QUESTION 1

• (a) (i) Define the term ‘fixed costs’ (line 5). [2]
• (ii) Briefly explain the term ‘sole trader’ (line 1). [3]
• (b) (i) Calculate the break-even output for packs of apples sold by AF. [3]
• (ii) Explain one possible use to Desi of break-even analysis. [3]
• (c) Analyse one advantage and one disadvantage to AF of leasing the new machinery for producing apple juice. [8]
• (d) Evaluate the importance of appropriate packaging for the new apple juice. [11]

QUESTION B

• (a) (i) Define the term ‘Unique Selling Point (USP)’ (line 8). [2]
• (ii) Briefly explain the term ‘customer orientated’ (line 6). [3]
• (b) (i) Calculate the labour turnover for the Night Team. [3]
• (ii) Explain one problem for DC of high labour turnover. [3]
• (c) Analyse two disadvantages to DC of being a small business. [8]
• (d) Discuss ways in which DC could solve the motivation problems in the Night Team. [11]