Business Studies · May / June 2021 · Paper 14 · Question 1

Marty owns a book shop in the city centre. He has been analysing the financial performance of his business. An extract from the accounts is shown in Table 1.1. In the last 2 years, revenue has decreased by 50%. Marty thinks increased competition is one reason for this. Marty plans to change his pricing strategy. He is also considering the different methods of promotion he could use to increase sales. Table 1.1 Extract from Marty’s income statement for year ending 31 December 2020 ($) Revenue 80000 Cost of sales X Gross profit 60000 Expenses 45000 Profit Y

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