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CAIE IGCSE Business Studies 5.3. Profit & loss Question Bank

Practise explaining why profit matters, using profit or loss data, and judging business decisions from revenue, costs and expenses.

Syllabus
2027–2029
Course
Business 0264

Exam points

  • calculate missing expenses, profit or cost figures from income statement extracts
  • justify profit decisions by linking revenue, costs and business aims to the case
  • compare profit evidence for two businesses before recommending an option

Covered syllabus points

5.3.1—What is profit and why it is important5.3.2—Statement of profit or loss

5.3. Profit and loss question 1

[Maximum number: 2]

Alana opened a restaurant in the city centre 5 years ago. The restaurant provides plant-based meals using a range of vegetables. Alana uses primary market research to help identify changes in consumer spending patterns. Market research can also be used to help segment a market. The restaurant has 16 employees. Each employee is paid the legal minimum wage. In 2023 the business made a profit of $ 80000. Alana wants to know how an increase in interest rates might affect her business.

Define 'profit'.

5.3. Profit and loss question 2

[Maximum number: 2]

Elton is a sole trader. He sells specialist clothing and equipment for sports, including baseball and hockey. It is a niche market. Elton started his business 5 years ago and it has remained small. A wide range of inventory is important. Elton has been looking at the financial performance of his business. The profit margin for 2018 was 35%. An extract of the accounts is shown in Table 3.1.

Table 3.1

Table 3.1

Calculate X and Y.

X:

Y:

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