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CAIE A-Level Business AS 2.2.4 Motivation Methods Questions

Practise comparing payment methods and non-financial motivators such as job enrichment and empowerment.

Syllabus
2026–2028
Course
Business 9609
Level
AS

Exam points

  • identify financial and non-financial motivators
  • explain payment methods and their effects on employees
  • evaluate motivational methods in a business context

CAIE A-Level Business AS 2.2.4 Motivation Methods Questions question 1

[Maximum number: 3]

Festival Wear (FW)

FW is a partnership started by two friends, Maz and Jane. FW manufactures and sells high quality T-shirts at $ 40 each. The business can manufacture 35000 T-shirts per month using mass customisation. The T-shirts are only sold at music festivals and concerts and are customised to each event. FW has never advertised the T-shirts, relying on a sales team to attend a festival or concert and personally sell the T-shirts.

Current costs:
- variable: $ 10 per T-shirt
- fixed: $ 200000 per month.

Sales average 27000 T-shirts per month. Currently the sales team is paid a monthly salary, but Maz is proposing a new payment method in order to increase sales volume. This will mean a lower monthly salary but a commission of $ 2 per T-shirt will be paid. Maz estimates that sales volume would increase to 30000 per month.

Costs if the new payment method is introduced:
- variable: $ 12 per T-shirt
- fixed: $ 182000 per month.

Explain one advantage to FW's employees of the new payment method.

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