O-LevelCommerceWholesale trade7100/22 · May/June 2017 · Q120 Marks

S Wholesalers imports high quality food products which it sells to retailers.

(a)Identify one type of transport that S Wholesalers might use to deliver goods to retailers.[1]
(b)(i)Describe two advantages to a retailer of purchasing high quality food products from S Wholesalers.[4]
(b)(ii)S Wholesalers is considering opening its own retail shop. Do you think it should do this? Give reasons for your answer.[4]
(c)The products shown in Fig. 1 have been sold to M Retail. S Wholesalers INVOICE To: M Retail Invoice No: 1794 Date: 1 April 2017 Terms: 5% 30 days Product Code Item Quantity Unit Price $ Amount $ 4476 Duck Pâté 2 boxes 25.00 50.00 8732 Bread Sticks 4 boxes 10.00 40.00 Amount payable 90.00 [Figure 1.0] Use Fig. 1 to help you answer the following questions.
(c)(i)Calculate the total amount paid by M Retail if it pays the invoice within 30 days. Show your working.[3]
(c)(ii)Should S Wholesalers offer this discount?[2]
(d)Discuss whether or not wholesalers, such as S Wholesalers, are likely to survive in the future.[6]

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.

Mark scheme

Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.

[1] Any type of transport or example e.g. van, boat x 1 mark
[4] 1 mark for any two advantages stated plus 1 further mark for each description.
[4] 1 mark for each reason stated plus 1 mark for each judgement made. Reasons can be either side.
[3] OFR applies.
[3] 90 × 5 / 100 (1) = $4.5 (1)
[3] 90 – 4.5 = $85.5 (1)
[3] Award full marks for the correct answer without working.
[2] Yes (1) plus one mark for one point given: Encourages purchaser to pay promptly, Improves cash flow of S Wholesalers, Reduces chance of bad debts, Encourages customer to buy again, Attract customers/increases sales
[2] OR No (1) plus one mark for each point given: Less money received
[6] Level 2 (4–6 marks) Has discussed whether or not S Wholesalers are likely to survive and given reasoning (if a candidate has presented a one-sided argument, award 4 marks max).
[6] Level 1 (1–3 marks) Has commented on the statement.

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