productivity. Cleanliness in the workspace reduces contamination risks, maintaining quality and safety in production. Additionally, good hygiene practices safeguard customer health.
Step 3
Explain how regular/routine maintenance of equipment would benefit any business.
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Regular maintenance of equipment prevents unexpected breakdowns during production, ensuring smooth operations. It extends the lifespan of machinery, reduces repair costs, and enhances overall efficiency. By maintaining equipment, businesses can minimize downtime and ensure continuous productivity.
Step 4
Explain the purpose of stock control in a business.
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Stock control ensures that a business does not overstock or understock, preventing cash flow issues due to excess inventory or shortages. It minimizes waste and loss of income by ensuring optimal quantities are maintained. Effective stock control also aids in budgeting and planning for future resource needs.
Step 5
Explain how Khayne's business came into existence.
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Answer
Khayne's business emerged from his admiration for flowers and his desire to create beautiful arrangements. Initial savings allowed him to purchase flowers, and his mother's support provided space for operations. His creativity and marketing via social media attracted customers.
Step 6
Identify his target market.
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Khayne's target market consists of congregants, individuals planning weddings and parties, and gift shops seeking floral arrangements.
Step 7
Discuss the following factors that contributed to the success of Khayne's business:
(a) Financial resources
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Khayne used his savings to start his flower business, which allowed him to buy inventory without incurring debt or rental expenses.
Step 8
(b) Available work space
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Khayne utilized his mother's dining room as a workspace, which provided him with a cost-effective setup for arranging flowers and operating his business.
Step 9
Give the benefits of training the unemployed neighbour.
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Training the unemployed neighbour created employment for him, reduced labor costs for Khayne, and improved the quality and efficiency of flower arrangements, ultimately benefiting the business.
Step 10
Explain why his business is appealing to his customers.
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Khayne's business appeals to customers due to its modern floral arrangements, high-quality products, and the use of attractive, eco-friendly packaging. His personal touch and responsiveness to customer needs further enhance satisfaction.
Step 11
Give reasons for EACH of the following:
(a) Consistent profitability throughout the year.
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Khayne's business enjoys consistent profitability because places of worship purchase flowers regularly, weddings happen year-round, and gift shops maintain steady demand for floral products.
Step 12
(b) Drastic increase in profitability at certain times of the year.
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Profitability spikes during occasions like Mother’s Day and Valentine’s Day when customers buy larger quantities of flowers for gifts and celebrations.
Step 13
Justify the following statement:
Khayne is a responsible consumer.
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Khayne demonstrates responsible consumer behavior by reusing floral leaves as compost, purchasing organic flowers, and supporting local farmers, thereby promoting sustainability and reducing waste.
