Question detail
SwiftServe serves repeat customers while raising prices; the case evidence includes unit contribution of ?2,901, sales of 971 units, and a 42% change in costs or demand. Explain how the business should respond to Explain how exchange rates can affect profits and sales for businesses that import.
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
Question
Type
exam_style
Style
Topic
Globalisation
Question
SwiftServe serves repeat customers while raising prices; the case evidence includes unit contribution of ?2,901, sales of 971 units, and a 42% change in costs or demand. Explain how the business should respond to Explain how exchange rates can affect profits and sales for businesses that import.
Answer
Separate the trade-offs before concluding. Apply exchange rates, profit, sales to SwiftServe serves repeat customers while raising prices, then explain how the decision changes average order value, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for suppliers, uses figures such as ?6,301 or 42%, and reaches a supported judgement based on the business objective.
Explanation
Build the answer from the scenario. 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 cash flow and 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..
Related flashcards
Flashcard 1 of 5
Related practice questions
Question 1 of 5
Choose an answer, get feedback, then move sideways through the set.
