Question detail
MetroMove serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?3,316, sales of 136 units, and a 37% change in costs or demand. Analyse how the business should respond to Calculate average rate of return.
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At a glance
Question
Type
exam_style
Style
Topic
Quantitative skills in business
Question
MetroMove serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?3,316, sales of 136 units, and a 37% change in costs or demand. Analyse how the business should respond to Calculate average rate of return.
Answer
Start with the business context. Apply average rate of return to MetroMove serves small retailers while taking a loan, then explain how the decision changes net profit margin, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for customers, uses figures such as ?6,716 or 37%, and reaches a supported judgement based on the business objective.
Explanation
Use the command word first. This explanation is anchored to Calculation requirements and Quantitative skills in business because it links the command word to scenario evidence, commercial reasoning, financial impact, and stakeholder consequences. It also separates gross and net profit, which helps the final judgement stay precise.
Common mistake
Calculation requirements common mistake 1
Giving a vague answer instead of directly addressing: Calculate average rate of return..
Answer by clearly explaining how to calculate average rate of return..
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