Question detail
MetroMove serves repeat customers while raising prices; the case evidence includes unit contribution of ?10,476, sales of 861 units, and a 7% change in costs or demand. Recommend how the business should respond to Calculate cash flow forecast figures, including total costs, total revenue and net cash flow.
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
Question
Type
exam_style
Style
Topic
Quantitative skills in business
Question
MetroMove serves repeat customers while raising prices; the case evidence includes unit contribution of ?10,476, sales of 861 units, and a 7% change in costs or demand. Recommend how the business should respond to Calculate cash flow forecast figures, including total costs, total revenue and net cash flow.
Answer
Structure the judgement carefully. Apply costs, cash flow forecast, revenue to MetroMove serves repeat customers while raising prices, 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 ?13,876 or 7%, and reaches a supported judgement based on the business objective.
Explanation
Start with the business context. 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 margin and markup, which helps the final judgement stay precise.
Common mistake
Calculation requirements common mistake 1
Giving a vague answer instead of directly addressing: Calculate cash flow forecast figures, including total costs, total revenue and net cash flow..
Answer by clearly explaining how to calculate cash flow forecast figures, including total costs, total revenue and net cash flow..
Related flashcards
Flashcard 1 of 5
Related practice questions
Question 1 of 5
Choose an answer, get feedback, then move sideways through the set.
