0452.6.1.02 — Profit margin: past paper questions
Real questions on 0452.6.1.02 — profit margin
The newest 20 of 27 written questions. Open one to see it on the real paper.
- 0452/22 · February/March 2025 · Q4b[4]
Explain how Raj’s lower profit margin may be linked to his trade receivables taking longer to pay. Raj is considering paying more capital into the business to reduce the bank overdraft. REQUIRED
See it on the paper → - 0452/22 · February/March 2025 · Q4c[5]
Advise Raj whether or not he should pay more capital into the business. Justify your answer by providing points for and against.
See it on the paper → - 0452/23 · May/June 2024 · Q2d[5]
Advise Toyah whether or not she should buy Idir’s inventory. Justify your answer by providing two points for and two points against buying this inventory.
See it on the paper → - 0452/23 · May/June 2024 · Q5a[11]
Complete the following table. ratio working answer Gross margin (to 2 decimal places) Profit margin (to 2 decimal places) Rate of inventory turnover (times) (to 2 decimal places) Trade receivables turnover days (round up to next whole day) Liquid (acid test) ratio (to 2 decimal places) Ajay has been trading for 3 years...
See it on the paper → - 0452/23 · May/June 2024 · Q5b(i)[1]
Suggest one reason why Ajay’s gross margin has increased.
See it on the paper → - 0452/23 · May/June 2024 · Q5c[5]
Advise Ajay whether or not he should reduce his selling price. Justify your answer by providing advantages and disadvantages of reducing his selling price. Although Ajay’s gross margin has increased, his profit margin has fallen for each of the last two years. Sales revenue is Ajay’s only income. REQUIRED
See it on the paper → - 0452/23 · May/June 2024 · Q5d[2]
State two reasons why Ajay should be concerned about his falling profit margin.
See it on the paper → - 0452/21 · October/November 2023 · Q2c[5]
Advise Hilary whether she should sell only production from her own factory and increase the amount produced. Justify your answer by providing arguments for and against selling only production from her own factory and increasing the amount produced.
See it on the paper → - 0452/22 · October/November 2023 · Q2d[5]
Advise Sara whether she should start supplying the drama school with costumes. Justify your answer by providing advantages and disadvantages of supplying the costumes.
See it on the paper → - 0452/22 · October/November 2023 · Q3d[5]
Advise Lionel whether he should offer the 10% trade discount or the 3% cash discount. Justify your answer.
See it on the paper → - 0452/22 · October/November 2023 · Q5c[5]
Advise Nala whether she should obtain a bank loan to expand the business. Justify your answer by providing two points for and two points against obtaining the bank loan to expand the business.
See it on the paper → - 0452/22 · October/November 2023 · Q5d[1]
State why Nala’s bank manager would be interested in her financial statements if she requests the loan.
See it on the paper → - 0452/22 · May/June 2023 · Q3c[5]
Advise the treasurer whether she should fund the purchase of the computer equipment by increasing the subscription amount. Justify your answer by making points for and against increasing the subscription amount. Calculations are not required.
See it on the paper → - 0452/23 · May/June 2023 · Q3c[5]
Advise the treasurer whether she should fund the purchase of the computer equipment by increasing the subscription amount. Justify your answer by making points for and against increasing the subscription amount. Calculations are not required.
See it on the paper → - 0452/21 · October/November 2022 · Q4c(i)[2]
Calculate to two decimal places the profit margin for the year.
See it on the paper → - 0452/21 · October/November 2022 · Q4c(ii)[2]
Suggest two ways in which the profit margin could be improved.
See it on the paper → - 0452/22 · October/November 2022 · Q1c[5]
Advise BC on which option he should use. Justify your answer.
See it on the paper → - 0452/23 · October/November 2022 · Q4b[4]
Calculate to two decimal places the return on capital employed for the year ended 31 August 2022. (Use closing capital employed).
See it on the paper → - 0452/23 · October/November 2021 · Q4b[5]
Advise Karishma whether she should change to the new electricity supplier. Justify your answer with two advantages and two disadvantages of changing supplier. On 1 October 2020 Karishma decided to rent out part of her premises to Noor at an annual rent of $1965. During the financial year ended 30 September 2021 Noor ma...
See it on the paper → - 0452/21 · May/June 2021 · Q5a[4]
Calculate the following ratios.
See it on the paper →
What examiners said
An explanation was required of how a low profit margin may be linked to an increased trade receivables turnover. This proved to be very challenging for candidates. Many answers concentrated on liquidity and many responses incorrectly indicated that the amount due from trade receivables would not be included in the figure of sales for the year. A few answers correctly suggested that the increase in...
— Examiner report, February/March 2025, 0452/22 Q4(b) (Cambridge)
Advice had to be given to a trader on whether to introduce additional capital into the business in order to reduce the bank overdraft. Many candidates were able to provide acceptable answers. Many responses appreciated that no bank interest would be payable and the relationship with the bank may improve. Most also understood that the trader would have more funds at risk. Very few answers mentioned...
— Examiner report, February/March 2025, 0452/22 Q4(c) (Cambridge)
The question posed a scenario of whether to increase subscriptions for the club as a possible way to purchase a computer to aid record keeping for members. Many answers approached this question from a business perspective and talked about customers and increasing sales. Often a simplistic approach was ‘yes’ to increasing subscriptions and any excess funds could be used to increase services or faci...
— Examiner report, May/June 2023, 0452/22 Q3(c) (Cambridge)
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