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AS & A Level · AS/A Level

Business

Finance and business decisions

Name: ____________________Date: October 10, 2026
  1. 1.

    A firm sells units for GBP 30 each, variable cost is GBP 18 per unit and fixed costs are GBP 6000. Calculate contribution per unit and break-even output.

    [3 marks] · no calculator
  2. 2.

    A project costs GBP 10000 now and produces GBP 6000 at each year-end for two years. Use discount factors 0.909 and 0.826. Calculate net present value and give one limitation of using it alone.

    [4 marks] · no calculator
  3. 3.

    A tutoring start-up has limited cash and spare teacher capacity. It can spend GBP 3000 on broad paid ads or GBP 3000 on a small measured referral pilot. Evaluate the choice using conversion, capacity and cash-flow risk.

    [5 marks] · no calculator

Original, unofficial practice questions from SubjectScout — not official past-paper questions.

Marking points are indicative, not an official mark scheme. Accept equivalent valid methods and supported interpretations that address the task; award each mark once without requiring the model wording.