Question detail
QuickFix Repairs serves commuters while opening a second outlet; the case evidence includes net profit margin of ?2,585, sales of 230 units, and a 40% change in costs or demand. Which option best applies 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
MCQ
Type
practice
Style
Topic
Globalisation
Question
- A. Use exchange rates, profit, sales to judge gross profit margin, local community impact, and the business objective in Exchange rates.
- B. Give only a definition of Globalisation without using the case evidence.
- C. Treat fixed and variable costs 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 exchange rates, profit, sales to judge gross profit margin, local community impact, and the business objective in Exchange rates.
Explanation
This is the best-supported choice because Use exchange rates, profit, sales to judge gross profit margin, local community impact, and the business objective in Exchange rates. The case evidence gives ?4,085, 230 units, and 40%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse fixed and variable costs, miss the local community, or ignore the business objective.
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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