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href="../22093/glossary-break-even-analysis.html" title="Glossary: Break-even analysis">Glossary: Break-even analysis</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21747/34-final-accounts.html" title="3.4 Final accounts">3.4 Final accounts</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../31367/glossary-final-accounts.html" title="Glossary: Final accounts">Glossary: Final accounts</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21748/35-profitability-and-liquidity-ratio-analysis.html" title="3.5 Profitability and liquidity ratio analysis">3.5 Profitability and liquidity ratio analysis</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25111/glossary-profitability-and-liquidity-ratio-analysis.html" title="Glossary: Profitability and liquidity ratio analysis">Glossary: Profitability and liquidity ratio analysis</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21749/36-efficiency-ratio-analysis-hl-only.html" title="3.6 Efficiency ratio analysis (HL only)">3.6 Efficiency ratio analysis (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25114/glossary-efficiency-ratios.html" title="Glossary: Efficiency ratios">Glossary: Efficiency ratios</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21750/37-cash-flow.html" title="3.7 Cash flow">3.7 Cash flow</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25118/cash-flow-forecasts.html" title="Cash flow forecasts">Cash flow forecasts</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../31376/glossary-cash-flow.html" title="Glossary: Cash flow">Glossary: Cash flow</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21751/38-investment-appraisal.html" title="3.8 Investment appraisal">3.8 Investment appraisal</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../31377/glossary-investment-appraisal-.html" title="Glossary: Investment appraisal ">Glossary: Investment appraisal </a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21752/39-budgets-hl-only.html" title="3.9 Budgets (HL only)">3.9 Budgets (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../31378/39-budgets-hl-only-glossary.html" title="3.9 Budgets (HL Only) Glossary">3.9 Budgets (HL Only) Glossary</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../21684/unit-4.html" title="Unit 4">Unit 4</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21767/41-the-role-of-marketing.html" title="4.1 The role of marketing">4.1 The role of marketing</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25618/glossary-the-role-of-marketing.html" title="Glossary: The role of marketing">Glossary: The role of marketing</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21768/42-marketing-planning.html" title="4.2 Marketing planning">4.2 Marketing planning</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../28328/glossary-marketing-planning.html" title="Glossary: Marketing planning">Glossary: Marketing planning</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21769/43-sales-forecasting-hl-only.html" title="4.3 Sales forecasting (HL only)">4.3 Sales forecasting (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25713/glossary-sales-forecasting.html" title="Glossary: Sales forecasting">Glossary: Sales forecasting</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21713/44-market-research.html" title="4.4 Market research">4.4 Market research</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25208/glossary-market-research.html" title="Glossary: Market research">Glossary: Market research</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21770/45-the-four-ps.html" title="4.5 The four Ps">4.5 The four Ps</a></li><ul class="level-3 "><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Product">Product</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../22627/glossary-product.html" title="Glossary: Product">Glossary: Product</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22525/price.html" title="Price">Price</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../22548/glossary-price.html" title="Glossary: Price">Glossary: Price</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22567/promotion.html" title="Promotion">Promotion</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../22704/45-promotion-glossary.html" title="4.5 Promotion - Glossary">4.5 Promotion - Glossary</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22745/place.html" title="Place">Place</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../23813/45-place-glossary.html" title="4.5 Place - Glossary">4.5 Place - Glossary</a></li></ul></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21774/46-the-extended-marketing-mix-7-ps-hl.html" title="4.6 The extended marketing mix (7 Ps) (HL)">4.6 The extended marketing mix (7 Ps) (HL)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../23814/glossary-the-extended-marketing-mix-hl.html" title="Glossary: The extended marketing mix (HL)">Glossary: The extended marketing mix (HL)</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21772/47-international-marketing-hl-only.html" title="4.7 International marketing (HL only)">4.7 International marketing (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../23815/glossary-international-marketing-hl.html" title="Glossary: International Marketing (HL)">Glossary: International Marketing (HL)</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21773/48-e-commerce.html" title="4.8 E-commerce">4.8 E-commerce</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../23797/glossary-e-commerce.html" title="Glossary: E-commerce">Glossary: E-commerce</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../21688/unit-5.html" title="Unit 5">Unit 5</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21937/51-the-role-of-operations-management.html" title="5.1 The role of operations management">5.1 The role of operations management</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24843/glossary.html" title="Glossary">Glossary</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21938/52-production-methods.html" title="5.2 Production methods">5.2 Production methods</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24848/glossary.html" title="Glossary">Glossary</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21939/53-lean-production-quality-management-hl.html" title="5.3 Lean production & quality management (HL)">5.3 Lean production & quality management (HL)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24839/glossary-lean-production-and-quality-management.html" title="Glossary: Lean Production and quality management">Glossary: Lean Production and quality management</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21700/54-location.html" title="5.4 Location">5.4 Location</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24959/glossary.html" title="Glossary">Glossary</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21695/55-production-planning-hl.html" title="5.5 Production planning (HL)">5.5 Production planning (HL)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25032/glossary-production-planning.html" title="Glossary: Production planning">Glossary: Production planning</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../33222/56-research-development-hl.html" title="5.6 Research & development (HL)">5.6 Research & development (HL)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../34014/glossary-research-development.html" title="Glossary: Research & Development">Glossary: Research & Development</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21941/57-crisis-management-contingency-planning-hl.html" title="5.7 Crisis management & contingency planning (HL)">5.7 Crisis management & contingency planning (HL)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25042/glossary.html" title="Glossary">Glossary</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../25115/cuegis.html" title="CUEGIS">CUEGIS</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="The 6 CUEGIS concepts">The 6 CUEGIS concepts</a></li><ul class="level-3 "><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Ethics">Ethics</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../21954/mcdonalds-supersize-me.html" title="McDonald's - Supersize Me">McDonald's - Supersize Me</a></li></ul></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="The CUEGIS essay">The CUEGIS essay</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22876/planning-your-cuegis-essay.html" title="Planning your CUEGIS essay">Planning your CUEGIS essay</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../33806/paper-2-section-c-questions.html" title="Paper 2 Section C Questions">Paper 2 Section C Questions</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../33959/the-ia.html" title="The IA">The IA</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="HL IA">HL IA</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22190/35-sample-research-questions-for-the-hl-ia.html" title="35 sample research questions for the HL IA">35 sample research questions for the HL IA</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22200/hl-ia-student-checklist.html" title="HL IA - Student Checklist">HL IA - Student Checklist</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../33508/ia-hl-poster.html" title="IA HL Poster">IA HL Poster</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="SL IA">SL IA</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22146/sl-ia-20-sample-titles.html" title="SL IA - 20 Sample Titles">SL IA - 20 Sample Titles</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38181/faq-about-the-sl-ia.html" title="FAQ about the SL IA">FAQ about the SL IA</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../22114/exams.html" title="Exams">Exams</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../22115/command-terms.html" title="Command Terms">Command Terms</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../36599/glossary-of-key-terms.html" title="Glossary of key terms">Glossary of key terms</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../38059/flashcards-revision.html" title="Flashcards - Revision">Flashcards - Revision</a></li><ul class="level-3 "><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38060/flashcards-revision-unit-1.html" title="Flashcards - Revision (Unit 1)">Flashcards - Revision (Unit 1)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38056/unit-11-revision-flashcards.html" title="Unit 1.1 Revision Flashcards">Unit 1.1 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38061/unit-12-revision-flashcards.html" title="Unit 1.2 Revision Flashcards">Unit 1.2 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38067/unit-13-revision-flashcards.html" title="Unit 1.3 Revision Flashcards">Unit 1.3 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38092/unit-14-revision-flashcards.html" title="Unit 1.4 Revision Flashcards">Unit 1.4 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38096/unit-15-revision-flashcards.html" title="Unit 1.5 Revision Flashcards">Unit 1.5 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38102/unit-16-revision-flashcards.html" title="Unit 1.6 Revision Flashcards">Unit 1.6 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38103/unit-17-revision-flashcards.html" title="Unit 1.7 Revision Flashcards">Unit 1.7 Revision Flashcards</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38114/flashcards-revision-unit-2.html" title="Flashcards - Revision (Unit 2)">Flashcards - Revision (Unit 2)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38121/unit-21-revision-flashcards.html" title="Unit 2.1 Revision Flashcards">Unit 2.1 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38125/unit-22-revision-flashcards.html" title="Unit 2.2 Revision Flashcards">Unit 2.2 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38126/unit-23-revision-flashcards.html" title="Unit 2.3 Revision Flashcards">Unit 2.3 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38144/unit-24-revision-flashcards.html" title="Unit 2.4 Revision Flashcards">Unit 2.4 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38146/unit-25-revision-flashcards.html" title="Unit 2.5 Revision Flashcards">Unit 2.5 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38147/unit-26-revision-flashcards-hl-only.html" title="Unit 2.6 Revision Flashcards (HL only)">Unit 2.6 Revision Flashcards (HL only)</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38149/flashcards-revision-unit-3.html" title="Flashcards - Revision (Unit 3)">Flashcards - Revision (Unit 3)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38153/unit-31-revision-flashcards.html" title="Unit 3.1 Revision Flashcards">Unit 3.1 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38154/unit-32-revision-flashcards.html" title="Unit 3.2 Revision Flashcards">Unit 3.2 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38182/unit-33-revision-flashcards.html" title="Unit 3.3 Revision Flashcards">Unit 3.3 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38183/unit-34-revision-flashcards.html" title="Unit 3.4 Revision Flashcards">Unit 3.4 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38191/unit-35-revision-flashcards.html" title="Unit 3.5 Revision Flashcards">Unit 3.5 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38192/unit-36-revision-flashcards-hl.html" title="Unit 3.6 Revision Flashcards (HL)">Unit 3.6 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38193/unit-37-revision-flashcards.html" title="Unit 3.7 Revision Flashcards">Unit 3.7 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38194/unit-38-revision-flashcards.html" title="Unit 3.8 Revision Flashcards">Unit 3.8 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38195/unit-39-revision-flashcards.html" title="Unit 3.9 Revision Flashcards">Unit 3.9 Revision Flashcards</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38196/flashcards-revision-unit-4.html" title="Flashcards - Revision (Unit 4)">Flashcards - Revision (Unit 4)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38198/unit-41-revision-flashcards.html" title="Unit 4.1 Revision Flashcards">Unit 4.1 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38203/unit-42-revision-flashcards.html" title="Unit 4.2 Revision Flashcards">Unit 4.2 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38217/unit-43-revision-flashcards.html" title="Unit 4.3 Revision Flashcards">Unit 4.3 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38218/unit-44-revision-flashcards.html" title="Unit 4.4 Revision Flashcards">Unit 4.4 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38219/unit-45a-product-revision-flashcards.html" title="Unit 4.5a Product Revision Flashcards">Unit 4.5a Product Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38220/unit-45b-price-revision-flashcards.html" title="Unit 4.5b Price Revision Flashcards">Unit 4.5b Price Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38221/unit-45c-promotion-revision-flashcards.html" title="Unit 4.5c Promotion Revision Flashcards">Unit 4.5c Promotion Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38222/unit-45d-promotion-revision-flashcards.html" title="Unit 4.5d Promotion Revision Flashcards">Unit 4.5d Promotion Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38223/unit-46-revision-flashcards-hl.html" title="Unit 4.6 Revision Flashcards (HL)">Unit 4.6 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38224/unit-47-revision-flashcards-hl.html" title="Unit 4.7 Revision Flashcards (HL)">Unit 4.7 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38225/unit-48-e-commerce-flashcards.html" title="Unit 4.8 E-commerce Flashcards">Unit 4.8 E-commerce Flashcards</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38232/flashcards-revision-unit-5.html" title="Flashcards - Revision (Unit 5)">Flashcards - Revision (Unit 5)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38233/unit-51-revision-flashcards.html" title="Unit 5.1 Revision Flashcards">Unit 5.1 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38234/unit-52-revision-flashcards.html" title="Unit 5.2 Revision Flashcards">Unit 5.2 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38235/unit-53-revision-flashcards-hl.html" title="Unit 5.3 Revision Flashcards (HL)">Unit 5.3 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38236/unit-54-revision-flashcards.html" title="Unit 5.4 Revision Flashcards">Unit 5.4 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38237/unit-55-revision-flashcards-hl.html" title="Unit 5.5 Revision Flashcards (HL)">Unit 5.5 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38238/unit-56-revision-flashcards-hl.html" title="Unit 5.6 Revision Flashcards (HL)">Unit 5.6 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38239/unit-57-revision-flashcards-hl.html" title="Unit 5.7 Revision Flashcards (HL)">Unit 5.7 Revision Flashcards (HL)</a></li></ul></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../33830/formulae-quiz.html" title="Formulae Quiz">Formulae Quiz</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Paper 1 Pre-release case study">Paper 1 Pre-release case study</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44969/n22-case-study-ele-plc.html" title="N22 Case Study (ELE PLC)">N22 Case Study (ELE PLC)</a></li><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="M22 (Peacewick Uni)">M22 (Peacewick Uni)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../44106/additional-exam-questions-paper-1.html" title="Additional exam questions (Paper 1)">Additional exam questions (Paper 1)</a></li></ul><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../32840/may-2020-p-s-trawlers.html" title="May 2020 (P&S Trawlers)">May 2020 (P&S Trawlers)</a></li><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="M23 Paper 1">M23 Paper 1</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../47825/paper-1-svt-study-guide-shirin-karimi.html" title="Paper 1 SVT Study Guide (Shirin Karimi)">Paper 1 SVT Study Guide (Shirin Karimi)</a></li></ul></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../26095/exam-study-tips-resources.html" title="Exam & Study tips (resources)">Exam & Study tips (resources)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../31342/revision-exams-top-tips.html" title="Revision & Exams - Top tips">Revision & Exams - Top tips</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../47460/top-tips-for-m23-exams.html" title="Top Tips for M23 Exams">Top Tips for M23 Exams</a></li></ul></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../43522/unit-1-intro-to-bm.html" title="Unit 1 - Intro to BM">Unit 1 - Intro to BM</a></li><ul class="level-1 "><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44034/11-what-is-a-business.html" title="1.1 What is a business?">1.1 What is a business?</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399695.html" title="The nature of business">The nature of business</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399694.html" title="Primary, secondary, tertiary, & quaternary sectors">Primary, secondary, tertiary, & quaternary sectors</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399693.html" title="Entrepreneurship">Entrepreneurship</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399692.html" title="Challenges & opportunities for starting a business">Challenges & opportunities for starting a business</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399691.html" title="1.1 True or False Quiz">1.1 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399690.html" title="1.1 Revision Flashcards">1.1 Revision Flashcards</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399689.html" title="1.1 Glossary of key terms">1.1 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399681.html" title="1.2 Types of business entities">1.2 Types of business entities</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399688.html" title="Public & private sectors">Public & private sectors</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399687.html" title="Types of for-profit organizations">Types of for-profit organizations</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399686.html" title="For-profit social enterprises">For-profit social enterprises</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399685.html" title="Non-profit social enterprises">Non-profit social enterprises</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399684.html" title="True or False quiz">True or False quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399683.html" title="1.2 Revision Flashcards">1.2 Revision Flashcards</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399682.html" title="1.2 Glossary of key terms">1.2 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44041/13-business-objectives.html" title="1.3 Business objectives">1.3 Business objectives</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399679.html" title="Vision and mission statements">Vision and mission statements</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399680.html" title="Common business objectives">Common business objectives</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399678.html" title="Strategic & tactical objectives">Strategic & tactical objectives</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399677.html" title="Corporate social responsibility">Corporate social responsibility</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399676.html" title="1.3 Revision Flashcards">1.3 Revision Flashcards</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399674.html" title="True or False quiz">True or False quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399675.html" title="1.3 Glossary of Key terms">1.3 Glossary of Key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44044/14-stakeholders.html" title="1.4 Stakeholders">1.4 Stakeholders</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399673.html" title="The interests of stakeholders">The interests of stakeholders</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399672.html" title="Conflict between stakeholders">Conflict between stakeholders</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399670.html" title="Unit 1.4 Revision Flashcards">Unit 1.4 Revision Flashcards</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399669.html" title="1.4 True or False">1.4 True or False</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399671.html" title="1.4 Glossary of Key terms">1.4 Glossary of Key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44045/15-growth-and-evolution.html" title="1.5 Growth and evolution">1.5 Growth and evolution</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44212/economies-diseconomies-of-scale-1.html" title="Economies & diseconomies of scale">Economies & diseconomies of scale</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44214/internal-and-external-growth-1.html" title="Internal and external growth">Internal and external growth</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44220/external-growth-methods-1.html" title="External growth methods">External growth methods</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44219/reasons-to-grow-or-stay-small-1.html" title="Reasons to grow or stay small">Reasons to grow or stay small</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45586/unit-15revision-flashcards-1.html" title="Unit 1.5 Revision Flashcards">Unit 1.5 Revision Flashcards</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45450/true-or-false-quiz-1.html" title="True or False quiz">True or False quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43673/15-glossary-of-key-terms-1.html" title="1.5 Glossary of key terms">1.5 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44046/16-multinational-companies.html" title="1.6 Multinational companies">1.6 Multinational companies</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44236/the-impact-of-mncs-on-host-countries-ao3-1.html" title="The impact of MNCs on host countries (AO3)">The impact of MNCs on host countries (AO3)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44240/video-documentaries-mncs-1.html" title="Video documentaries - MNCs">Video documentaries - MNCs</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45587/16-glossary-of-key-terms-1.html" title="1.6 Glossary of key terms">1.6 Glossary of key terms</a></li></ul></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../43530/unit-2-hrm.html" title="Unit 2 - HRM">Unit 2 - HRM</a></li><ul class="level-1 "><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44253/21-introduction-to-hrm.html" title="2.1 Introduction to HRM">2.1 Introduction to HRM</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44256/role-of-hrm.html" title="Role of HRM">Role of HRM</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44257/factors-that-influence-hr-planning.html" title="Factors that influence HR planning">Factors that influence HR planning</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44282/reasons-for-resistance-to-change.html" title="Reasons for resistance to change">Reasons for resistance to change</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44283/hr-strategies-for-reducing-the-impact-of-change-resistance-to-ch.html" title="HR strategies for reducing the impact of change & resistance to change">HR strategies for reducing the impact of change & resistance to change</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45458/21-true-or-false-quiz.html" title="2.1 True or False quiz">2.1 True or False quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43677/21-glossary-of-key-terms.html" title="2.1 Glossary of key terms">2.1 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43875/22-organizational-structure.html" title="2.2 Organizational structure">2.2 Organizational structure</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44296/terminology-for-understanding-organizational-structures-1.html" title="Terminology for understanding organizational structures">Terminology for understanding organizational structures</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44310/types-of-organization-charts-1.html" title="Types of organization charts">Types of organization charts</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44323/appropriateness-of-organizational-structures-and-external-factor-1.html" title="Appropriateness of organizational structures and external factors">Appropriateness of organizational structures and external factors</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44316/changes-in-organizational-structures-hl-1.html" title="Changes in organizational structures (HL)">Changes in organizational structures (HL)</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44338/23-leadership-and-management.html" title="2.3 Leadership and management">2.3 Leadership and management</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44343/scientific-intuitive-management-hl-1.html" title="Scientific & intuitive management (HL)">Scientific & intuitive management (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44339/management-and-leadership-1.html" title="Management and leadership">Management and leadership</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44340/leadership-styles-1.html" title="Leadership styles">Leadership styles</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45462/23-true-or-false-quiz.html" title="2.3 True or False Quiz">2.3 True or False Quiz</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43829/24-motivation-and-demotivation.html" title="2.4 Motivation and demotivation">2.4 Motivation and demotivation</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44349/motivation-theories-sl-hl-1.html" title="Motivation theories (SL & HL)">Motivation theories (SL & HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44353/motivation-theories-hl-1.html" title="Motivation theories (HL)">Motivation theories (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44354/labour-turnover-hl-1.html" title="Labour turnover (HL)">Labour turnover (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44361/types-of-appraisal-hl-1.html" title="Types of appraisal (HL)">Types of appraisal (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44383/methods-of-recruitment-hl-1.html" title="Methods of recruitment (HL)">Methods of recruitment (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44382/internal-external-recruitment-hl-1.html" title="Internal & external recruitment (HL)">Internal & external recruitment (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44363/types-of-financial-rewards-1.html" title="Types of financial rewards">Types of financial rewards</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44370/types-of-non-financial-rewards-1.html" title="Types of non-financial rewards">Types of non-financial rewards</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44371/types-of-training.html" title="Types of training">Types of training</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44390/25-organizational-corporate-culture-hl.html" title="2.5 Organizational (corporate) culture (HL)">2.5 Organizational (corporate) culture (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44392/organizational-culture-hl-1.html" title="Organizational culture (HL)">Organizational culture (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44393/types-of-organizational-culture-hl-1.html" title="Types of organizational culture (HL)">Types of organizational culture (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44394/cultural-clashes-hl-1.html" title="Cultural clashes (HL)">Cultural clashes (HL)</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44247/26-communication.html" title="2.6 Communication">2.6 Communication</a></li></ul><li class="ancestor parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right fa-rotate-90"></i><a class="" href="../43545/unit-3-finance.html" title="Unit 3 - Finance">Unit 3 - Finance</a></li><ul class="level-1 expanded"><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44435/31-introduction-to-finance.html" title="3.1 Introduction to finance">3.1 Introduction to finance</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44431/31-introduction-to-finance-role-of-finance.html" title="3.1 Introduction to finance - role of finance">3.1 Introduction to finance - role of finance</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45634/31-glossary-of-key-term.html" title="3.1 Glossary of key term">3.1 Glossary of key term</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44436/32-sources-of-finance.html" title="3.2 Sources of finance">3.2 Sources of finance</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44437/internal-sources-of-finance.html" title="Internal sources of finance">Internal sources of finance</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44450/external-sources-of-finance.html" title="External sources of finance">External sources of finance</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44479/appropriateness-of-sources-of-finance.html" title="Appropriateness of sources of finance">Appropriateness of sources of finance</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45483/32-true-or-false-quiz.html" title="3.2 True or False Quiz">3.2 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43688/32-glossary-of-key-terms.html" title="3.2 Glossary of key terms">3.2 Glossary of key terms</a></li></ul><li class="ancestor parent" style="padding-left: 14px"><i class="expander fa fa-caret-right fa-rotate-90"></i><a class="" href="../44486/33-costs-and-revenues.html" title="3.3 Costs and revenues">3.3 Costs and revenues</a></li><ul class="level-2 expanded"><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44487/types-of-costs-1.html" title="Types of costs">Types of costs</a></li><li class="current" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="total-revenue-revenue-streams-1.html" title="Total revenue & revenue streams">Total revenue & revenue streams</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45484/33-true-or-false-quiz-1.html" title="3.3 True or false quiz">3.3 True or false quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45657/33-glossary-of-key-terms-1.html" title="3.3 Glossary of key terms">3.3 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44492/34-final-accounts.html" title="3.4 Final accounts">3.4 Final accounts</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44527/the-purpose-of-accounts-to-different-stakeholders-1.html" title="The purpose of accounts to different stakeholders">The purpose of accounts to different stakeholders</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44577/profit-loss-account-2.html" title="Profit & loss account">Profit & loss account</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44579/balance-sheets-1.html" title="Balance sheets">Balance sheets</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44560/types-of-intangible-assets-1.html" title="Types of intangible assets">Types of intangible assets</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44585/depreciation-hl-1.html" title="Depreciation (HL)">Depreciation (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45919/34-true-or-false-quiz-1.html" title="3.4 True or False Quiz">3.4 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45658/34-glossary-of-key-terms-1.html" title="3.4 Glossary of key terms">3.4 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44593/35-profitability-liquidity-ratio-analysis.html" title="3.5 Profitability & liquidity ratio analysis">3.5 Profitability & liquidity ratio analysis</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44595/profitability-ratios.html" title="Profitability ratios">Profitability ratios</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44626/liquidity-ratios-1.html" title="Liquidity ratios">Liquidity ratios</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45486/35-true-or-false-quiz-1.html" title="3.5 True or False Quiz">3.5 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45661/35-glossary-of-key-terms-1.html" title="3.5 Glossary of key terms">3.5 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44627/36-efficiency-ratio-analysis-hl-only.html" title="3.6 Efficiency ratio analysis (HL only)">3.6 Efficiency ratio analysis (HL only)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44805/efficiency-ratios-hl-1.html" title="Efficiency ratios (HL)">Efficiency ratios (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44633/insolvency-versus-bankruptcy-1.html" title="Insolvency versus bankruptcy">Insolvency versus bankruptcy</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45488/36-true-or-false-quiz-1.html" title="3.6 True or False Quiz">3.6 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45662/36-glossary-of-key-terms-1.html" title="3.6 Glossary of key terms">3.6 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44493/37-cash-flow.html" title="3.7 Cash flow">3.7 Cash flow</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44502/the-difference-between-profit-cash-flow-1.html" title="The difference between profit & cash flow">The difference between profit & cash flow</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44506/working-capital-1.html" title="Working capital">Working capital</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44557/liquidity-position-1.html" title="Liquidity position">Liquidity position</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44558/cash-flow-forecasts-1.html" title="Cash flow forecasts">Cash flow forecasts</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44507/relationship-between-investment-profit-cash-flow-1.html" title="Relationship between investment, profit & cash flow">Relationship between investment, profit & cash flow</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44509/strategies-for-dealing-with-cash-flow-problems-1.html" title="Strategies for dealing with cash flow problems">Strategies for dealing with cash flow problems</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45493/37-true-or-false-1.html" title="3.7 True or False">3.7 True or False</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43687/37-glossary-of-key-terms-1.html" title="3.7 Glossary of key terms">3.7 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44515/38-investment-appraisal.html" title="3.8 Investment appraisal">3.8 Investment appraisal</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44516/payback-period-average-rate-of-return-1.html" title="Payback period & Average rate of return">Payback period & Average rate of return</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44519/net-present-value-npv-hl.html" title="Net present value (NPV) (HL)">Net present value (NPV) (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45494/38-true-or-false-quiz-1.html" title="3.8 True or False Quiz">3.8 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43693/38-glossary-of-key-terms-1.html" title="3.8 Glossary of key terms">3.8 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44564/39-budgets-hl.html" title="3.9 Budgets (HL)">3.9 Budgets (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44565/the-difference-between-cost-profit-centres-1.html" title="The difference between cost & profit centres">The difference between cost & profit centres</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44568/the-roles-of-cost-profit-centres-1.html" title="The roles of cost & profit centres">The roles of cost & profit centres</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44576/constructing-budgets-1.html" title="Constructing budgets">Constructing budgets</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44569/variances-1.html" title="Variances">Variances</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44571/the-importance-of-budgets-variances-1.html" title="The importance of budgets & variances">The importance of budgets & variances</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45495/39-true-or-false-quiz-1.html" title="3.9 True or False Quiz">3.9 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43694/39-glossary-of-key-terms.html" title="3.9 Glossary of key terms">3.9 Glossary of key terms</a></li></ul></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../43547/unit-4-marketing.html" title="Unit 4 - Marketing">Unit 4 - Marketing</a></li><ul class="level-1 "><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44637/41-introduction-to-marketing.html" title="4.1 Introduction to marketing">4.1 Introduction to marketing</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44638/market-orientation-vs-product-orientation-1.html" title="Market orientation vs Product orientation">Market orientation vs Product orientation</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44639/market-share-1.html" title="Market share">Market share</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44641/market-growth-1.html" title="Market growth">Market growth</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44642/importance-of-market-share-market-leadership-hl-1.html" title="Importance of market share & market leadership (HL)">Importance of market share & market leadership (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43695/41-glossary-of-key-terms-1.html" title="4.1 Glossary of key terms">4.1 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43823/42-marketing-planning.html" title="4.2 Marketing planning">4.2 Marketing planning</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44645/the-role-of-marketing-planning-1.html" title="The role of marketing planning">The role of marketing planning</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44654/segmentation-targeting-and-positioning-1.html" title="Segmentation, targeting, and positioning">Segmentation, targeting, and positioning</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44646/difference-between-niche-mass-market-1.html" title="Difference between niche & mass market">Difference between niche & mass market</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43821/the-importance-of-having-a-usp-1.html" title="The importance of having a USP">The importance of having a USP</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44655/how-organizations-differentiate-themselves-1.html" title="How organizations differentiate themselves">How organizations differentiate themselves</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43834/42-vocab-quiz-1.html" title="4.2 Vocab Quiz">4.2 Vocab Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45528/42-true-or-false-quiz-1.html" title="4.2 True or False Quiz">4.2 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43696/42-glossary-of-key-terms-1.html" title="4.2 Glossary of key terms">4.2 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44660/43-sales-forecasting-hl.html" title="4.3 Sales forecasting (HL)">4.3 Sales forecasting (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44669/benefits-limitations-of-sales-forecasting.html" title="Benefits & limitations of sales forecasting">Benefits & limitations of sales forecasting</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45530/43-true-or-false-quiz-1.html" title="4.3 True or False Quiz">4.3 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43711/43-glossary-of-key-terms-1.html" title="4.3 Glossary of key terms">4.3 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44679/44-market-research.html" title="4.4 Market research">4.4 Market research</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44680/why-how-organizations-carry-out-market-research.html" title="Why & how organizations carry out market research">Why & how organizations carry out market research</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44692/methodstechniques-of-primary-market-research-1.html" title="Methods/techniques of primary market research">Methods/techniques of primary market research</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44693/methodstechniques-of-secondary-market-research-1.html" title="Methods/techniques of secondary market research">Methods/techniques of secondary market research</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44694/qualitative-quantitative-research-1.html" title="Qualitative & quantitative research">Qualitative & quantitative research</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44695/methods-of-sampling-1.html" title="Methods of sampling">Methods of sampling</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45531/44-true-or-false-quiz-1.html" title="4.4 True or False Quiz">4.4 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43712/44-glossary-of-key-terms-1.html" title="4.4 Glossary of key terms">4.4 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44720/45-the-seven-ps-of-the-marketing-mix.html" title="4.5 The seven Ps of the marketing mix">4.5 The seven Ps of the marketing mix</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44740/451-product.html" title="4.5.1 Product">4.5.1 Product</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44741/the-product-life-cycle-1.html" title="The product life cycle">The product life cycle</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44745/extension-strategies-1.html" title="Extension strategies">Extension strategies</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44981/relationship-between-the-plc-investment-profit-cash-flow-1.html" title="Relationship between the PLC, investment, profit & cash flow">Relationship between the PLC, investment, profit & cash flow</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44748/aspects-of-branding.html" title="Aspects of branding">Aspects of branding</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44757/the-importance-of-branding-1.html" title="The importance of branding">The importance of branding</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../45766/starterplenary-activity-anagrams-quiz-brands-1.html" title="Starter/Plenary activity - Anagrams Quiz (Brands)">Starter/Plenary activity - Anagrams Quiz (Brands)</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../45957/starterplenary-activity-whats-in-a-brand-name-1.html" title="Starter/Plenary activity - What's in a (brand) name?">Starter/Plenary activity - What's in a (brand) name?</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../43713/45-glossary-of-key-terms-product-1.html" title="4.5 Glossary of key terms (Product)">4.5 Glossary of key terms (Product)</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../42547/452-price-1.html" title="4.5.2 Price">4.5.2 Price</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../43719/45-key-terms-price-1.html" title="4.5 Key Terms (Price)">4.5 Key Terms (Price)</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44782/453-promotion.html" title="4.5.3 Promotion">4.5.3 Promotion</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44783/above-the-line-promotion-1.html" title="Above the line promotion">Above the line promotion</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44795/below-the-line-promotion-1.html" title="Below the line promotion">Below the line promotion</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44797/through-the-line-promotion-1.html" title="Through the line promotion">Through the line promotion</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44801/social-media-marketing-1.html" title="Social media marketing">Social media marketing</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../43721/45-glossary-of-key-terms-1.html" title="4.5 Glossary of key terms">4.5 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44803/454-place-1.html" title="4.5.4 Place">4.5.4 Place</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44804/the-importance-of-different-distribution-channels-1.html" title="The importance of different distribution channels">The importance of different distribution channels</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../43722/45-glossary-of-key-terms-1.html" title="4.5 Glossary of key terms">4.5 Glossary of key terms</a></li></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44758/455-people-1.html" title="4.5.5 People">4.5.5 People</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44773/456-processes-1.html" title="4.5.6 Processes">4.5.6 Processes</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44774/457-physical-evidence-1.html" title="4.5.7 Physical evidence">4.5.7 Physical evidence</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44982/appropriate-marketing-mixes-1.html" title="Appropriate marketing mixes">Appropriate marketing mixes</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44697/46-international-marketing-hl.html" title="4.6 International marketing (HL)">4.6 International marketing (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44698/opportunities-threats-posed-by-entry-into-international-markets-1.html" title="Opportunities & threats posed by entry into international markets">Opportunities & threats posed by entry into international markets</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45537/46-true-or-false-quiz-1.html" title="4.6 True or False Quiz">4.6 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45736/46-glossary-of-key-terms-1.html" title="4.6 Glossary of key terms">4.6 Glossary of key terms</a></li></ul></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../43565/unit-5-operations-mgt.html" title="Unit 5 - Operations Mgt">Unit 5 - Operations Mgt</a></li><ul class="level-1 "><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44817/51-introduction-to-operations-management.html" title="5.1 Introduction to operations management">5.1 Introduction to operations management</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44818/the-role-of-operations-management-1.html" title="The role of operations management">The role of operations management</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44812/52-operations-methods.html" title="5.2 Operations methods">5.2 Operations methods</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44815/operations-methods-1.html" title="Operations methods">Operations methods</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44861/53-lean-production-quality-management-hl.html" title="5.3 Lean production & quality management (HL)">5.3 Lean production & quality management (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44864/features-of-lean-production.html" title="Features of lean production">Features of lean production</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44872/methods-of-lean-production.html" title="Methods of lean production">Methods of lean production</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44874/cradle-to-cradle-design-manufacturing.html" title="Cradle to cradle design & manufacturing">Cradle to cradle design & manufacturing</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44875/quality-control-quality-assurance.html" title="Quality control & quality assurance">Quality control & quality assurance</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44876/methods-of-managing-quality.html" title="Methods of managing quality">Methods of managing quality</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44877/the-impact-of-lean-production-tqm.html" title="The impact of lean production & TQM">The impact of lean production & TQM</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44878/national-international-quality-standards.html" title="National & international quality standards">National & international quality standards</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44840/55-break-even-analysis.html" title="5.5 Break-even analysis">5.5 Break-even analysis</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44843/contribution.html" title="Contribution">Contribution</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44848/aspects-of-break-even-analysis.html" title="Aspects of break-even analysis">Aspects of break-even analysis</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44851/changes-in-price-and-costs.html" title="Changes in price and costs">Changes in price and costs</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44852/limitations-of-break-even-analysis.html" title="Limitations of break-even analysis">Limitations of break-even analysis</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44890/56-production-planning-hl.html" title="5.6 Production planning (HL)">5.6 Production planning (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44902/the-local-global-supply-chain-process.html" title="The local & global supply chain process">The local & global supply chain process</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44922/the-difference-between-jit-jic.html" title="The difference between JIT & JIC">The difference between JIT & JIC</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44931/stock-control-charts.html" title="Stock control charts">Stock control charts</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44970/capacity-utilization-rate.html" title="Capacity utilization rate">Capacity utilization rate</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45125/defect-rate.html" title="Defect rate">Defect rate</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43832/productivity.html" title="Productivity">Productivity</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45187/cost-to-buy-cost-to-make.html" title="Cost to buy & Cost to make">Cost to buy & Cost to make</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../46353/sinterklaas-putting-ctb-vs-ctm-into-practice.html" title="Sinterklaas - Putting CTB vs CTM into practice">Sinterklaas - Putting CTB vs CTM into practice</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../45242/57-crisis-management-contingency-planning-hl.html" title="5.7 Crisis management & contingency planning (HL)">5.7 Crisis management & contingency planning (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45243/difference-between-crisis-management-contingency-planning.html" title="Difference between crisis management & contingency planning">Difference between crisis management & contingency planning</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45268/impact-of-contingency-planning.html" title="Impact of contingency planning">Impact of contingency planning</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45260/factors-that-affect-effective-crisis-management.html" title="Factors that affect effective crisis management">Factors that affect effective crisis management</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45554/57-true-or-false-quiz.html" title="5.7 True or False Quiz">5.7 True or False Quiz</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../45669/59-management-information-systems-hl.html" title="5.9 Management Information Systems (HL)">5.9 Management Information Systems (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../42633/data-analytics.html" title="Data analytics">Data analytics</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45861/database.html" title="Database">Database</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44966/cybersecurity-and-cybercrime.html" title="Cybersecurity and cybercrime">Cybersecurity and cybercrime</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45859/critical-infrastructures.html" title="Critical infrastructures">Critical infrastructures</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../46175/virtual-reality.html" title="Virtual reality">Virtual reality</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45862/the-internet-of-things.html" title="The internet of things">The internet of things</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45858/artificial-intelligence.html" title="Artificial intelligence">Artificial intelligence</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../42634/big-data.html" title="Big data">Big data</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43392/customer-loyalty-programmes.html" title="Customer loyalty programmes">Customer loyalty programmes</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43395/digital-taylorism.html" title="Digital Taylorism">Digital Taylorism</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45671/data-mining.html" title="Data mining">Data mining</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45856/benefits-risks-ethical-implications-of-mis.html" title="Benefits, risks, & ethical implications of MIS">Benefits, risks, & ethical implications of MIS</a></li></ul></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../42640/bmt-.html" title="BMT ">BMT </a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399696.html" title="BMT 1 - SWOT analysis">BMT 1 - SWOT analysis</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399697.html" title="BMT 2 - Ansoff matrix">BMT 2 - Ansoff matrix</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44027/bmt-3-steeple-analysis.html" title="BMT 3 - STEEPLE analysis">BMT 3 - STEEPLE analysis</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42577/bmt-4-boston-consulting-group-matrix.html" title="BMT 4 - Boston Consulting Group matrix">BMT 4 - Boston Consulting Group matrix</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42956/bmt-5-business-plans.html" title="BMT 5 - Business plans">BMT 5 - Business plans</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43606/bmt-6-decision-trees.html" title="BMT 6 - Decision trees">BMT 6 - Decision trees</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42362/bmt-7-descriptive-statistics.html" title="BMT 7 - Descriptive statistics">BMT 7 - Descriptive statistics</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42226/bmt-8-circular-business-models.html" title="BMT 8 - Circular Business Models">BMT 8 - Circular Business Models</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43605/bmt-9-gantt-chart-hl-only.html" title="BMT 9 - Gantt chart (HL only)">BMT 9 - Gantt chart (HL only)</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42214/bmt-10-porters-generic-strategies-hl-only.html" title="BMT 10 - Porter's generic strategies (HL only)">BMT 10 - Porter's generic strategies (HL only)</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42216/bmt-11-hofstedes-cultural-dimensions-hl-only.html" title="BMT 11 - Hofstede's cultural dimensions (HL only)">BMT 11 - Hofstede's cultural dimensions (HL only)</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399698.html" title="BMT 12 - Force field analysis (HL only)">BMT 12 - Force field analysis (HL only)</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42375/bmt-13-critical-path-analysis-hl-only.html" title="BMT 13 - Critical path analysis (HL only)">BMT 13 - Critical path analysis (HL only)</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42344/bmt-14-contribution-hl-only-.html" title="BMT 14 - Contribution (HL only) ">BMT 14 - Contribution (HL only) </a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42311/bmt-15-simple-linear-regression-hl-only.html" title="BMT 15 - Simple linear regression (HL only)">BMT 15 - Simple linear regression (HL only)</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../42758/concepts.html" title="Concepts">Concepts</a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43633/creativity.html" title="Creativity">Creativity</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43631/ethics.html" title="Ethics">Ethics</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43435/sustainability.html" title="Sustainability">Sustainability</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43668/change.html" title="Change">Change</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../42836/ia-.html" title="IA ">IA </a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44415/formulating-suitable-ia-questions.html" title="Formulating suitable IA questions">Formulating suitable IA questions</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../47685/supporting-documents-for-the-ia.html" title="Supporting documents for the IA">Supporting documents for the IA</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../47840/top-tips-for-the-ia-primary-research.html" title="Top tips for the IA – Primary research">Top tips for the IA – Primary research</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44047/50-sample-ia-research-questions-1.html" title="50+ Sample IA research questions">50+ Sample IA research questions</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../46719/recommended-format-for-the-ia.html" title="Recommended format for the IA">Recommended format for the IA</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../43603/exams.html" title="Exams">Exams</a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44091/paper-1.html" title="Paper 1">Paper 1</a></li><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Paper 2">Paper 2</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../46637/01-ikea.html" title="01 - IKEA">01 - IKEA</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../45839/quantitative-techniques.html" title="Quantitative techniques">Quantitative techniques</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../46025/abbreviations-quiz.html" title="Abbreviations Quiz">Abbreviations Quiz</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43740/command-terms.html" title="Command terms">Command terms</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../45612/glossary-of-key-terms.html" title="Glossary of key terms">Glossary of key terms</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../33955/the-core.html" title="The Core">The Core</a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../34902/cas-bm.html" title="CAS & BM">CAS & BM</a></li><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../21665/the-ee.html" title="The EE">The EE</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21934/the-bm-extended-essay.html" title="The BM Extended Essay">The BM Extended Essay</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../32857/ee-planning-form.html" title="EE Planning form">EE Planning form</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../37390/managing-the-ee-process.html" title="Managing the EE process">Managing the EE process</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../37496/top-10-tips-for-the-bm-ee.html" title="Top 10 tips for the BM EE">Top 10 tips for the BM EE</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21930/70-top-bm-ee-research-questions.html" title="70 top BM EE Research Questions">70 top BM EE Research Questions</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../22196/tools-techniques-theories-for-the-ee.html" title="Tools, techniques & theories for the EE">Tools, techniques & theories for the EE</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44048/the-triple-bottom-line.html" title="The triple bottom line">The triple bottom line</a></li></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21836/understanding-the-assessment-criteria.html" title="Understanding the assessment criteria">Understanding the assessment criteria</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../37960/reflections-and-engagement-in-the-ee.html" title="Reflections and engagement in the EE">Reflections and engagement in the EE</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../41874/the-mandatory-reflection-sessions.html" title="The mandatory reflection sessions">The mandatory reflection sessions</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../37659/top-10-tips-for-completing-the-rppf-1.html" title="Top 10 Tips for completing the RPPF">Top 10 Tips for completing the RPPF</a></li><li class="" style="padding-left: 28px"><i class="expander fa 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href="../22208/how-well-do-you-know-the-bm-course.html" title="How well do you know the BM course?">How well do you know the BM course?</a></li><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Distance Learning">Distance Learning</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../39730/financial-literacy-simulation-game.html" title="Financial literacy simulation game">Financial literacy simulation game</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../34551/starter-activities-business-management-trivia-quizzes.html" title="Starter Activities - Business Management Trivia Quizzes">Starter Activities - Business Management Trivia Quizzes</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" 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<div id="main-column" class="span9"> <article id="total-revenue-revenue-streams" style="margin-top: 16px;">
<h1 class="section-title">Total revenue & revenue streams</h1>
<ul class="breadcrumb"><li><a title="Home" href="../../../businessmanagement.html"><i class="fa fa-home"></i></a><span class="divider">/</span></li><li><span class="gray">Unit 3 - Finance</span><span class="divider">/</span></li><li><span class="gray">3.3 Costs and revenues</span><span class="divider">/</span></li><li><span class="active">Total revenue & revenue streams</span></li></ul>
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<div class="panel panel-has-footer" style="box-shadow: rgba(17, 0, 51, 0.3) 0px 10px 30px -15px; border-color: rgb(61, 30, 128);"><div class="panel-heading" style="background-color: rgb(61, 30, 128);"><span style="font-family:arial,helvetica,sans-serif;"><a class="expander pull-right" href="#"><span class="fa fa-plus"></span></a></span><div><p><strong><span style="font-family:arial,helvetica,sans-serif;">Total revenue and revenue streams, using examples (AO2)</span></strong></p></div></div><div class="panel-body"><div><p><span style="font-family:arial,helvetica,sans-serif;"><strong><img alt="" src="../../../ib/businessmanagement/images/revenue.png" style="width: 300px; height: 162px;"></strong></span></p><p><span style="font-family:arial,helvetica,sans-serif;">In 2020, following a year of national lockdowns and government rules for people to stay at home (due to the global COVID-19 pandemic), most businesses suffered huge financial losses. Without adequate revenue and revenue streams, many businesses collapsed. <strong>Revenue </strong>refers to the money coming into a business from the sale of goods and services. <span style="font-family:arial,helvetica,sans-serif;"><strong>Revenue streams</strong> refers to the various sources of revenue for a business.</span><span style="font-family:arial,helvetica,sans-serif;"> </span></span></p><p><span style="font-family:arial,helvetica,sans-serif;">However, the significant increase in the number of people staying at home and working from home (WFH) throughout 2020 and beyond meant that some businesses thrived. For example, in early 2021, Netflix announced that its total revenues for 2020 were a staggering $25 billion as many more customers signed up to its streaming services. This meant that Netflix earned revenues in excess of $2.85 million <em>per hour</em> throughout 2020!</span></p></div></div></div><div class="panel panel-purple panel-expandable"><div class="panel-heading"><a class="expander pull-right" href="#"><span class="fa fa-plus"></span></a><div><p><strong>Total revenue, using examples (AO2)</strong></p></div></div><div class="panel-body"><div><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Total revenue </strong>(TR) is the sum of income received by a business from its trading activities. It is calculated by multiplying the unit price (P) of a good or service by the quantity sold (Q), i.e. TR = P × Q. For example, if a campsite operator rents out 100 plots (or sites) at an average price of $45 per day, then its total revenue is $45 × 100 = $4,500 for the day.</span></p><p><span style="font-family:arial,helvetica,sans-serif;"><img alt="" height="192" src="../../../ib/businessmanagement/images/3.2-2.png" width="300"></span></p><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#696969;"><em>Camping site operators earn revenue from campers</em></span></span></p><p><span style="font-family:arial,helvetica,sans-serif;">Strictly speaking, the above calculation works as the organization sells a single product.</span><span style="font-family:arial,helvetica,sans-serif;"> In most cases, calculating total revenue is a little more complex because businesses sell a range of goods and/or services at different prices. In such cases, total revenue is calculated as the sum of the sales revenue for each of the firm's products. For example, Apple’s various revenue streams come from the sale of its different products, such as iPhones, iPads, AirPods, Apple TV, MacBook computers, and iTunes sales.</span></p><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-file-text-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Case Study - Lego</span></span></h5><p><span style="font-family:arial,helvetica,sans-serif;">Lego, the Danish toymaker founded in 1935, is the world's biggest toy company as measured by sales revenue. As the chart below shows, the company's sales revenue has grown almost sevenfold over the past two decades, reaching $7.2 billion in 2020.</span></p><p><span style="font-family:arial,helvetica,sans-serif;"><a href="https://www.statista.com/chart/24021/revenue-and-net-profit-of-the-lego-group/" title="Infographic: Brick by Brick: LEGO's Growing Toy Empire | Statista"><img alt="Infographic: Brick by Brick: LEGO's Growing Toy Empire | Statista" height="auto" src="../../../Infographic/images/normal/24021.jpeg" style="width: 100%; height: auto !important; max-width:960px;-ms-interpolation-mode: bicubic;" width="100%"></a> <span style="color:#696969;">Source: </span><a href="https://www.statista.com/chartoftheday/">Statista</a></span></p><p><span style="font-family:arial,helvetica,sans-serif;">Lego, which is Danish to "play well", employs more than 20,000 people and operates more than 700 retail stores worldwide as well as Legoland theme parks in Billund (Denmark), Günzburg (Germany), Windsor (UK), Castelnuovo del Garda (Italy), Florida (USA), California (USA), New York (USA), Nagoya (Japan), Dubai (UAE), and Johor (Malaysia). Despite the COVID-19 global pandemic, Lego achieved double-digit sales and profit growth in both 2020 and 2021.</span></p></div><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Average revenue</strong> (AR) is the amount a business receives from its customers per unit of a good or service sold. Average revenue is mathematically the same value as the price per unit. This is because:</span></p><ul><li><p><span style="font-family:arial,helvetica,sans-serif;">TR = P × Q</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">So P = TR ÷ Q</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">And since AR = TR ÷ Q</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">AR = P</span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;">where:</span></p><ul><li><p><span style="font-family:arial,helvetica,sans-serif;">TR = total revenue</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">P = price</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Q = quantity (output level), and</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">AR = average revenue</span></p></li></ul><div class="yellowBg"><h5 class="Default"><span style="color:#FF0000;"><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-times-circle fa-lg" style="color: rgb(103, 7, 124);"> </span> Common error!</span></span></h5><p class="Default"><span style="font-family:arial,helvetica,sans-serif;"><span lang="EN-GB">A common mistake made by students is to use the words ‘cost’ and ‘price’ synonymously.</span></span></p><p class="Default"><span style="font-family:arial,helvetica,sans-serif;"><span lang="EN-GB">“Cost” (or cost of production) is paid by the business, whereas “price” is paid by the customer to purchase the good or service.</span></span></p></div></div></div><div class="panel-footer"><div></div></div></div><div class="panel panel-purple panel-expandable"><div class="panel-heading"><a class="expander pull-right" href="#"><span class="fa fa-plus"></span></a><div><p><strong><span style="font-family:arial,helvetica,sans-serif;">Revenue streams, using examples (AO2)</span></strong></p></div></div><div class="panel-body"><div><p><span style="font-family:arial,helvetica,sans-serif;"><img alt="" height="211" src="../../../ib/businessmanagement/images/finance-and-accounts.jpg" width="324"></span></p><p><span style="font-family:arial,helvetica,sans-serif;">The term <strong>revenue streams</strong> refers to the various sources of revenue for a business.</span><span style="font-family:arial,helvetica,sans-serif;"> Sales revenue is the most common form of revenue stream for businesses. However, most businesses will have more than one revenue stream (sources of revenue). Examples of various revenue streams include:</span></p><div class="row-fluid"><div class="span6 col-left"><div><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">transactions fees charged to customers</span></p></li><li><p>m<span style="font-family:arial,helvetica,sans-serif;">embership fees</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">royalties</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">merchandise sales</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">sponsorship revenues</span></p></li></ul></div></div><div class="span6"><div><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">subscription charges imposed on customers</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">dividends from shareholdings in other companies</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">donations/gifts</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">interest earnings from cash savings in a bank account</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">grants and subsidies from the government</span></p></li></ul></div></div></div><hr class="hidden"><p><span style="font-family:arial,helvetica,sans-serif;">Examples of various revenue streams for selected businesses:</span></p><table border="1" cellpadding="0" cellspacing="0"><tbody><tr><td style="width:217px;"><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Burger King</strong></span></p></td><td style="width:189px;"><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Holiday Inn Hotel</strong></span></p></td><td style="width:236px;"><p><span style="font-family:arial,helvetica,sans-serif;"><strong>AMC Cinemas</strong></span></p></td></tr><tr><td style="width:217px;"><p><span style="font-family:arial,helvetica,sans-serif;">Fast food sales</span></p></td><td style="width:189px;"><p><span style="font-family:arial,helvetica,sans-serif;">Hotel room hire</span></p></td><td style="width:236px;"><p><span style="font-family:arial,helvetica,sans-serif;">Cinema ticket sales</span></p></td></tr><tr><td style="width:217px;"><p><span style="font-family:arial,helvetica,sans-serif;">Franchise licence fees</span></p></td><td style="width:189px;"><p><span style="font-family:arial,helvetica,sans-serif;">Room service</span></p></td><td style="width:236px;"><p><span style="font-family:arial,helvetica,sans-serif;">Popcorn, hot dogs, and candy</span></p></td></tr><tr><td style="width:217px;"><p><span style="font-family:arial,helvetica,sans-serif;">Royalties from franchisees</span></p></td><td style="width:189px;"><p><span style="font-family:arial,helvetica,sans-serif;">Restaurants</span></p></td><td style="width:236px;"><p><span style="font-family:arial,helvetica,sans-serif;">Drinks (beverages)</span></p></td></tr><tr><td style="width:217px;"><p><span style="font-family:arial,helvetica,sans-serif;">Rents paid by franchisees</span></p></td><td style="width:189px;"><p><span style="font-family:arial,helvetica,sans-serif;">Hotel gift shop</span></p></td><td style="width:236px;"><p><span style="font-family:arial,helvetica,sans-serif;">Merchandise</span></p></td></tr></tbody></table><div class="greenBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-file-text-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Case Study 1 - The world's most profitable businesses</span></span></h5><p><span style="font-family:arial,helvetica,sans-serif;">The world's largest businesses are able to earn hundreds of billions of dollars annually. The following summarises some of the findings from the Fortune 500 report (for 2019):</span></p><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">70 companies around the world earned over $1 million in profits in one hour or less.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Saudi Aramco is the world’s most profitable company, with profits of $304.04 million per day (or $1 million in just 4.7 minutes!) This is nearly double that of the second-placed Apple.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">High Tech companies are among the most profitable companies, with smartphones being key to Apple and Samsung in particular.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">With the exception of Samsung, the Asian companies on the list are state-owned Chinese banks.</span></p></li></ul><table><tbody><tr><td><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Rank</strong></span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Company</strong></span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Profit per day (USD)</strong></span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Time taken to earn $1m</strong></span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">1</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Saudi Aramco</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">$304.04 million</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">4.7 minutes</span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">2</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Apple</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">$163.1 million</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">8.8 minutes</span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">3</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Industrial & Commercial Bank of China</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">$123.29 million</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">11.7 minutes</span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">4</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Samsung Electronics</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">$109.3 million</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">13.2 minutes</span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">5</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">China Construction Bank</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">$105.48 million</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">13.7 minutes</span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">6</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">JPMorgan Chase & Co.</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">$88.97 million</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">16.2 minutes</span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">7</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Alphabet</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">$84.21 million</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">17.1 minutes</span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">8</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Agricultural Bank of China</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">$83.99 million</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">17.1 minutes</span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">9</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Bank of America Corp.</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">$77.12 million</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">18.7 minutes</span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">10</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Bank of China</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">$74.59 million</span></p></td><td style="text-align: center;"><p><span style="font-family:arial,helvetica,sans-serif;">19.3 minutes</span></p></td></tr></tbody></table><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#696969;">Source: adapted from </span><a href="https://fortune.com/global500/2019/search/?profits=desc and https://howmuch.net/articles/money-companies-make-per-day">Forbes</a></span></p></div><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-file-text-o fa-lg" style="color: rgb(103, 7, 124);"> </span> <span style="color:#FF0000;">Case Study 2 - Revenue per minute for the world's top companies</span></span></h5><p><span style="font-family:arial,helvetica,sans-serif;">Apart from profit, another way to measure success is in how much sales revenue a business generates on a per minute basis. Below is a selection of high tech companies, ranked by sales revenue per minute in 2021.</span></p><table><tbody><tr><td><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Company</strong></span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Sales revenue per minute</strong></span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">Amazon</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">$955,517</span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">Apple</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">$848,090</span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">Google (Alphabet)</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">$433,014</span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">Microsoft</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">$327,823</span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">Facebook (Meta)</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">$213,628</span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">Tesla</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">$81,766</span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">Netflix</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">$50,566</span></p></td></tr></tbody></table><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#696969;">Source: adapted from </span><a href="https://www.visualcapitalist.com/cp/apples-colossal-market-cap-3-trillion/">Visual Capitalist</a></span></p></div><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-file-text-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Case Study 3 - The Walt Disney Company</span></span></h5><p><span style="font-family:arial,helvetica,sans-serif;">The Walt Disney Company was established in 1923 by Roy Disney (1893 - 1971) and younger brother Walt Disney (1901 - 1966). The company operates six theme parks (which the company calls Disneyland Resorts) across the world:</span></p><div class="row-fluid"><div class="span6 col-left"><div><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">Disneyland Resort, California, USA</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Walt Disney World, Florida, USA</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Tokyo Disney Resort, Japan</span></p></li></ul></div></div><div class="span6"><div><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">Disneyland Paris, France</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Hong Kong Disneyland Resort, Hong Kong SAR</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Shanghai Disney Resort, China</span></p></li></ul></div></div></div><hr class="hidden"><p><span style="font-family:arial,helvetica,sans-serif;">Whilst many people might associate the Walt Disney Company with these theme parks (leisure parks), the company’s sales revenue also includes revenue streams from its many strategic business units such as Disney+ and other television cable channels including ABC Network, ESPN, and The Disney Channel.</span></p><p><span style="font-family:arial,helvetica,sans-serif;">The Walt Disney Company also owns film studios including Walt Disney Pictures, Walt Disney Animation Studios, Pixar (bought from Steve Jobs), Marvel Studios (and The Avengers franchise), Lucasfilm (and the Star Wars franchise), 20th Century Studios, Searchlight Pictures, and Blue Sky Studios.</span></p><p><span style="font-family:arial,helvetica,sans-serif;">As the world’s largest entertainment company, the Walt Disney Company had sales in excess of $65.388 billion in 2020 – that's more than $179 million per day or in excess of $7.46 million per hour(!)</span></p></div><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-file-text-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Case Study 4 - Big Tech, Big Revenue</span></span></h5><p><span style="font-family:arial,helvetica,sans-serif;">Many thanks to InThinking Business Management subscriber <strong>Nicoleta Ciora </strong>for suggesting this resource.</span></p><p><span style="font-family:arial,helvetica,sans-serif;">In 2021, the "Big Five" technology giants Apple, Amazon, Alphabet (Google), Meta (Facebook), and Microsoft, generated a combined $1.4 trillion in revenue. That's $1,400,000,000,000 or $3,835,616,438 per day, $159,817,352 per hour or a staggering $2,663,623 per second!</span></p><p><span style="font-family:arial,helvetica,sans-serif;">There are two main revenue sources for the Big Five:</span></p><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">Selling you a product (in the case of Apple, Microsoft, and Amazon)</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Selling to advertisers (in the case of Alphabet and Meta)*</span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;">* Nearly 98% of Meta’s revenue comes from Facebook advertising, and 81% of Google’s revenue comes from advertising on various Google products</span></p><p><span style="font-family:arial,helvetica,sans-serif;">Click this link from <a href="https://www.visualcapitalist.com/how-big-tech-makes-their-billions-2022/">Visual Capitalist</a> to see an infographic of the various revenue streams from the Big Five.</span></p></div><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-linode fa-lg" style="color: rgb(103, 7, 124);"> </span> ATL Activity (Thinking and Communication <span style="color:#FF0000;">skills</span>) - Revenue streams for the IBO</span></span></h5><p><span style="font-family:arial,helvetica,sans-serif;"><img alt="" src="../../../ib/businessmanagement/images/schools.jpg" style="width: 300px; height: 159px;"></span></p><p><span style="font-family:arial,helvetica,sans-serif;">With a classmate, discuss <strong>five </strong>revenue streams for the International Baccalaureate as an organization. Click on the icon after to see some of the possible answers.</span></p><section class="tib-hiddenbox"><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Possible revenue streams for the IB would include:</span></span></p><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Annual school (membership) fee - all IB World Schools are charged this yearly fee.</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Examination fees from candidates - use to pay for the administrative aspects of the IB internal and external assessments.</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">School authorization fees - charges paid by schools applying to be IB-accredited.</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">School evaluation (quality assurance) fees - charges paid by IB World Schools to be re-accredited (this happens on a 5-year cycle).</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Revenues from IB workshops, i.e. fees paid by schools for sending their teachers to be upskilled on official IB workshops.</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Revenues from IB Global Conferences, i.e. charges paid by commercial exhibitors at IB conferences (such as publishers of textbooks and IB-related resources).</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Royalties from the IB's partner publishers, such as Oxford University Press (OUP) and Hodder Education, for IB-endorsed publications.</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">The sale of past examination papers and mark schemes - these publications are copyrighted materials of the IB and only officially sold and distributed by its approved distributor called</span> <a href="http://www.follett.com">Follett</a>.</span></p></li></ul></section></div><div class="greenBg"><h5 class="Default"><span style="color:#FF0000;"><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-times-circle fa-lg" style="color: rgb(103, 7, 124);"> </span> Common error!</span></span></h5><p class="Default"><span style="font-family:arial,helvetica,sans-serif;"><span lang="EN-GB">Too often, students confuse <strong>revenue </strong>with <strong>profit</strong>. Revenue (or sales revenue) is the income a business earns from selling goods and services. From this, it must pay all its costs, such as fixed and variable costs, before a profit can be declared.</span></span></p><p class="Default"><span style="font-family:arial,helvetica,sans-serif;"><span lang="EN-GB">Profit exists if there is a positive difference between total revenue (TR) and total costs (TC), i.e. Profit = TR – TC. </span></span></p></div></div></div><div class="panel-footer"><div></div></div></div><div class="panel panel-purple panel-expandable"><div class="panel-heading"><a class="expander pull-right" href="#"><span class="fa fa-plus"></span></a><div><p><strong>Key terms</strong></p></div></div><div class="panel-body"><div><ul class="branded"><li><p><strong>Average revenue</strong> (AR) is the amount a business receives from its customers per unit of a good or service sold.</p></li><li><p><strong>Revenue </strong>refers to the money coming into a business from the sale of goods and services.</p></li><li><p><strong>Revenue streams</strong> refers to the various sources of revenue for a business.</p></li><li><p><strong>Total revenue </strong>(TR) is the sum of income received by a business from its trading activities.</p></li></ul></div></div><div class="panel-footer"><div></div></div></div><div class="panel panel-purple panel-expandable"><div class="panel-heading"><a class="expander pull-right" href="#"><span class="fa fa-plus"></span></a><div><p><strong>Exam Practice Questions</strong></p></div></div><div class="panel-body"><div><p> To test your understanding of this topic, have a go at the five exam practice questions below.</p><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-pencil-square-o fa-lg" style="color: rgb(103, 7, 124);"> </span>Exam Practice Question 1 - Pawlyn Drones</span></span></h5><p><span style="font-family:arial,helvetica,sans-serif;"><img alt="" src="../../../ib/businessmanagement/images/drones.png" style="width: 300px; height: 199px;"></span></p><p><span style="font-family:arial,helvetica,sans-serif;">Pawlyn Drones is a newly established manufacturer of drones for recreational use. The firm produced 180 drones last month, and sold these for an average price of $230. Pawlyn Drones had average variable costs of $190 per drone. Its fixed costs per month are $4,500.</span></p><table><tbody><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">(a)</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Define the term <em>fixed costs.</em></span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;"><em>[2 marks]</em></span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">(b)</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Calculate the average fixed cost (AFC) for Pawlyn Drones.</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;"><em>[2 marks]</em></span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">(c)</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Calculate the monthly profit or loss made by Pawlyn Drones</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;"><em>[2 marks]</em></span></p></td></tr></tbody></table><section class="tib-teacher-only" readonly="true" title="This box is not visible to students"><p class="header" readonly="true"><span style="font-family:arial,helvetica,sans-serif;"><img class="icon" src="../../../thinkib/icons/teacher-only.svg"> Teacher only box</span></p><div class="content" readonly="false"><p><span style="color:#FF0000;"><span style="font-family:arial,helvetica,sans-serif;"><strong>Answers</strong></span></span></p><p><strong><span style="font-family:arial,helvetica,sans-serif;">(a) Define the term <em>fixed costs.</em> <em>[2 marks]</em></span></strong></p><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Fixed costs are items of expenditure for a firm that do not change in relation to the level of output or production, such as payment of rent or management salaries.</span></span></p><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award<em> </em><em>[1 mark] </em>for a limited response that shows some understanding. Award <em>[2 marks] </em>for a clear and accurate definition, similar to the example above.</span></span></p><hr class="hidden"><p><strong><span style="font-family:arial,helvetica,sans-serif;">(b). Calculate the average fixed cost (AFC) for Pawlyn Drones. <em>[2 marks]</em></span></strong></p><ul><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">AFC = Total fixed costs / Output</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">AFC = $4,500 / 180 drones = <strong>$25</strong></span></span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award <em>[1 mark]</em> for the correct answer and <span style="color:#FF0000;"><em>[1 mark]</em></span> for showing apprpriate working out.</span></span></p><hr class="hidden"><p><strong><span style="font-family:arial,helvetica,sans-serif;">(c) Calculate the monthly profit or loss made by Pawlyn Drones. <em>[2 marks]</em></span></strong></p><ul><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Profit (or loss) = Total revenue minus Total costs</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Profit (or loss) = ($230 <span style="color:#FF0000;">×</span> 180) <span style="color:#FF0000;">– </span>[($190 <span style="color:#FF0000;">×</span> 180) + $4,500]</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">= $41,400 <span style="color:#FF0000;">– </span>($34,200 + $4,500)</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">= $41,400 <span style="color:#FF0000;">– </span>$38,700</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Profit = <strong>$2,700</strong></span></span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Alternatively, profit = Total contribution minus Total fixed costs</span></span></p><ul><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Total contribution = [($230 <span style="color:#FF0000;">– </span>$190) <span style="color:#FF0000;">×</span> 180] <span style="color:#FF0000;">– </span>$4,500</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Profit (or loss) = ($40 <span style="color:#FF0000;">×</span> 180) <span style="color:#FF0000;">– </span>$4,500</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Profit (or loss) = $7,200 <span style="color:#FF0000;">– </span>$4,500</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Profit =<strong> $2,700</strong></span></span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award <span style="color:#FF0000;"><em>[1 mark]</em></span><em> </em>for the correct answer and <span style="color:#FF0000;"><em>[1 mark]</em></span> for showing appropriate working out.</span></span></p></div></section></div><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-pencil-square-o fa-lg" style="color: rgb(61, 30, 128);"> </span> Exam Practice Question 2 - Tokyo Ceramics</span></span></h5><p><span style="font-family:arial,helvetica,sans-serif;"><img alt="" height="243" src="../../../ib/businessmanagement/images/cups---tokyo.jpg" width="324"></span></p><p><span style="font-family:arial,helvetica,sans-serif;"><em>Tokyo Ceramics </em>sells handcrafted cups for $10. The firm's average variable cost is $4 for each cup, and sells 1,200 of these cups per year. The firm has fixed costs of $3,000 per year.</span></p><table><tbody><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">(a)</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Calculate the annual sales revenue for <em>Tokyo Ceramics.</em></span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;"><em>[2 marks]</em></span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">(b)</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Calculate the profit margin (mark-up) on each cup sold by <em>Tokyo Ceramics.</em></span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;"><em>[2 marks]</em></span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">(c)</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Calculate <em>Tokyo Ceramics' </em>overall profit earned on the sale of these cups.</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;"><em>[2 marks]</em></span></p></td></tr></tbody></table><section class="tib-teacher-only" readonly="true" title="This box is not visible to students"><p class="header" readonly="true"><span style="font-family:arial,helvetica,sans-serif;"><img class="icon" src="../../../thinkib/icons/teacher-only.svg"> Teacher only box</span></p><div class="content" readonly="false"><p><span style="color:#FF0000;"><span style="font-family:arial,helvetica,sans-serif;"><strong>Answers</strong></span></span></p><p><strong><span style="font-family:arial,helvetica,sans-serif;">(a) Calculate the annual sales revenue for Tokyo Ceramics.<em> [2 marks]</em></span></strong></p><ul><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Total revenue = Price × Quantity sold</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">In annotation, TR = P × Q</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">TR = $10 × 1,200 = <strong>$12,000</strong></span></span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award <em>[1 mark]</em> for the correct answer, and <span style="color:#FF0000;"><em>[1 mark]</em></span> for showing appropriate working out.</span></span></p><span style="font-family:arial,helvetica,sans-serif;"></span><hr class="hidden"><strong>(<span style="font-family:arial,helvetica,sans-serif;">b) Calculate the profit margin (mark-up) on each cup sold by Tokyo Ceramics. <em>[2 marks]</em></span></strong><ul><li><p><span style="color:#FF0000;">Profit margin = Price minus Average cost (per cup)</span></p></li><li><p><span style="color:#FF0000;">In annotation, Profit margin = P – AC</span></p></li><li><p><span style="color:#FF0000;">Average cost = Average variable cost + Average fixed cost</span></p></li><li><p><span style="color:#FF0000;">In annotation, AC = AFC + AVC</span></p></li><li><p><span style="color:#FF0000;">AC = $4 + ($3,000 / 1,200) = $4 + $2.50</span></p></li><li><p><span style="color:#FF0000;">Hence, profit margin = $10 – ($4 + $2.50) = <strong>$3.50 per cup</strong></span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award <em>[1 mark]</em> for the correct answer, and <em>[1 mark]</em> for showing appropriate working out.</span></span></p><span style="font-family:arial,helvetica,sans-serif;"></span><hr class="hidden"><strong>(<span style="font-family:arial,helvetica,sans-serif;">c) Calculate <u>Tokyo Ceramics' </u>overall profit earned on the sale of these cups. <em>[2 marks]</em></span></strong><ul><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Profit = Total Revenue minus Total Costs</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Profit = ($10 × 1,200) – [($4 × 1,200) + $3,000 = $12,000 – ($4,800 + $3,000)</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Profit = $12,000 – $7,800 = <strong>$4,200</strong></span></span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award <span style="color:#FF0000;"><em>[1 mark]</em></span> for the correct answer, and <span style="color:#FF0000;"><em>[1 mark]</em></span> for showing appropriate working out.</span></span></p></div></section></div><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-pencil-square-o fa-lg" style="color: rgb(61, 30, 128);"> </span> Exam Practice Question 3 - YTF Toys Ltd.</span></span></h5><p><span style="font-family:arial,helvetica,sans-serif;">The table below refers to the costs and revenues of YTF Toys Ltd. when operating at 4,000 units of output per month:</span></p><table border="1" cellpadding="0" cellspacing="0"><tbody><tr><td style="width:168px;height:22px;"><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Item</strong></span></p></td><td style="width:144px;height:22px;"><p align="center"><span style="font-family:arial,helvetica,sans-serif;"><strong>Costs & Revenues ($)</strong></span></p></td></tr><tr><td style="width:168px;"><p><span style="font-family:arial,helvetica,sans-serif;">Price</span></p></td><td style="width:144px;"><p align="center"><span style="font-family:arial,helvetica,sans-serif;">$20</span></p></td></tr><tr><td style="width:168px;"><p><span style="font-family:arial,helvetica,sans-serif;">Raw materials per unit</span></p></td><td style="width:144px;"><p align="center"><span style="font-family:arial,helvetica,sans-serif;">$8</span></p></td></tr><tr><td style="width:168px;"><p><span style="font-family:arial,helvetica,sans-serif;">Rent</span></p></td><td style="width:144px;"><p align="center"><span style="font-family:arial,helvetica,sans-serif;">$7,000</span></p></td></tr><tr><td style="width:168px;"><p><span style="font-family:arial,helvetica,sans-serif;">Salaries</span></p></td><td style="width:144px;"><p align="center"><span style="font-family:arial,helvetica,sans-serif;">$8,000</span></p></td></tr></tbody></table><table><tbody><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">(a)</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Calculate the total cost for YTF Toys Ltd. of producing 4,000 units.</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;"><em>[2 marks]</em></span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">(b)</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Calculate the profit earned by YTF Toys Ltd. if it is able to sell all of its output this month.</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;"><em>[2 marks]</em></span></p></td></tr></tbody></table><section class="tib-teacher-only" readonly="true" title="This box is not visible to students"><p class="header" readonly="true"><span style="font-family:arial,helvetica,sans-serif;"><img class="icon" src="../../../thinkib/icons/teacher-only.svg"> Teacher only box</span></p><div class="content" readonly="false"><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><strong>Answers</strong></span></span></p><p><strong><span style="font-family:arial,helvetica,sans-serif;">(a</span><span style="font-family:arial,helvetica,sans-serif;">) Calculate the total cost for YTF Toys Ltd. of producing 4,000 units. <em>[2 marks]</em><span style="color:#FF0000;"></span></span></strong></p><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"></span></span></p><ul><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Total variable costs (TVC) = Raw materials per unit × units of output per month</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"> TVC = $8 × 4,000 = $32,000</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Total fixed cost (TFC) = Rent + Salaries</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">TFC = $7,000 + $8,000 = $15,000</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">TC = TVC + TFC = $32,000 + $15,000 = $47,000</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Therefore, TC for <em>YTF Toys Ltd.</em> of producing 4,000 units = <strong>$47,000</strong></span></span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award <em>[1 mark]</em> for the correct answer, and <em>[1 mark]</em> for showing appropriate working out.</span></span></p><hr class="hidden"><p><strong><span style="font-family:arial,helvetica,sans-serif;">(b) Calculate the profit earned by YTF Toys Ltd. if it sells all of its output this month. <em>[2 marks]</em></span></strong></p><ul><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Total revenue (TR) = Price × Quantity sold</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">TR = $20 × 4,000 = $80,000</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Profit = TR – TC = $80,000 – $47,000 = $33,000</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Hence, the profit earned by <em>YTF Toys Ltd.</em> if it sells 4,000 units this month = <strong>$33,000</strong></span></span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award <em>[1 mark]</em> for the correct answer, and <em>[1 mark]</em> for showing appropriate working out.</span></span></p><p><span style="font-family:arial,helvetica,sans-serif;"><em><span style="color:#FF0000;">Apply the own figure rule (error carried forward), where appropriate.</span></em></span></p></div></section></div><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-pencil-square-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Exam Practice Question 4 - Camiko Facemasks Company</span></span></h5><p><span style="font-family:arial,helvetica,sans-serif;"><img alt="" height="175" src="../../../ib/businessmanagement/images/face-masks.jpg" width="363"></span></p><p><span style="font-family:arial,helvetica,sans-serif;">Camiko Facemasks Company (CFMC) has fixed costs of $2,000 and sells 250 units of output per month. Each item costs $15 to make and sells for $25.</span></p><table border="0" cellpadding="0" cellspacing="3"><tbody><tr><td style="width:35px;"><p>(a)</p></td><td style="width:518px;"><p>Calculate the total costs per month for CFMC.</p></td><td style="width:82px;"><p align="right"><em>[2 marks]</em></p></td></tr><tr><td style="width:35px;"><p>(b)</p></td><td style="width:518px;"><p>Calculate the monthly profit for CFMC.</p></td><td style="width:82px;"><p align="right"><em>[2 marks]</em></p></td></tr><tr><td style="width:35px;"><p>(c)</p></td><td style="width:518px;"><p>Calculate the change in the average cost of production for CFMC at 150 units and 300 units of output, and comment on why the unit cost has changed.</p></td><td style="width:82px;"><p align="right"><br><em>[4 marks]</em></p></td></tr></tbody></table> <section class="tib-teacher-only" readonly="true" title="This box is not visible to students"><p class="header" readonly="true"><span style="font-family:arial,helvetica,sans-serif;"><img class="icon" src="../../../thinkib/icons/teacher-only.svg"> Teacher only box</span></p><div class="content" readonly="false"><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><strong>Answers</strong></span></span></p><p><strong><span style="font-family:arial,helvetica,sans-serif;">(a) Calculate the total costs per month for Camiko Facemasks Company. <em>[2 marks]</em></span></strong></p><ul><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">TC = TVC + TFC, where TVC = AVC × Q</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">TC = ($15 × 250) + $2,000 =<strong> $5,750</strong></span></span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award <em>[1 mark]</em> for the correct answer, and <em>[1 mark]</em> for showing appropriate working out.</span></span></p><hr class="hidden"><p><strong><span style="font-family:arial,helvetica,sans-serif;">(b) Calculate the monthly profit for Camiko Facemasks Company. <em> [2 marks]</em></span></strong></p><ul><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Total revenue (TR) = P × Q = $25 × 250 = $6,250</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Profit = TR – TC</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Hence, the monthly profit for <em>Camiko Company</em> = $6,250 – $5,750 = <strong>$500</strong></span></span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award <em>[1 mark]</em> for the correct answer, and <em>[1 mark]</em> for showing appropriate working out.</span></span></p><hr class="hidden"><p><strong><span style="font-family:arial,helvetica,sans-serif;">(c) Calculate the change in the average cost of production for <em>Camiko Facemasks Company</em> at 150 units and 300 units of output, and comment on why the unit cost has changed. <em>[4 marks]</em></span></strong></p><ul><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">AC = TC / Q</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">TC at 150 units = ($15 × 150) + $2,000 = $4,250</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">TC at 300 units = ($15 × 300) + $2,000 = $6,500</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">AC at <strong>150 units</strong> = $4,250 ÷ 150 units = <strong>$28.33</strong></span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">AC at <strong>300 units</strong> = $6,500 ÷ 300 units = <strong>$21.67</strong></span></span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">If <em>Camiko Facemasks </em>Company can sell 300 units, its fixed costs of $2,000 are spread over more units of output (300 rather than 150). Therefore, by doubling its operations, the company witnesses a fall in its unit costs of production from $28.33 to $21.67. This means that the company is able to benefit from economies of scale, i.e. falling average costs of production as a result of an increase in its output.</span></span></p><p><span style="font-family:arial,helvetica,sans-serif;"><em><span style="color:#FF0000;">Mark as a 2 + 2</span></em></span></p><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award <em>[1 mark]</em> for the correct answer, and <em>[1 mark]</em> for showing appropriate working out.</span></span></p><p><span style="font-family:arial,helvetica,sans-serif;"><em><span style="color:#FF0000;">Apply the own figure rule (error carried forward), where appropriate.</span></em></span></p><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award up to <em>[2 marks]</em> for the written commentary, which should make reference to declining average costs (unit costs of production) as the firm increases it level of production (output or sales).</span></span></p></div></section></div><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-pencil-square-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Exam Practice Question 5 - Connie's Candles</span></span></h5><p><span style="font-family:arial,helvetica,sans-serif;"><img alt="" src="../../../ib/businessmanagement/images/candles.jpg" style="width: 300px; height: 220px;"></span></p><p><span style="font-family:arial,helvetica,sans-serif;">Connie's Candles (CC) manufactures its own candles and sells these to retail outlets. The firm has fixed costs of $4,000 each month, which includes rent and management salaries. Its average variable costs are $3 per candle. The firm’s current level of demand is 2,500 candles per month. The average price of its candles is $6.</span></p><table><tbody><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">(a)</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Using a relevant example, explain what is meant by a variable cost.</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;"><em>[2 marks]</em></span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">(b)</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Calculate the firm’s average total costs (ATC) for the month.</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;"><em>[2 marks]</em></span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">(c)</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Calculate the monthly total costs of production for Connie's Candles.</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;"><em>[2 marks]</em></span></p></td></tr><tr><td><p><span style="font-family:arial,helvetica,sans-serif;">(d)</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;">Calculate the profit if demand for the firm's candles increases to 3,000 units per month.</span></p></td><td><p><span style="font-family:arial,helvetica,sans-serif;"><em>[2 marks]</em></span></p></td></tr></tbody></table><section class="tib-teacher-only" readonly="true" title="This box is not visible to students"><p class="header" readonly="true"><span style="font-family:arial,helvetica,sans-serif;"><img class="icon" src="../../../thinkib/icons/teacher-only.svg"> Teacher only box</span></p><div class="content" readonly="false"><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><strong>Answers</strong></span></span></p><p><strong><span style="font-family:arial,helvetica,sans-serif;">(a) Using a relevant example, explain what is meant by a variable cost. <em>[2 marks]</em></span></strong></p><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Variable costs are those that change directly with a firm’s level of output. For example, <em>Connie's</em> <em>Candles</em> will need to pay for the purchase of materials to make its candles. So, the more candles the firm produces or sells, the higher the variable costs of production will be.</span></span></p><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award <em>[1 mark]</em> for a vague explanation that shows some understanding of the term fixed costs. Award <em>[2 marks]</em> for an accurate explanation of fixed costs, similar to the example above.</span></span></p><hr class="hidden"><p><strong><span style="font-family:arial,helvetica,sans-serif;">(b) Calculate the firm’s average total costs (ATC) for the month. <em>[2 marks]</em></span></strong></p><ul><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">ATC = TC/Q where TC = TFC + TVC</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">ATC = ($3 × 2,500) + $4,000] ÷ 2,500 = $4.60</span></span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award <em>[1 mark]</em> for the correct answer and <em>[1 mark]</em> for showing appropriate working out.</span></span></p><hr class="hidden"><p><strong><span style="font-family:arial,helvetica,sans-serif;">(c) Calculate the monthly total costs of production for </span>Connie's <span style="font-family:arial,helvetica,sans-serif;">Candles. <em>[2 marks]</em></span></strong></p><ul><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">TC = TFC + TVC = $4,000 + ($3 × 2,500) = $11,500<br>or</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">TC = ATC × Q = $4.6 × 2,500 = <strong>$11,500</strong></span></span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award <em>[1 mark]</em> for the correct answer and <em>[1 mark]</em> for showing appropriate working out.</span></span></p><hr class="hidden"><p><strong><span style="font-family:arial,helvetica,sans-serif;">(d) Calculate the profit if demand for the firm's candles increases to 3,000 units per month. <em>[2 marks]</em></span></strong></p><ul><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Profit = Contribution – Total fixed costs</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Profit = [($6 – $3) × 3,000] – $4,000 = <strong>$5,000</strong></span></span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Award <em>[1 mark]</em> for the correct answer and <em>[1 mark]</em> for showing appropriate working out.</span></span></p></div></section></div></div></div><div class="panel-footer"><div></div></div></div><p><span style="font-family:arial,helvetica,sans-serif;">Return to the <a href="../44486/33-costs-and-revenues.html" title="New syllabus 2022 » Unit 3 - Finance and Accounts (WIP) » 3.3 Costs and revenues">Unit 3.3 - Costs and revenues</a> homepage</span></p><p><span style="font-family:arial,helvetica,sans-serif;">Return to the <a href="../43545/unit-3-finance-and-accounts-wip.html" title="New syllabus 2022 » Unit 3 - Finance and Accounts (WIP)">Unit 3 - Finance & accounts</a> homepage</span></p><p><span style="font-family:arial,helvetica,sans-serif;"><a href="../../../businessmanagement.html"><img alt="" src="../../../ib/businessmanagement/logo-blue-black-1.png" style="width: 170px; height: 54px;"></a> </span></p><script>document.querySelectorAll('.tib-teacher-only').forEach(e => e.remove());</script>
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