PLK is a social enterprise that provides training for young people who leave school without any qualifications. PLK chefs train the young people to prepare food, and this food is then sold at local markets or sporting events. Selecting the most suitable promotion method is important. The manager of PLK believes that, in order to increase profit, it is better to increase prices than to use cheaper food ingredients.
(a)[2]
What does the term 'social enterprise' mean?
(b)[2]
What does the term 'fixed costs' mean?
(c)[4]
Calculate the weekly profit for PLK.
(d)[6]
Identify and explain two promotional methods PLK could use to boost sales.
(e)[6]
Do you agree with PLK's manager that increasing prices would be a better way to raise profit than using cheaper ingredients? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Business with social objectives as well as an aim to make a profit” …