Pearson Edexcel Level 3
GCE
Business
Advanced Subsidiary
PAPER 2: Managing Business
JUNE 2023
Instructions
• Use black ink or ball-point pen.
• Fill in the boxes at the top of this page with
centre number and candidate number.
• Answer
•provided – there may be more space
all
your name,
Answer the questions in the spaces
questions.
than you need.
Information
• The total mark for this paper is 80.
• The marks for each question are shown
– use this as a guide as to how much time to spend on each
•question. You may use a calculator.
in brackets
Advice
• Read each question carefully before you start to answer it.
• Try to answer every
• Check your answers if you have time at the end.
question.
Turn over
1
, Answer ALL questions.
SECTION A
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Read the following Extracts (A and B) before answering
Question 1.
Write your answers in the spaces provided.
Extrac
tA
Jack Wills Ltd to reconsider its future
In 2019, fashion retailer, Jack Wills, appointed advisors to look at options
for the future of the business. This included the possible sale of the
business. Since 2017, the retailer has suffered from falling sales and has
used up a £20m cash injection from owners, Bluegem
Capital. 5
Rumours suggest that Jack Wills is suffering from poor working capital. It
has already asked its landlords to reduce store rental costs in an effort to
reduce its fixed costs. Jack Wills’ suppliers have also been affected by the
problems at the business, with each store reducing the amount of buffer
stock held. Suppliers have been asked to extend the trade
credit period. Jack Wills has negotiated an increased overdraft facility with its bank, HSBC.
Extract B
Selected information from Jack Wills Ltd’s Statement of Comprehensive Income
(2018)
£000s
Revenue 129 297
Cost of sales (63 380)
Other operating (80 149)
expenses
Operating profit (14 232)
Profit for the year (net (14 838)
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profit)
2
, 1 (a) What is meant by fixed
costs? (2)
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3
Turn
over
, (c) Using the information in Extract B, calculate the difference
between gross profit and operating profit for Jack Wills Ltd in
2018. You are advised to show your working.
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