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
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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