Title Calculation Solutions - Section 3.pdf ✅

AS Business / Calculation Solution / Section 3 AATIK TASNEEM | O/A-LEVEL | BUSINESS & ECONOMICS | 0304 1122845 1 CALCULATION SOLUTIONS – SECTION 3 Calculation 1 – Market Sales / Market Share (M/J 2017) | Q1 Market Share of three largest producers = 28% + 22% + 20% = 70% Value of Sales = 70% x 50m = $35m (M/J 2018, V2), Q1 (i) 40+ (ii) Skiing Holidays = 100 Safari Holidays = 95 Cruise Holidays = 105 (100 / 300) x 100 = 33.3% (O/N 2016, V1) | Q1 BH = 100% - 85% = 15% Market Value of BH= 600,000 x 15% = $90,000 (O/N 2018, V1), Q1 Jam percentage = 100% - 90% = 10% Revenue = $1m x 10% = $100,000
AS Business / Calculation Solution / Section 3 AATIK TASNEEM | O/A-LEVEL | BUSINESS & ECONOMICS | 0304 1122845 2 Calculation 2 – Percentage change in sales (O/N 2019, V2), Q2 (Change in market size / Original Market Size) x 100 (1.5 / 60) x 100 = 2.5% (M/J 2016, V1) | Q1 Total Revenue 2013 = 855 + 745 + 550 + 350 = 2500 Total Revenue 2015 = 770 + 755 + 450 + 400 = 2375 Percentage Decrease = (2375 – 2500) / 2500 x 100 = -5% (O/N 2023, V3) | Q2 (New – Old) / Old x 100 (7.5 – 5) / 5 x 100 = 50%
AS Business / Calculation Solution / Section 3 AATIK TASNEEM | O/A-LEVEL | BUSINESS & ECONOMICS | 0304 1122845 3 Calculation 3 – Cost Plus Pricing (O/N 2013) | Q2 Cost + Markup = Selling Price $35 + (20% x 35) = $42 (M/J 2013, V3), Q1 Cost + Markup = Selling Price Total Cost per unit = 0.80 + 0.30 = $1.1 1.1 + (70% x 1.1) = $1.87 (M/J 2017, V3) | Q1 Cost + Markup = Selling Price Total Cost per unit Labor cost = 20 x 10 = $200 Material Cost = $250 Packaging = $50 Total Cost per Unit = $500 $500 + (50% x 500) = $750 (F/M 2023, V2), Q2 Cost + Markup = Selling Price Total Variable Cost = 250 x 1.2 = $300 Fixed Cost = $150 Total Cost = $450 450 + (50% x 450) = $675