Edexcel GCSE (9-1) Business

Calculation
practice Book

Student Name:
CONTENTS
Theme 1
Costs 3-9
Revenue, Profit and Loss 9-14
Interest 15-18
Break Even (Formula) 19-22
Break Even (Diagrams) 23-33
Cash-Flow 34-37
Summary Assessment (Theme 1) 38-43

Theme 2
Bar Gate Stock Graphs 44-53
Gross Profit and Net Profit 53-59
Gross Profit Margin and Net Profit Margin 60-64
Average Rate of Return 65-69
Summary Assessment (Theme 2) 70-77

Quantitative Skills
Percentages and Percentage Changes 78-84
Averages 85-90
Marketing and Market Data 91-97
Changes in Costs and Changes in Prices 98-99
Summary Assessment (Theme 1 and Theme 2) 100-105

Remember, always show your workings!

Written by S. Hudson, R. White and G. Prior

2 EDEXCEL GCSE (9-1) Business Calculation Practice Book

Theme 1
Costs
Question 1
Last year, a business had fixed costs of £875,000 and revenue of £2.5 million. The business had total variable costs
of £500,000 and sold 100,000 units. Calculate the total costs of the business last year.

Total cost = Fixed cost + total variable cost

875,000 + 500,000

1,375,000
£

Question 2
The table below shows some financial information relating to a business in April.
April
Fixed costs £18,000
Variable cost per unit £2.75
Number of units sold 5,450
Using the information in the table, calculate the total costs of the business for April.

Total cost = Fixed cost + Total variable cost

18,000 + ( 2.75* 5,450)
32,988
£

Question 3
A business has provided the following financial information relating to the first quarter of the year.
January – March
Number of units sold 24,000
Total costs £187,500
Fixed costs £91,500

Using this information, calculate the total variable costs for the business for this period.

Total costs = Fixed costs - variable costs

Variable costs = Total costs - Fixed costs
187,500 - 91,500

£ 96,000

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Question 4
A business generated £250,000 of revenue last month. Its total costs were 35% of its revenue during that period.
Calculate the total costs of the business last month.

250,000 = 100%
? = 35 %

£ 87,500

Question 5
The graph below shows the sales volume a small business generated from three different products last year. The fixed
costs last year were £125,000. The variable cost per unit for each product is shown in the table.
70,000

60,000

50,000

40,000
Units

30,000

20,000

10,000

0
Product A Product B Product C

Variable cost per unit

Product A £2.00
Product B £3.75
Product C £5.00

Using the information provided, calculate the total costs of the business last year.

Product A = 2.00* 60,000 = 360,000

Product B = 3.75* 52,000 = 195,000
Product C = 5.00* 38,000 = 190,000

Total cost = Fixed cost + variable cost

125,000+(360,000+195,000+190,000) 870,000
£

4 EDEXCEL GCSE (9-1) Business Calculation Practice Book

Question 6
The graph below shows the fixed costs and total costs of a small business.
£10,000
£9,000
£8,000
£7,000 Total costs
£6,000 Fixed costs
Costs

£5,000
£4,000
£3,000
£2,000
£1,000
£0
0 100 200 300 400 500 600
Units
Using the information provided:
i Identify the value of the fixed costs of the business.

£ 6,000

ii Identify the total costs of the business at 200 units.

Total costs = Fixed cost + variable cost

According to the graph = 6,000 + 1000

7,000
£

iii Calculate the total variable costs of the business at 600 units.

Total cost - Fixed cost

9,000 - 6,000

3,000
£

iv Calculate the variable cost per unit.

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Question 7
The total costs of a business over time are shown in the graph below.

Last year
Years

This year

Next year

£0 £20,000 £40,000 £60,000 £80,000 £100,000 £120,000

Total costs

Using the information provided:

i Calculate the average total costs of the business over the three years. Give your answer to two decimal places.

Average = Total / number

= ( 60,000 +92,000 + 108,000) / 3

£ 86666.66

ii If the fixed costs of the business last year amounted to £40,000, calculate the value of the total variable
costs of the business last year.

Total variable cost = Total cost - Fixed cost

= 108,000 - 40,000

68,000
£

iii Calculate the percentage decrease in the total costs of the business between last year and next year.
Give your answer to two decimal places.

% decrease = Difference/larger * 100

= (108,000 - 60,000) /108,000* 100

44.4%
£

6 EDEXCEL GCSE (9-1) Business Calculation Practice Book

Question 8
The fixed costs and total variable costs of a business are shown in the graph below.
£500,000
£450,000
£400,000
£350,000 Total variable costs
£300,000 Fixed costs
Costs

£250,000
£200,000
£150,000
£100,000
£50,000
£0
0 2,000 4,000 6,000 8,000 10,000
Units
Using the information provided, calculate:
i The total costs of the business at 10,000 units.

Total cost = Fixed cost + Variable cost

200,000 + 500,000

700,000
£

ii The total variable costs of the business as a percentage of fixed costs at 2,000 units.

iii The variable cost per unit.

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Question 9
The chart below shows the number of units a business sold this year and last year.
2,000

1,800

1,600

1,400
Number of units ‘000s

1,200

1,000

800

600

400

200

0
Last year This year
Year

i Using the information in the chart, calculate the percentage increase in the number of units sold between this
year and last year.

% increase = Difference/smaller * 100

(1,800 - 1,600)/ 1,600 *100

12.5
%

ii If the business expects to sell 30% more units next year compared to this year, calculate the number
of units the business expects to sell next year.

1800 units = 100%

? = 130%

2,340 units

8 EDEXCEL GCSE (9-1) Business Calculation Practice Book