AQA Business Studies AS
Numerical Revision Sheet
Unit 2 – Managing a Business
1)
Variance = budget -
actual
Favourable variance
= Actual revenue greater than
budget
Actual costs less
than budget
Adverse
variance = Actual revenue less than budget
Actual costs
greater than budget
Budget (000s)
|
Actual (000s)
|
Variance (000s)
|
F or A
|
|
Sales income
|
400
|
441
|
||
Capital costs
|
56
|
88
|
||
Raw materials
|
100
|
106
|
||
Marketing expenditure
|
42
|
55
|
||
Wages
|
84
|
74
|
||
Other costs
|
40
|
40
|
||
Total expenditure
|
||||
Profit
|
2)
Measuring
profitability
Net profit margin =
Net profit
------------- x 100
Sales
Return on capital = Net profit
------------- x 100
Capital
invested
Calculate the net
profit margins and return on capital employed for the following 3 businesses to
1 decimal place.
Xyz ltd
|
Abc ltd
|
Rutc ltd
|
|
Sales revenue
|
£140000
|
£90000
|
£230000
|
Net Profit
|
£17000
|
£18000
|
£35000
|
Capital invested
|
£340000
|
£270000
|
£280000
|
3)
Measuring the
effectiveness of the workforce
Labour productivity = Output per period
------------------------
Number
of employees per period
Labour turnover = Number of employees leaving
---------------------------------- x 100
Average no. of
employees
Annual rate of absenteeism = Total number of days lost due to absence
---------------------------------------- x 100
Total
number of days worked
Annual rate of lost days due = Number of days lost due to H&S issues
to health and safety (H&S) ---------------------------------- x 100
Total
number of days worked
2005
|
2006
|
2007
|
|
Total output (units)
|
12600
|
13500
|
14960
|
Average no. of employees
|
200
|
180
|
170
|
No. of employees leaving
|
15
|
20
|
25
|
No. of working days for each employee per year
|
250
|
250
|
250
|
Total no. of days lost due to absence
|
1200
|
1440
|
1700
|
Total no. of days lost to health and
safety reasons
|
30
|
20
|
12
|
Calculate using the above table the productivity rate,
labour turnover, absenteeism levels and the health and safety rate for each of
the 3 years to 2 decimal places.
4) Capacity utilisation = Actual output
-------------------- x 100
Maximum
possible output
Unit cost = Total
cost
---------------
Units
of output
Maximum capacity output
|
Actual units of production
|
Capacity utilisation %
|
Total Costs (£)
|
Unit Costs (£)
|
|
Factory A
|
6000
|
4500
|
270000
|
||
Factory B
|
6000
|
2700
|
216000
|
||
Factory C
|
8000
|
4800
|
336000
|
||
Total
|
20000
|
12000
|
822000
|
Complete this table.
5) Price elasticity of demand – measures
the price sensitivity of a product. The responsiveness of a change in the
quantity demanded of a product to a change in price.
Price inelastic products will be less than 1
Original sales level
|
New Sales level
|
Original price (£)
|
New Price (£)
|
|
Product A
|
10000
|
£1.00
|
£1.05
|
|
Product B
|
15000
|
£15.00
|
£16.50
|
|
Product C
|
18000
|
£3.00
|
£2.50
|
PED A: 0.5
PED B: 1.5
PED C: 0.75
Using the price elasticity figures above calculate the
new sales level
