Nadia set up a sole trader business selling ice cream from a second-hand van. Nadia sold 50000 ice cream cones in her first year for $1 each. The cost of each ice cream cone is:
• $0.10 for the cone
• $0.30 for the ingredients
One of her other expenses is the cost of motor insurance for the van at $2000 per year.
Table 3.1 shows part of the expected Profit and Loss account (Income Statement) for Nadia's business after one year. [Table 3.1 Profit and Loss account with Sales revenue=?, Cost of cones=5000, Cost of ingredients=15000, Gross profit=?, Cost of insurance=2000, Profit for the year (net profit)=?]

Q: What topic does this question test?

This question tests Finance in O-Level Commerce (syllabus code 7100). It is worth 18 marks.

Q: Which exam paper is this question from?

This question appeared in the Cambridge O-Level Commerce May/June 2019 examination, Paper 2 Variant 2 (7100_s19_qp_22.pdf).

Question

Nadia set up a sole trader business selling ice cream from a second-hand van. Nadia sold 50000 ice cream cones in her first year for $1 each. The cost of each ice cream cone is:
• $0.10 for the cone
• $0.30 for the ingredients
One of her other expenses is the cost of motor insurance for the van at $2000 per year.
Table 3.1 shows part of the expected Profit and Loss account (Income Statement) for Nadia's business after one year. [Table 3.1 Profit and Loss account with Sales revenue=?, Cost of cones=5000, Cost of ingredients=15000, Gross profit=?, Cost of insurance=2000, Profit for the year (net profit)=?]

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