Bece Model Questions Vol1 2023 Business Studies Question 1

Practice practical question 1 from the 2023 Bece Model Questions Vol1 Business Studies examination. This question covers Introduction to Business .

Bece Model Questions Vol1 2023 Business Studies Practical
Topic: Introduction to Business
Question 1 BECE_MODEL_QUESTIONS_VOL1 • 2023 • BUSINESS_STUDIES • practical

A student visited the local bakery ‘Sweet Treats’ and recorded the information shown below. - Business name: Sweet Treats - Primary activity: baking and selling cupcakes, pastries and drinks - Capital invested by the owner: ₦200,000 - Ownership: single individual named Mrs Adaeze Okafor - Number of employees: 4 (including the owner) - Fixed monthly costs: • Rent: ₦30,000 • Salaries (including owner’s draw): ₦45,000 • Utilities (electricity & water): ₦5,000 - Variable cost per cupcake (ingredients, packaging, labour): ₦1,300 - Selling price per cupcake: ₦2,500 - Other items sold (pastries, drinks) generate an average profit of ₦800 per unit sold. Using this information answer the questions that follow.

Question Parts

( a )
State the type of business (goods or services) and give two pieces of evidence from the data to justify your answer.
( b )
Identify the form of ownership of Sweet Treats and explain one advantage and one disadvantage of this form for the bakery.
( c )
Using the fixed monthly costs and the profit per cupcake, calculate the number of cupcakes that must be sold each month to break even. Then state the break‑even sales revenue in naira.
( d )
Suggest two realistic ways Sweet Treats could increase its monthly profit without raising its fixed costs. Briefly explain why each would be effective.

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About This Question

This is Bece Model Questions Vol1 2023 Business Studies Question 1. It is one of the practical questions from the 2023 Bece Model Questions Vol1 Business Studies examination.

The question covers Introduction to Business .

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