Unit 2 Finance Practice

10 Questions | Total Attempts: 63

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Unit 2 Finance Practice

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Questions and Answers
  • 1. 
    Which two of these items are fixed costs for a florist?Click on two of these boxes:
    • A. 

      Staff wages

    • B. 

      Flowers

    • C. 

      Monthly rent

    • D. 

      Ribbons and wrapping paper

  • 2. 
    Joanne runs her own nail bar but is not sure how to calculate her net profit. In the box below, enter the formula she should use.
  • 3. 
    Joanne would like to increase her net profit next year. Give three actions she could take.
  • 4. 
    Seb works for a garden centre and his boss is thinking about building an extension to display lawnmowers for sale. The table below shows their predicted figures for the next year. Selling price per lawnmower£50Variable cost per lawnmower£20Fixed costs£5000The formula to calculate break-even isBreak even = Fixed Costs / (Selling price per unit - variable cost per unit)How many lawnmowers would the business need to sell to break-even?Put your answer in the box below. 
  • 5. 
    Outline what is meant by the term 'break-even point'.
  • 6. 
    Alfie has his own car valeting business. Identify the following two running costs
    • A. 

      Pressure washer

    • B. 

      Car shampoo and polish

    • C. 

      Promotional leaflet

    • D. 

      Telephone bill

  • 7. 
    Misha makes children's T-shirts which she sells for £5.50 each. Last year she sold 7000 T-shirts.Calculate her total revenue.
  • 8. 
    Identify which one of the following expenditure items would count towards her cost of sales.
    • A. 

      Sewing machine

    • B. 

      Cotton material

    • C. 

      Advertising costs

    • D. 

      Internet connection

  • 9. 
    Marsha has been in business for one year as a mobile hairdresser and is preparing her income statement (profit and loss account). Explain how the information it provides can help her to improve her financial position.