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CAIE IGCSE Business Studies 7.3.3 Profit

Practise calculating profit from revenue and costs, using table data to combine variable costs, fixed costs and final surplus.

Syllabus
2027–2029
Course
Business 0264

Exam points

  • calculate profit by subtracting total costs from total revenue using business data
  • show intermediate revenue and cost working before giving the final profit figure

7.3.3—Profit question 1

[Maximum number: 4]

RVC uses batch production to manufacture a large range of products including soap and shampoo. Many of the products are at different stages of the product life cycle. The Marketing Director has been reviewing some data for one brand of soap, as shown in Table 2.1. She said: 'Last year sales were 80000 units a week. I want to know the current level of profit and margin of safety.' The Marketing Director has to decide on a suitable extension strategy. The choice is between new packaging or targeting new markets.

Table 2.1

Table 2.1

Using Table 2.1, calculate the weekly profit. Show your working.

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