Question detail
Northline Gym serves repeat customers while raising prices; the case evidence includes unit contribution of ?7,889, sales of 644 units, and a 40% change in costs or demand. Which option best applies Explain revenue, costs, profit and loss?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Financial terms and calculations
Question
- A. Use revenue, loss, profit to judge break-even output, local community impact, and the business objective in Costs, revenue, profit and loss.
- B. Give only a definition of Financial terms and calculations without using the case evidence.
- C. Treat gross and net profit as identical and ignore the effect on local community.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use revenue, loss, profit to judge break-even output, local community impact, and the business objective in Costs, revenue, profit and loss.
Explanation
This is the best-supported choice because Use revenue, loss, profit to judge break-even output, local community impact, and the business objective in Costs, revenue, profit and loss. The case evidence gives ?9,389, 644 units, and 40%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse gross and net profit, miss the local community, or ignore the business objective.
Common mistake
Costs, revenue, profit and loss common mistake 1
Giving a vague answer instead of directly addressing: Explain revenue, costs, profit and loss..
Answer by clearly explaining how to explain revenue, costs, profit and loss..
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