PLK is a social enterprise that trains young people who leave school without qualifications. PLK chefs show them how to prepare food, and this food is then sold at nearby markets or sporting events. Choosing the most suitable promotion method matters. PLK’s manager believes profit will rise more if prices are increased than if cheaper ingredients are used.
(a)[2]
State the meaning of ‘social enterprise’.
(b)[2]
State what is meant by ‘fixed costs’.
(c)[4]
Calculate PLK’s profit for one week.
(d)[6]
Identify and explain two promotion methods PLK could use to boost sales.
(e)[6]
Do you agree with PLK’s manager that profit would increase more by raising prices than by 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 the aim to make a profit” …