Question detail
BrightBake serves repeat customers while raising prices; the case evidence includes unit contribution of ?10,732, sales of 122 units, and a 15% change in costs or demand. Analyse how the business should respond to Explain how exchange rates can affect profits and sales for businesses that import.
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At a glance
Question
Type
exam_style
Style
Topic
Globalisation
Question
BrightBake serves repeat customers while raising prices; the case evidence includes unit contribution of ?10,732, sales of 122 units, and a 15% change in costs or demand. Analyse how the business should respond to Explain how exchange rates can affect profits and sales for businesses that import.
Answer
Start with the business context. Apply exchange rates, profit, sales to BrightBake serves repeat customers while raising prices, then explain how the decision changes supplier lead time, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for customers, uses figures such as ?14,132 or 15%, and reaches a supported judgement based on the business objective.
Explanation
Use the command word first. This explanation is anchored to Exchange rates and Globalisation 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
Exchange rates common mistake 1
Giving a vague answer instead of directly addressing: Explain how exchange rates can affect profits and sales for businesses that import..
Answer by clearly explaining how to explain how exchange rates can affect profits and sales for businesses that import..
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