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IB Business Management HL 6.1.13 Hl Contribution Questions

Practise 6.1.13 (HL) Contribution in IB Business Management HL by connecting concepts to case evidence and decisions.

Syllabus
First assessment 2024
Course
Business management HL
Level
HL

Exam points

  • HL tool including make or buy analysis, contribution costing, and absorption costing
  • Suggested integration: Units 3, 4, and 5

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Study 6.1.13 (HL)—Contribution conceptsOpen the corresponding Concept lesson for explanations, examples and exam connections.

IB Business Management HL 6.1.13 Hl Contribution Questions question 1

[Maximum number: 3]

Jill Anderson


Jill Anderson operates a restaurant. Although Jill's meals are viewed as being excellent quality, sales are slowing. Jill is considering replacing existing meals with gluten-free meals. The following financial and forecast information is for the month of May 2018. Jill's restaurant can only produce either existing or gluten-free meals.

Table 1: Existing meals

Table 1: Existing meals

Table 2: Estimated costs and price if Jill produces the gluten-free meals

Table 2: Estimated costs and price if Jill produces the gluten-free meals

A local gluten-free manufacturer, which is not part of Jill's existing supply chain, has offered to supply already prepared gluten-free meals at $8\$ 8 per meal. Jill is unsure whether to make or buy the gluten-free meals.

Question (a)

(a)

Calculate:

[ 3 ]

Question (i)

(i)

the total profit or loss on existing meals for May 2018 (show all your working);

[ 1 ]

Question (ii)

(ii)

the forecast profit or loss if Jill decides to make and sell gluten-free meals (show all your working);

[ 2 ]
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