Exam-style questions: Short answer and
data response
1 Ikram is a hairdresser. His revenue was 10 per cent higher this year than last year.
He earned revenue of [tex]$50000 last year. He charged an average of $[/tex]5 for each
customer last year and has
not increased prices. He buys in materials such as
shampoo and
hairspray and has calculated that the cost is an average of [tex]$2 for each customer. He estimates that his overhead expenses are $[/tex]10000 this year.
a Define 'revenue
'.
b Calculate Ikram's revenue this year. Show your working.
c Identify four costs likely to be included in Ikram's annual
overhead expenses.
d Calculate Ikram's net profit this year (using your result from b).
Show your working.
e Ikram thinks that his net profit next year will be higher if
he increases average prices to $6 per customer. Do you agree?
Justify your answer.
2
[2]
[2]
[4]
[6]
Defi
[6]
The
​