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These are explanations and solutions for IB past papers, not the official version. For official papers, you can go to IB Follet or access them through your school.

01 Hours 15 Minutes

30 Marks

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IB BUSINESS MANAGEMENT SL, Paper 2, May, 2021, TZ0, Solved Past Paper

Master the 2021 IB May for Paper 2 Business Management SL with examiner tailored solutions and comments for TZ0

Question 1 [Explained]

Hafs is a new cooperative planning to manufacture wastepaper bins for the household market. The cooperative has forecasted its sales for 2021 to be 25,000 units. The break-even chart for this forecast is shown in Figure 1.

Question 1 [a] [Explanation]

This question asks you to state two features of a cooperative. A cooperative is a type of business organization that is owned and operated by its members for their mutual benefit.

Question 1 [b] [i] [Explanation]

This question asks you to explain what the y-axis shows in the break-even chart provided in Figure 1.

Question 1 [b] [ii] [Explanation]

This question asks you to calculate the forecasted profit if sales are 25,000 units in 2021. You need to show all your working.

Question 1 [b] [iii] [Explanation]

This question asks you to calculate the total contribution in 2021 if Hafs only sells 20,000 units. You need to show all your working.

Question 1 [c] [Explanation]

This question asks you to explain whether an increase in total fixed costs has an impact on unit contribution.

Question 2 [Explained]

The Pie Store (TPS) is a business that bakes and sells pies through its three retail stores. The company has incorporated the mathematical symbol pi $(π)$ into its branding. In 2020, each of the three stores made a profit. The financial data for each store, including sales, cost of goods sold, gross profit, expenses, and net profit before interest and tax, is presented in a table. Additionally, TPS's balance sheet for 2020 shows $200,000 in assets and $120,000 in liabilities, with $50,000 of the liabilities being long-term debt.

	Store 1	Store 2	Store 3
Sales	180000	223000	170000
Cost of goods sold	90000	120000	85000
Gross profit	90000	103000	85000
Expenses	66000	76000	67000
Net profit before interest and tax	X	Y	Z

Question 2 [a] [Explanation]

This question asks you to describe one step in the development of a brand.

Question 2 [b] [i] [Explanation]

This question asks you to determine which store made the highest net profit before interest and tax. No working is required.