Name: _______________________________________________

Calculation Revision

Mr. McLoughney and Mr. Corcoran

Questions
Q1.

Apple is a US technology company specialising in branded devices such as iPods,

iPads and iPhones. These brands are well known around the world. In 2015,
Apple was recognised as the most valuable global brand by Interbrand (a market
research group).

In 2016, revenue from Apple products fell for the first time in over ten years.
To improve profitability, Apple now intends to focus on its new products, such as the
Apple watch. Following the collection of primary market research, Apple have also
improved their social media presence and now provide advice and customer support
using Twitter.

An extract from Apple's 2014 statement of financial position is shown in Figure 2 below.

Calculate Apple's current ratio for 2014.

You are advised to show your working.
(2)
.............................................................................................................................................

.............................................................................................................................................

.............................................................................................................................................

.............................................................................................................................................

(Total for question = 2 marks)

Q2.

Yellow, a clothing retailer, is part of BEXIMCO Textiles Limited. Yellow opened in 2004 and now has 15
stores across Bangladesh and Pakistan, with new stores opening in Dubai and Toronto. Yellow clothes
are mainly manufactured in Bangladesh. Some are bought from manufacturers in other countries. Yellow
expects its suppliers and manufacturers to provide fair wages and safe working conditions. It requires
every manufacturer to commit to meeting recognised health and safety standards, be ethical and
environmentally sustainable. It encourages all of its manufacturers to use Kaizen.

A Yellow T-shirt costs 11.05 Bangladeshi Taka (BDT) to manufacture. Yellow then sells them for 13.75
BDT.

Calculate the gross profit for Yellow if it sold 14,000 T-shirts. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q3.

Haji Biriyani is a restaurant group located in Dhaka, Bangladesh. The business was started in 1939 by
Haji Mohammed Hossain. The restaurant group now has three restaurants in Dhaka. It is famous for
selling Biriyani, a mixed rice dish containing mutton and spices such as black peppercorns and cinnamon.

Figure 1 shows selected information from Haji Biriyani's statement of comprehensive income in 2015.

Calculate Haji Biriyani's operating profit margin in 2015. You are advised to show your working.
(2)
.............................................................................................................................................

.............................................................................................................................................

.............................................................................................................................................
.............................................................................................................................................

(Total for question = 2 marks)

Q4.

Hans Raj Mahajan Worldwide (HRMW) is an established manufacturer of sports equipment and
sportswear in India. It is a family-run business, which started trading in 1925 and since then has grown to
become an established business. Its products are exported across the world. These include footballs,
boxing gloves, hockey sticks and sports clothing.

The Indian Government has said that HRMW is one of the top 10 businesses in India. HRMW has been
given more than 50 awards for its performance in exporting and for the quality of its products.

Figure 3 shows HRMW's possible financial situation.

Calculate, to two decimal places, the acid test ratio for HRMW.

You are advised to show your workings.

(2)

(Total for question = 2 marks)

Q5.

Huawei is a leading global provider of information and communications technology, infrastructure and
smart devices. In March 2011, over one million of its C8500 smartphones were sold in China following its
launch.

It now manufactures a wide variety of different products including Huawei smartphones, watches and
tablets. In recent years Huawei has won many awards. In 2018 it was named the 68th most valuable
brand by Best Global Brands. In 2019 it introduced a smartphone which had new photographic
technology.

Huawei constantly has to introduce new products to the market to keep up to date with its competitors. If it
does not do this then there is the possibility that other businesses will succeed where Huawei will not.

Huawei has to maintain the quality of its products to be able to compete with other businesses, as well as
generating profit. It must also ensure that the products it produces meet the needs of its customers as
well as introducing new and different forms of technology. On its website it states 'Huawei are committed
to bringing digital to every person, home and organisation for a fully connected, intelligent world'.

In January 2019 Huawei launched the Huawei 10 Pro smartphone in the US at a cost of 5 353 Renminbi
(CNY).

The exchange rate was $1 = 6.70 CNY (Chinese Yuan Renminbi)

Calculate the cost of this smartphone in US Dollars. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q6.

The LEGO Group is a privately-owned business in Denmark. The business was founded in 1932 by the
Kristiansen family. The family still owns it. The name LEGO is an abbreviation of two Danish words, 'leg
godt' which means 'play well'. It is now one of the world's largest manufacturers of toys with 15 factories
and over 18,000 employees around the world.

LEGO manufactures toys, games and art materials for boys and girls of all ages, and products from films
such as Star Wars and Harry Potter. It believes that children are the role models of the future and playing
with LEGO can support children in a developing and complex world.

LEGO's revenue in 2019 was 38.5 billion DKK. In 2020 it was 40.81 billion DKK.

LEGO sells pineapple pencil holders for 148.00 DKK. The markup is 15%.

Calculate, to two decimal places, the cost of making the pineapple pencil holders. You are advised to
show your working.
 (2)

(Total for question = 2 marks)

Q7.

Lavender, a Malaysian business, started with bakery, patisserie and takeaway shops. It has now
developed into several other businesses. L.café is a self-serve café selling a variety of cakes and drinks.
L.bistro is a casual dining place with a selection of Asian foods. L.table is a formal restaurant that uses
high quality and organic ingredients.

Lavender are offering a discount of 15% if customers buy 25 cakes. Each cake costs 12 MYR.

Calculate the cost of buying 25 cakes. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q8.
The Alternative Drum School (TADS) was set up in the wealthy area of Cricklade, England in 2008 by
Ollie Tanner who had a passion for and enjoyed drumming. Ollie invested all of his savings into the
drumming school. He saw the potential of being located away from other drumming schools.

Ollie promotes his business by writing columns in local papers, performing at local music festivals and by
word of mouth recommendations. He has invested heavily in computer technology to allow students to
produce the music they enjoy playing.

Ollie finds it difficult to maintain a good work-life balance. Ollie currently works 60 hours a week in a
business that does not have reliable profits.

Figure 1 shows an extract from the cash flow forecast for TADS.

Calculate the closing balance for February. You are advised to show your working.
(2)

(Total for Question = 2 marks)

Q9.

Backyard Shoez is a retail business located in Nairobi, Kenya. It sells a wide range of
shoes, handbags and accessories for ladies only. Backyard Shoez has three shops in
Nairobi. The shops are located in a busy shopping centre where there are other
shoe shops.

(Source adapted from: https://backyardshoez.co.ke/)

Backyard Shoez's monthly fixed costs are 100 000 Ks with a variable cost of 3 500 Ks for a pair of shoes,
at a selling price of 4 300 Ks.

Calculate the break-even point. You are advised to show your working.
 (2)

(Total for question = 2 marks)

Q10.

Tata Motor Company began trading in 1868, and is now part of a large group of companies that is
estimated to be worth $100 billion. Tata Motor Company manufactures a wide range of cars, buses and
trucks. It is India's largest maker of vehicles with manufacturing centres in many countries including
Korea, Italy and the UK.

One of the main aims of Tata Motor Company is to produce goods that the public want and need. It is
currently working on electric cars that are more environmentally friendly. Tata Motor Company plays an
active role in community development such as building schools, houses and investing in the health and
welfare of local people.

(Source adapted from: https://www.tatamotors.com/about-us/)

Tata Motor Company employs over 60,000 employees around the world. In 2017 the turnover was $42
billion, with 9 million car sales. Tata Motor Company has 6,000 car showrooms around the world.

Calculate the average number of vehicles sold in each car showroom. You are advised to show your
workings.
(2)

(Total for question = 2 marks)

Q11.

Backyard Shoez is a retail business located in Nairobi, Kenya. It sells a wide range of
shoes, handbags and accessories for ladies only. Backyard Shoez has three shops in
Nairobi. The shops are located in a busy shopping centre where there are other
shoe shops.

(Source adapted from: https://backyardshoez.co.ke/)

Figure 1 is an extract from the statement of Profit or Loss Account of Backyard Shoez.

Calculate the gross profit margin to 2 decimal places. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q12.

Tata Motor Company began trading in 1868, and is now part of a large group of companies that is
estimated to be worth $100 billion. Tata Motor Company manufactures a wide range of cars, buses and
trucks. It is India's largest maker of vehicles with manufacturing centres in many countries including
Korea, Italy and the UK.

One of the main aims of Tata Motor Company is to produce goods that the public want and need. It is
currently working on electric cars that are more environmentally friendly. Tata Motor Company plays an
active role in community development such as building schools, houses and investing in the health and
welfare of local people.

(Source adapted from: https://www.tatamotors.com/about-us/)

In December 2016 the global vehicle sales for Tata Motor Company were 89,841.

In December 2017 the global vehicle sales figure was 23% higher.

Calculate the global vehicle sales for Tata Motor Company in December 2017. You are advised to show
your working.
 (2)

(Total for question = 2 marks)

Q13.

Haji Biriyani is a restaurant group located in Dhaka, Bangladesh. The business was started in 1939 by
Haji Mohammed Hossain. The restaurant group now has three restaurants in Dhaka. It is famous for
selling Biriyani, a mixed rice dish containing mutton and spices such as black peppercorns and cinnamon.

In 2015, Haji Biriyani's total costs were 11 000 000 Tks. By opening a fourth restaurant the restaurant
group estimates that its total costs will increase by 20%.

Calculate the estimated total costs if Haji Biriyani opens its fourth restaurant.
(2)
.............................................................................................................................................

.............................................................................................................................................

.............................................................................................................................................

.............................................................................................................................................

(Total for question = 2 marks)

Q14.

The LEGO Group is a privately-owned business in Denmark. The business was founded in 1932 by the
Kristiansen family. The family still owns it. The name LEGO is an abbreviation of two Danish words, 'leg
godt' which means 'play well'. It is now one of the world's largest manufacturers of toys with 15 factories
and over 18,000 employees around the world.

LEGO manufactures toys, games and art materials for boys and girls of all ages, and products from films
such as Star Wars and Harry Potter. It believes that children are the role models of the future and playing
with LEGO can support children in a developing and complex world.

LEGO ensures its employees are fully prepared to carry out the tasks they are employed for. It looks after
and encourages its employees to develop and improve their own skills.

An employee working in the offices earns 150 000 DKK. In 2020 LEGO gave its employees a 4.5% pay
increase.
Calculate the employee's new salary. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q15.

Cadbury was founded in 1842 when John Cadbury opened a shop in Birmingham in the UK. The shop
sold cocoa and drinking chocolate. Cadbury is now one of the major chocolate manufacturers in the
world.

In 1918 the first overseas Cadbury factory was opened in Hobart, Tasmania in Australia. Another factory
opened in South Africa in 1938. Cadbury chocolates are sold across the world and other factories have
been opened. Cadbury produces many well-known brands, such as Dairy Milk, Buttons and Crunchie. It
also produces ice cream and cakes.

Cadbury is now part of Mondelez, the largest snack business in the world.

Cadbury donated £7 617 600 to its charity fund in 2017. In 2018 this donation was 1.2% lower.

Calculate the donation Cadbury made in 2018. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q16.

Artify Studio was set up in 2015 by Tay Hui Jae in the busy Kampong Glam area of Singapore. Artify
Studio's aim is to have 'a communal art space where people can come together and paint, where people
would be given as much creative freedom as they would have if they were in their own spaces.'

Artify Studio provides many services including its popular Liberty Art Jam where customers can paint as
well as listen to music. The studio offers a Corporate Art Jam and Regular Kids Classes. Customers can
purchase art materials after attending the studio.

Artify Studio offers a 12% discount to parents if they book the 'Duo Parent and Child Art Camp' and the
'Children's Illustration Workshop' at the same time. The combined price for both courses before being
discounted is S$285.

Calculate the discounted cost of booking both courses at the same time.

You are advised to show your working.

(2)

(Total for question = 2 marks)

Q17.

Apple is a US technology company specialising in branded devices such as iPods,

iPads and iPhones. These brands are well known around the world. In 2015,
Apple was recognised as the most valuable global brand by Interbrand (a market
research group).

In 2016, revenue from Apple products fell for the first time in over ten years.
To improve profitability, Apple now intends to focus on its new products, such as the
Apple watch. Following the collection of primary market research, Apple have also
improved their social media presence and now provide advice and customer support
using Twitter.

Apple uses foreign companies, such as Foxconn, to manufacture its products. This has led to an
improvement in productivity. Foxconn's factories produce 510,000 iPhones per day, using 30,000
workers.
Calculate the daily iPhone productivity of a Foxconn employee.
You are advised to show your working.
(2)
.............................................................................................................................................

.............................................................................................................................................

.............................................................................................................................................

.............................................................................................................................................

(Total for question = 2 marks)

Q18.

The Better Toy Store (TBTS) is a children's toy shop. TBTS has three shops in Singapore. Two of the
shops are located in busy shopping malls and the third is located at the Jewel Changi Airport. TBTS has a
website for customers looking to buy toys online.

TBTS selects toys to sell that are excellent for play, value, design and quality. All TBTS toys are
environmentally friendly.

In 2021, a TBTS toy shop had current liabilities of 36 000 SGD and current assets of 216 000 SGD.

Calculate the current ratio for 2021. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q19.

Nantgwynfaen Organic Farm (NOF) is a farm growing a range of fruit and vegetables. It has a farm shop
and offers accommodation with breakfast. It was set up by Amanda and Ken Edwards in West Wales, UK.

NOF supports farmers by selling local organic produce in its farm shop. The produce from the farm shop
is served to the visitors staying overnight at the farm.
NOF is committed to being environmentally friendly by recycling, avoiding the use of packaging and
reducing the use of electricity.

Figure 2 is an extract from NOF's financial information for 2020.

Calculate, to 2 decimal places, the current ratio for 2020. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q20.

Artify Studio was set up in 2015 by Tay Hui Jae in the busy Kampong Glam area of Singapore. Artify
Studio's aim is to have 'a communal art space where people can come together and paint, where people
would be given as much creative freedom as they would have if they were in their own spaces.'

Artify Studio provides many services including its popular Liberty Art Jam where customers can paint as
well as listen to music. The studio offers a Corporate Art Jam and Regular Kids Classes. Customers can
purchase art materials after attending the studio.

Artify Studio is a profit-making organisation with a social element. It employs seven part-time people, all of
whom are art enthusiasts.

Artify Studio is planning to open a second art studio in the small mining town of Sungai Lembing in
Malaysia. It will recruit highly skilled employees to provide a high standard of service.

In order to advertise the opening of the second art studio, Artify Studio need to look at promotional cost.

It costs 459.50 MYR for 1,000 colour leaflets to be printed. The cost of delivery is 17.87 MYR per hour.
Calculate the cost to Artify Studio of delivering 1,000 printed leaflets which will take 3 hours. You are
advised to show your workings.
(2)

(Total for question = 2 marks)

Q21.

The minimum wage in the UK is £7.70. The UK Government is looking to increase this by 2.5%.

Calculate the new minimum wage after an increase of 2.5%. You are advised to show your working.
(2)

(Total for Question = 2 marks)

Q22.

Can Culleretes is a restaurant based in the Spanish city of Barcelona. Opening in 1786 it is the second
oldest restaurant in Spain. It has been run by the Agut-Manubens family since 1958 and serves a variety
of Mediterranean food. Sisters Montserrat and Alicia are co-owners of the restaurant with six members of
the family working for them. The restaurant is near to popular tourist attractions and close to many other
restaurants. It opens for lunch and dinner only.

Figure 1 is an extract from Can Culleretes' cash-flow forecast.

Calculate the net cash flow for Can Culleretes in June. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q23.

In 1985 Emirates started its airline business with just two aircraft. It is now a well-known airline with over
265 aircraft flying to over 180 destinations around the world.

Emirates has won many awards for service and reliability. Until 2016 passengers rated Emirates the
leading airline to travel with. However, in 2017 its rating dropped from first to fourth.

Figure 3 shows part of a cash flow forecast for Emirates.

Calculate the net cash flow for June 2017. You are advised to show your working.
(2)
 (Total for Question = 2 marks)

Q24.

Backyard Shoez is a retail business located in Nairobi, Kenya. It sells a wide range of
shoes, handbags and accessories for ladies only. Backyard Shoez has three shops in
Nairobi. The shops are located in a busy shopping centre where there are other
shoe shops.

(Source adapted from: https://backyardshoez.co.ke/)

Backyard Shoez buys children's shoes for 2 400 Ks and sells them for 3 200 Ks.

Calculate the markup on these shoes. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q25.

The Alternative Drum School (TADS) was set up in the wealthy area of Cricklade, England in 2008 by
Ollie Tanner who had a passion for and enjoyed drumming. Ollie invested all of his savings into the
drumming school. He saw the potential of being located away from other drumming schools.

Ollie promotes his business by writing columns in local papers, performing at local music festivals and by
word of mouth recommendations. He has invested heavily in computer technology to allow students to
produce the music they enjoy playing.

Ollie finds it difficult to maintain a good work-life balance. Ollie currently works 60 hours a week in a
business that does not have reliable profits.
TADS buys a drum kit for £190 and sells it for £350.

Calculate, to two decimal places, the mark up on this drum kit.

(2)

(Total for Question = 2 marks)

Q26.

Huawei is a leading global provider of information and communications technology, infrastructure and
smart devices. In March 2011, over one million of its C8500 smartphones were sold in China following its
launch.

It now manufactures a wide variety of different products including Huawei smartphones, watches and
tablets. In recent years Huawei has won many awards. In 2018 it was named the 68th most valuable
brand by Best Global Brands. In 2019 it introduced a smartphone which had new photographic
technology.

Huawei constantly has to introduce new products to the market to keep up to date with its competitors. If it
does not do this then there is the possibility that other businesses will succeed where Huawei will not.

In 2018 Huawei took out a one-year loan for 69 941 000 000 Renminbi (CNY) from a bank. The bank
charged interest of 4.5% on the loan.

(c) Calculate the interest Huawei would pay. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q27.

Apple is a US technology company specialising in branded devices such as iPods,

iPads and iPhones. These brands are well known around the world. In 2015,
Apple was recognised as the most valuable global brand by Interbrand (a market
research group).

In 2016, revenue from Apple products fell for the first time in over ten years.
To improve profitability, Apple now intends to focus on its new products, such as the
Apple watch. Following the collection of primary market research, Apple have also
improved their social media presence and now provide advice and customer support
using Twitter.

The selling price of an iPhone 6 is US$800 and the cost of sales is US$200.

Calculate the gross profit margin on an iPhone 6. You are advised to show your working.
(2)
.............................................................................................................................................

.............................................................................................................................................

.............................................................................................................................................

.............................................................................................................................................

(Total for question = 2 marks)

Q28.

Lavender, a Malaysian business, started with bakery, patisserie and takeaway shops. It has now
developed into several other businesses. L.café is a self-serve café selling a variety of cakes and drinks.
L.bistro is a casual dining place with a selection of Asian foods. L.table is a formal restaurant that uses
high quality and organic ingredients.

Figure 1 is an extract from Lavender's Statement of Comprehensive Income. Use the information below
and then answer the following questions.

Using Figure 1, calculate the gross profit margin for L.café. You are advised to show your workings.
(2)
 (Total for question = 2 marks)

Q29.

Can Culleretes is a restaurant based in the Spanish city of Barcelona. Opening in 1786 it is the second
oldest restaurant in Spain. It has been run by the Agut-Manubens family since 1958 and serves a variety
of Mediterranean food. Sisters Montserrat and Alicia are co-owners of the restaurant with six members of
the family working for them. The restaurant is near to popular tourist attractions and close to many other
restaurants. It opens for lunch and dinner only.

Figure 2 is an extract of financial information from Can Culleretes.

Calculate, to 2 decimal places, the gross profit margin. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q30.
Cadbury is part of the multinational Mondelez business. In 2017 Mondelez had a gross profit of $10.3
million and a revenue of $25.9 million.

Calculate, to two decimal places, the gross profit margin. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q31.

Tata Motor Company began trading in 1868, and is now part of a large group of companies that is
estimated to be worth $100 billion. Tata Motor Company manufactures a wide range of cars, buses and
trucks. It is India's largest maker of vehicles with manufacturing centres in many countries including
Korea, Italy and the UK.

One of the main aims of Tata Motor Company is to produce goods that the public want and need. It is
currently working on electric cars that are more environmentally friendly. Tata Motor Company plays an
active role in community development such as building schools, houses and investing in the health and
welfare of local people.

(Source adapted from: https://www.tatamotors.com/about-us/)

The Chairman of Tata Motor Company works closely with the Finance Department to ensure that the
company maintains its financial position. Figure 2 shows the revenue for Tata Motor Company, 2011–
2017.

Calculate to 2 decimal places, the percentage increase in revenue from 2011 to 2017. You are advised to
show your working.
(2)
 (Total for question = 2 marks)

Q32.

Hans Raj Mahajan Worldwide (HRMW) is an established manufacturer of sports equipment and
sportswear in India. It is a family-run business, which started trading in 1925 and since then has grown to
become an established business. Its products are exported across the world. These include footballs,
boxing gloves, hockey sticks and sports clothing.

Figure 2 shows HRMW's estimated revenues.

Calculate, to two decimal places, the percentage increase from 2020-2021 to 2021-2022. You are
advised to show your working.
(2)

(Total for question = 2 marks)

Q33.

Nantgwynfaen Organic Farm (NOF) is a farm growing a range of fruit and vegetables. It has a farm shop
and offers accommodation with breakfast. It was set up by Amanda and Ken Edwards in West Wales, UK.
NOF supports farmers by selling local organic produce in its farm shop. The produce from the farm shop
is served to the visitors staying overnight at the farm.

NOF is committed to being environmentally friendly by recycling, avoiding the use of packaging and
reducing the use of electricity.

Figure 1 is an extract from NOF's statement of comprehensive income.

Calculate the operating profit margin. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q34.

Loaf, a bakery and cookery school, was set up by Tom Baker in Birmingham, UK. The aim is to promote
real food and healthy living. It wants to use its skilled chefs to bring real food to the kitchens of the local
community. It uses its cookery courses and bakery to help restore the local high street. Loaf also hosts
pop-up events (one-off events) in different parts of the city where it shows off its products. Any profit
made through these events is directed towards furthering Loaf's charitable work.

Loaf operates a scheme called 'Waste Not'. At the end of the day Loaf donates any leftover food to
charities who distribute it to local people. In addition, Loaf provides a recycling hub for the local
community.

Loaf is a social enterprise with nine members of staff; six of whom are directors.

Figure 2 is an extract from Loaf's statement of comprehensive income in 2018.

Calculate the operating profit margin for Loaf in 2018. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q35.

Huawei is a leading global provider of information and communications technology, infrastructure and
smart devices. In March 2011, over one million of its C8500 smartphones were sold in China following its
launch.

It now manufactures a wide variety of different products including Huawei smartphones, watches and
tablets. In recent years Huawei has won many awards. In 2018 it was named the 68th most valuable
brand by Best Global Brands. In 2019 it introduced a smartphone which had new photographic
technology.

Figure 2 is part of the statement of comprehensive income for Huawei in 2018.

Calculate, to two decimal places, the operating profit margin for Huawei. You are advised to show your
working.
(2)
 (Total for question = 2 marks)

Q36.

NEXT is a well-known clothing retailer that operates in 70 countries and employs over 43,000 employees.
Since NEXT commenced trading it has introduced many other products to its range such as home
interiors, flowers and a wedding list service.

In 1999 NEXT launched its own online shopping platform, enabling customers to purchase its products
where ever they live. It continues to improve its customer service by introducing new initiatives such as
next day delivery.

NEXT mainly uses its own factories for production. However, it does purchase some clothes such as
ladies dresses from Turkish factories.

Of NEXT's 43,000 employees, 70% are women.

Calculate the number of women working at NEXT. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q37.
Nantgwynfaen Organic Farm (NOF) is a farm growing a range of fruit and vegetables. It has a farm shop
and offers accommodation with breakfast. It was set up by Amanda and Ken Edwards in West Wales, UK.

NOF supports farmers by selling local organic produce in its farm shop. The produce from the farm shop
is served to the visitors staying overnight at the farm.

NOF is committed to being environmentally friendly by recycling, avoiding the use of packaging and
reducing the use of electricity.

NOF is looking to expand its product range by making and selling tubs of ice cream.

A tub of ice cream will sell for £2.50.

Variable costs will be £1.10 per tub of ice cream with fixed costs of £77 per day.

Calculate the number of tubs of ice cream NOF will have to sell each day to break-even. You are advised
to show your working.
(2)

(Total for question = 2 marks)

Q38.

Hans Raj Mahajan Worldwide (HRMW) is an established manufacturer of sports equipment and
sportswear in India. It is a family-run business, which started trading in 1925 and since then has grown to
become an established business. Its products are exported across the world. These include footballs,
boxing gloves, hockey sticks and sports clothing.

HRMW employs staff to design the products it manufactures. The aim is to add features so that the
products are better than any others on the market.

If HRMW produce tennis racquets with the following costs:

Fixed costs = 300 000 Rupees

Variable costs = 3 000 Rupees

Sale price = 5 000 Rupees

Calculate the number of tennis racquets that would have to be made to break-even. You are advised to
show your working.
 (2)

(Total for question = 2 marks)

Q39.

Loaf, a bakery and cookery school, was set up by Tom Baker in Birmingham, UK. The aim is to promote
real food and healthy living. It wants to use its skilled chefs to bring real food to the kitchens of the local
community. It uses its cookery courses and bakery to help restore the local high street. Loaf also hosts
pop-up events (one-off events) in different parts of the city where it shows off its products. Any profit
made through these events is directed towards furthering Loaf's charitable work.

Loaf operates a scheme called 'Waste Not'. At the end of the day Loaf donates any leftover food to
charities who distribute it to local people. In addition, Loaf provides a recycling hub for the local
community.

Loaf is a social enterprise with nine members of staff; six of whom are directors.

Loaf is considering opening a second bakery to meet the increased demand for its products and the
success of its cookery school.

Loaf is thinking of running a course on making pasta. The course will be priced at £60 per person.
Variable costs will be £10. Fixed cost will be £500.

Calculate the number of people needed to break-even for this course. You are advised to show your
workings.
(2)
 (Total for question = 2 marks)

Q40.

In 1985 Emirates started its airline business with just two aircraft. It is now a well-known airline with over
265 aircraft flying to over 180 destinations around the world.

Emirates has won many awards for service and reliability. Until 2016 passengers rated Emirates the
leading airline to travel with. However, in 2017 its rating dropped from first to fourth.

Saving the environment in which we all live is important. The Chairman ensures that Emirates works hard
to recycle many of the materials it uses and to reduce atmospheric pollution from the fuel that powers its
aircraft. Water consumption for washing aircraft has been reduced, newspapers and other paper products
collected from Emirates aircraft cabins are recycled. Emirates uses a variety of methods to monitor its
employees when carrying out these jobs. For these roles Emirates uses a short chain of command.

Emirates used 13,457,776 litres of petrol in 2016–2017. In 2017–2018 it reduced this figure by 12.5%.

Calculate the number of litres of petrol that Emirates used in 2017–2018. You are advised to show your
workings.
(2)

(Total for Question = 2 marks)

Q41.

Haji Biriyani is a restaurant group located in Dhaka, Bangladesh. The business was started in 1939 by
Haji Mohammed Hossain. The restaurant group now has three restaurants in Dhaka. It is famous for
selling Biriyani, a mixed rice dish containing mutton and spices such as black peppercorns and cinnamon.

Figure 2 shows the fixed and variable costs of making one biriyani meal at Haji Biriyani's main restaurant
in Dhaka.
Calculate the total costs of making 10 biriyani meals.
(2)
.............................................................................................................................................

.............................................................................................................................................

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(Total for question = 2 marks)

Q42.

The Better Toy Store (TBTS) is a children's toy shop. TBTS has three shops in Singapore. Two of the
shops are located in busy shopping malls and the third is located at the Jewel Changi Airport. TBTS has a
website for customers looking to buy toys online.

TBTS selects toys to sell that are excellent for play, value, design and quality. All TBTS toys are
environmentally friendly.

Figure 1 is a financial extract from TBTS based on the sale of 160 wooden toy carts.

Calculate the total costs for TBTS of making 160 wooden toy carts. You are advised to show your
working.
(2)
 (Total for question = 2 marks)

Q43.

The Better Toy Store (TBTS) is a children's toy shop. TBTS has three shops in Singapore. Two of the
shops are located in busy shopping malls and the third is located at the Jewel Changi Airport. TBTS has a
website for customers looking to buy toys online.

TBTS selects toys to sell that are excellent for play, value, design and quality. All TBTS toys are
environmentally friendly.

TBTS lets customers sign up for a Very Important Person (VIP) membership on its website. The website
gives VIP members special rates and exclusive offers.

TBTS sells dinosaur toys for 22.80 SGD. VIP members get a discount of 15%.

Calculate the total cost to a VIP member of buying 17 dinosaur toys. You are advised to show your
working.
(2)

(Total for question = 2 marks)

Q44.

In 1985 Emirates started its airline business with just two aircraft. It is now a well-known airline with over
265 aircraft flying to over 180 destinations around the world.
Emirates has won many awards for service and reliability. Until 2016 passengers rated Emirates the
leading airline to travel with. However, in 2017 its rating dropped from first to fourth.

To train as a pilot can be very expensive. The cost of accommodation and meals as well as the actual
cost of training must be taken into account. In 2018 the cost to an individual to become a pilot was 730
000 AED. Emirates aims to employ those pilots that have the best qualifications and skills.

Competition for air travel has increased over recent years as more and more people travel around the
world, for work and pleasure. People are also taking holidays to many more different places. Lower cost
airlines are entering the market to attract travellers.

Many trainee pilots take a bank loan of 730 000 AED to pay for their training.

Calculate the total cost of a pilot's loan if the interest rate was 3%. You are advised to show your
workings.
(2)

(Total for Question = 2 marks)

Q45.

Can Culleretes is a restaurant based in the Spanish city of Barcelona. Opening in 1786 it is the second
oldest restaurant in Spain. It has been run by the Agut-Manubens family since 1958 and serves a variety
of Mediterranean food. Sisters Montserrat and Alicia are co-owners of the restaurant with six members of
the family working for them. The restaurant is near to popular tourist attractions and close to many other
restaurants. It opens for lunch and dinner only.

Can Culleretes offers a fixed price dinner menu at €38.40 per person. Groups of five or more are given a
discount of 12.5% on their total bill.

Calculate the total cost of a group of 12 people ordering from the fixed price dinner menu. You are
advised to show your working.
(2)
 (Total for question = 2 marks)

Q46.

Artify Studio was set up in 2015 by Tay Hui Jae in the busy Kampong Glam area of Singapore. Artify
Studio's aim is to have 'a communal art space where people can come together and paint, where people
would be given as much creative freedom as they would have if they were in their own spaces.'

Artify Studio provides many services including its popular Liberty Art Jam where customers can paint as
well as listen to music. The studio offers a Corporate Art Jam and Regular Kids Classes. Customers can
purchase art materials after attending the studio.

Figure 1 is an extract from the Artify Studio statement of profit and loss.

Calculate, to two decimal places, the gross profit margin for Artify Studio. You are advised to show your
working.
(2)
 (Total for question = 2 marks)

Q47.

The LEGO Group is a privately-owned business in Denmark. The business was founded in 1932 by the
Kristiansen family. The family still owns it. The name LEGO is an abbreviation of two Danish words, 'leg
godt' which means 'play well'. It is now one of the world's largest manufacturers of toys with 15 factories
and over 18,000 employees around the world.

LEGO manufactures toys, games and art materials for boys and girls of all ages, and products from films
such as Star Wars and Harry Potter. It believes that children are the role models of the future and playing
with LEGO can support children in a developing and complex world.

In 2019 LEGO had current assets of 34 946 million DKK and current liabilities of 12 763 million DKK.

Calculate, to two decimal places, the current ratio in 2019. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q48.

NEXT is a well-known clothing retailer that operates in 70 countries and employs over 43,000 employees.
Since NEXT commenced trading it has introduced many other products to its range such as home
interiors, flowers and a wedding list service.

In 1999 NEXT launched its own online shopping platform, enabling customers to purchase its products
where ever they live. It continues to improve its customer service by introducing new initiatives such as
next day delivery.

NEXT mainly uses its own factories for production. However, it does purchase some clothes such as
ladies dresses from Turkish factories.

NEXT continually monitors progress so that it can measure the success of its business. It aims to do this
through improving manufacturing techniques and cutting costs, whilst still maintaining the quality of the
goods produced.

Figure 2 shows selected financial information for NEXT in 2019.

Calculate to two decimal places the operating profit margin for NEXT in 2019. You are advised to show
your working.
(2)

(Total for question = 2 marks)

Q49.

Lavender, a Malaysian business, started with bakery, patisserie and takeaway shops. It has now
developed into several other businesses. L.café is a self-serve café selling a variety of cakes and drinks.
L.bistro is a casual dining place with a selection of Asian foods. L.table is a formal restaurant that uses
high quality and organic ingredients.

In 2017 one of Lavender's outlets had current assets of 120 000 MYR and current liabilities of 90 000
MYR.

Calculate to 2 significant figures the current ratio for 2017. You are advised to show your workings.
(2)
 (Total for question = 2 marks)

Q50.

Cadbury makes a chocolate cake for £6.50. A tax of 20% is added to give the selling price.

Calculate the selling price of the chocolate cake. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q51.

Yellow, a clothing retailer, is part of BEXIMCO Textiles Limited. Yellow opened in 2004 and now has 15
stores across Bangladesh and Pakistan, with new stores opening in Dubai and Toronto. Yellow clothes
are mainly manufactured in Bangladesh. Some are bought from manufacturers in other countries. Yellow
expects its suppliers and manufacturers to provide fair wages and safe working conditions. It requires
every manufacturer to commit to meeting recognised health and safety standards, be ethical and
environmentally sustainable. It encourages all of its manufacturers to use Kaizen.

Yellow could use the cost plus method of pricing for the clothes it sells.

Calculate the selling price of a T-shirt that costs Yellow 252 (AED) if the mark-up was 17%. You are
advised to show your working.
(2)
 (Total for question = 2 marks)

Q52.

Loaf, a bakery and cookery school, was set up by Tom Baker in Birmingham, UK. The aim is to promote
real food and healthy living. It wants to use its skilled chefs to bring real food to the kitchens of the local
community. It uses its cookery courses and bakery to help restore the local high street. Loaf also hosts
pop-up events (one-off events) in different parts of the city where it shows off its products. Any profit
made through these events is directed towards furthering Loaf's charitable work.

Loaf operates a scheme called 'Waste Not'. At the end of the day Loaf donates any leftover food to
charities who distribute it to local people. In addition, Loaf provides a recycling hub for the local
community.

Loaf is a social enterprise with nine members of staff; six of whom are directors.

Tom Baker is looking to increase his profits so Loaf can support more local projects. The revenue from his
pop-up events in 2016 was £23 546. In 2017 this increased by 3%.

Calculate the revenue for 2017. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q53.

NEXT is a well-known clothing retailer that operates in 70 countries and employs over 43,000 employees.
Since NEXT commenced trading it has introduced many other products to its range such as home
interiors, flowers and a wedding list service.

In 1999 NEXT launched its own online shopping platform, enabling customers to purchase its products
where ever they live. It continues to improve its customer service by introducing new initiatives such as
next day delivery.

NEXT mainly uses its own factories for production. However, it does purchase some clothes such as
ladies dresses from Turkish factories.

NEXT predicts that its £727 million sales will grow by 3.2% next year.

Calculate the predicted sales for next year. You are advised to show your working.
(2)

(Total for question = 2 marks)

Q54.

Yellow, a clothing retailer, is part of BEXIMCO Textiles Limited. Yellow opened in 2004 and now has 15
stores across Bangladesh and Pakistan, with new stores opening in Dubai and Toronto. Yellow clothes
are mainly manufactured in Bangladesh. Some are bought from manufacturers in other countries. Yellow
expects its suppliers and manufacturers to provide fair wages and safe working conditions. It requires
every manufacturer to commit to meeting recognised health and safety standards, be ethical and
environmentally sustainable. It encourages all of its manufacturers to use Kaizen.

In 2017 BEXIMCO had a total revenue of £147.5 million. Yellow's revenue for the same year was £10.68
million.

Calculate, to 2 decimal places, the percentage of revenue that Yellow contributed to BEXIMCO's total
revenue.
(2)
(Total for question = 2 marks)