6.2 The Economic Climate
Glorious Kitchens Ltd
Glorious Kitchens (GK) is a private limited company based in Brighton. The company makes and fits high-quality, luxury wooden kitchens throughout the south-east of England. Its most popular range is the Deluxe.
The average price of a Deluxe kitchen is £15 000 including fitting. GK calculates its fixed costs for the year to be £250 000 and its variable costs for the Deluxe to be £6380, which means they need to sell 29 kitchens to break even.
GK is concerned about the future economic climate and its possible impact on the company’s sales. It is predicted that there will be a fall in consumer incomes in the south-east of England until 2025. Unemployment in the south-east of England is forecast to follow the trend shown in Table 1.
Table 1
Unemployment rate | |
2022 | 4.0% |
2023 (forecast) | 3.7% |
2024 (forecast) | 3.4% |
2025 (forecast) | 3.1% |
Financial data for GK at the end of 2022 is shown in Table 2.
Table 2
Net profit | £425 000 |
Cash at the bank | £60 000 |
Loans taken out by GK | £1 500 000 |
Donations to food banks in Brighton | £8 500 |
(i) Analyse one impact on GK of the predicted fall in consumer incomes.
[3]
(ii) Analyse one impact on GK of the forecast change in the unemployment rate shown in Table 1.
[3]
(iii) Recommend whether the predicted fall in consumer incomes or the forecast change in the unemployment rate will have the greatest impact on GK.
[3]
Ai এর মাধ্যমে
১০ লক্ষ+ প্রশ্ন ডাটাবেজ
প্র্যাকটিস এর মাধ্যমে নিজেকে তৈরি করে ফেলো
উত্তর দিবে তোমার বই থেকে ও তোমার মত করে।
সারা দেশের শিক্ষার্থীদের মধ্যে নিজের অবস্থান যাচাই
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