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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 45 Minutes

50 Marks

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IB BUSINESS MANAGEMENT SL, Paper 2, May, 2017, TZ0, Solved Past Paper

Master the 2017 IB May for Paper 2 Business Management SL with examiner tailored solutions and comments for TZ0

Question 1 [Explained]

Sotatsu Electronics (SE) manufactures electronic products and is famous for its innovative televisions. In late 2015, SE introduced a new high-definition television with twice the quality of the best-selling television of its chief competitor. Determining that it would be two years before its competitors could have a similar product, SE adopted a price skimming strategy.

	2015	2016
Cash	300	250
Cost of goods sold	2100	2300
Creditors	180	230
Expenses	1200	1300
Fixed assets	1075	1275
Gross profit	X	2800
Net profit before interest and tax	1000	Y
Sales revenue	4300	5100
Total current assets	650	700
Total current liabilities	275	300

Question 1 [a] [Explanation]

This question asks you to define the term price skimming.

Question 1 [b] [i] [Explanation]

This question asks you to calculate the values of X and Y in Table 1. No working is required.