Northline Gym serves commuters while opening a second outlet; the case evidence includes net profit margin of ?7,298, sales of 843 units, and a 33% change in costs or demand. Recommend how the business should respond to Explain that Paper 1 includes multiple-choice and short-answer questions plus case-study/data-response stimuli.

Structure the judgement carefully. Apply Paper 1 to Northline Gym serves commuters while opening a second outlet, then explain how the decision changes labour productivity, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for owners, uses figures such as ?10,698 or 33%, and reaches a supported judgement based on the business objective.

Start with the business context. This explanation is anchored to Paper 1 assessment context and Assessment structure and business contexts because it links the command word to scenario evidence, commercial reasoning, financial impact, and stakeholder consequences. It also separates revenue and profit, which helps the final judgement stay precise.