Question detail
QuickFix Repairs serves repeat customers while raising prices; the case evidence includes unit contribution of ?8,450, sales of 855 units, and a 17% change in costs or demand. Assess how the business should respond to Evaluate possible solutions to cash flow problems, including rescheduling payments, using overdrafts, reducing cash outflow, increasing cash inflow and finding new sources of finance.
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At a glance
Question
Type
exam_style
Style
Topic
Cash flow
Question
QuickFix Repairs serves repeat customers while raising prices; the case evidence includes unit contribution of ?8,450, sales of 855 units, and a 17% change in costs or demand. Assess how the business should respond to Evaluate possible solutions to cash flow problems, including rescheduling payments, using overdrafts, reducing cash outflow, increasing cash inflow and finding new sources of finance.
Answer
Use the command word first. Apply cash inflow, overdraft, rescheduling payments, cash outflow to QuickFix Repairs serves repeat customers while raising prices, then explain how the decision changes capacity utilisation, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for owners, uses figures such as ?11,850 or 17%, and reaches a supported judgement based on the business objective.
Explanation
Structure the judgement carefully. This explanation is anchored to Solving cash flow problems and Cash flow because it links the command word to scenario evidence, commercial reasoning, financial impact, and stakeholder consequences. It also separates stakeholders and shareholders, which helps the final judgement stay precise.
Common mistake
Solving cash flow problems common mistake 1
Giving a vague answer instead of directly addressing: Evaluate possible solutions to cash flow problems, including rescheduling payments, using overdrafts, reducing cash outflow, increasing cash inflow and finding new sources of finance..
Answer by clearly explaining how to evaluate possible solutions to cash flow problems, including rescheduling payments, using overdrafts, reducing cash outflow, increasing cash inflow and finding new sources of finance..
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