10.2. Analysis of published accounts
A subsection of Business Studies, 9609, through 10. Finance and accounting (A Level)
Listing 10 of 12 questions
Fish and Chips (FC) Min is a sole trader who is the owner and overall manager of FC. Min started the business as a restaurant but FC has grown so that it now operates in the primary, secondary and tertiary sectors. Min sees this as FC’s unique selling point (USP). Min allocates costs and revenues to each section of the business. She then calculates the profit margin for each section (see Table 3). Table 3: Overview of FC Sector Activity Employees Annual revenue ($000s) Profit margin Primary Catching fish using FC’s own boat 1 captain 2 fishermen 2% Secondary Cooking fish in FC’s own kitchen 1 head chef 2 assistant chefs 1% Tertiary Serve the cooked fish with chips and vegetables in FC’s own restaurant 1 restaurant supervisor 3 servers 1 cleaner 15% Min considers herself to be an excellent manager, having studied business at university. She manages her employees using Herzberg’s motivation theory. Min has had an objective of growth but she is now happy with the size of FC. She intends to change the objective to profit maximisation. Define the term ‘unique selling point (USP)’ (line 3). Briefly explain ‘Herzberg’s motivation theory’ (line 18). Using Table 3, calculate the total annual profit for FC. Explain one problem that Min might have in allocating costs. Analyse two appropriate ways that could be used to measure the size of FC. Evaluate which stakeholders might be most affected by the change in FC’s business objective from growth to profit maximisation.
9609_w18_qp_23
THEORY
2018
Paper 2, Variant 3
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Questions Discovered
12