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.
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.
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.
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 45 Minutes
50 Marks
Calculator is allowed
IB BUSINESS MANAGEMENT SL, Paper 2, November, 2020, TZ0, Solved Past Paper
Master the 2020 IB November for Paper 2 Business Management SL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
MiniVS (MV) is a company that imports light bulbs and sells them to other businesses in the UK. In 2020, MV faced cash-flow issues and had to resort to debt factoring. Now, MV has resolved its cash-flow problems and uses a cost-plus pricing strategy, marking up the price of light bulbs by 100%. The forecasted opening cash balance for January 2021 is £20,000. The following table provides the forecasted data per month for MV for the first six months of 2021:
Months 1-3 | Months 4-6 | |
|---|---|---|
Cash sales per month | 75000 | 70000 |
Warehouse overheads | 5000 | 5000 |
Office salaries | 30000 | 30000 |
Marketing costs | 1000 | 1000 |
Question 1 [a] [Explanation]
This question asks you to state two features of debt factoring, which is a financial arrangement that MV used to resolve its cash-flow issues in 2020.
Question 1 [b] [Explanation]
This question asks you to construct a fully labelled cash flow forecast for MV for the first six months of 2021 using the information provided in Table 1.
Question 1 [c] [Explanation]
This question asks you to explain the potential impact on MV’s gross profit margin if the prices charged by its suppliers increase in the second half of 2021.
Question 2 [Explained]
KPJ operates a cinema in a small town and employs a price discrimination strategy for selling cinema tickets. The following table provides selected financial information for KPJ for the year ending 31 December 2019.
$ | |
|---|---|
Cost of goods sold | 122000 |
Long-term liabilities (debt) | 2800 |
Interest and tax | 9500 |
Gross profit | X |
Total current assets | 8330 |
Sales revenue | 175000 |
Net fixed assets | 63000 |
Expenses | 81000 |
Total current liabilities | 6800 |
Share capital | 60000 |
Accumulated retained profit | 1730 |
Question 2 [a] [Explanation]
Define the term price discrimination.