Could not load assets. Please refresh the page.

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, 2016, TZ0, Solved Past Paper

Master the 2016 IB November for Paper 2 Business Management SL with examiner tailored solutions and comments for TZ0

Question 1 [Explained]

Valley Gardens (VG) is a large garden retailer that sells flowers, plants, trees, and other garden supplies. In 2016, VG introduced a loss leader pricing strategy for several varieties of trees in an attempt to gain market share and increase sales. This strategy had an impact on both sales and profitability.

	2015	2016
Cost of goods sold	2800	V
Expenses	1200	1300
Gross profit	W	1600
Net profit before interest and tax	X	Y
Sales revenue	4300	5100

Question 1 [a] [Explanation]

This question asks you to define the term 'loss leader pricing strategy'.

Question 1 [b] [Explanation]

This question asks you to use the information from the table to calculate the missing figures $V, W, X$ and $Y$ and the gross profit margin for 2015 and 2016.

Question 1 [b] [i] [Explanation]

Calculate the missing figures $V, W, X$ and $Y$ (no working required).

Question 1 [b] [ii] [Explanation]

Calculate the gross profit margin for 2015 and 2016 (no working required).