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Mark scheme

Marking points from the official mark scheme (Oct/Nov 2016). The mark or mark type is shown in brackets.

1. [4] (a)(i) Application [4 × 1] - award four marks for correct calculation. Cleaning: $150(1) / ($30(1) - $15(1)) = 10 houses per week (4)
2. [4] (a)(i) If just correct answer given with no working shown award 4 marks
3. [1] (a)(i) 1 mark for correct formula if the rest of the answer is incorrect: = Fixed costs/Contribution
4. [4] (a)(ii) Application [4 × 1] - award four marks for correct calculation. Cleaning: 30 cleaners × 20 hours a week x $10 price per hour = $6000 TR (1)
5. [4] (a)(ii) 30 cleaners × 20 hours a week x $5 wages per hour = $3000 TVC (1)
6. [4] (a)(ii) $6000 - ($150 (1) + $3000) = $2 850 per week (4)
7. [4] (a)(ii) If just correct answer with no calculations shown given award 4 marks
8. [1] (a)(ii) 1 mark for correct formula if rest of the answer is incorrect: TR – TC (FC + VC) = profit
9. [10] (b) Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below. Level 3: At least 2 x Level 2 + 9-10 marks for well justified conclusion as to which piece of financial information is most important and why it is more important than the other information. 7-8 marks for some limited judgement shown in the conclusion as to which piece of financial information is most important.
10. [6] (b) Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below. Level 2: 4-6 marks Detailed discussion of why each piece of financial information is important to the bank manager.
11. [3] (b) Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below. Level 1: 1-3 marks Outline of why each piece of financial information is important to the bank manager.
12. [2] (b) Award up to 2 additional marks for relevant application.
13. [1] (b) Relevant point: Break-even level of output: knowing how many customers are needed to cover all costs
14. [1] (b) Relevant point: Break-even level of output: how high is the margin of safety
15. [1] (b) Relevant point: Profitability of the business: the surplus left over after all the costs have been paid and provides a return on the investment of the partners
16. [1] (b) Relevant point: Profitability of the business: ability to repay the loan
17. [1] (b) Relevant point: Liquidity of the business: Ensures there is sufficient cash available to pay short-term debts otherwise the business might have to close/not able to repay the loan.