Business 2025 · May/June · Paper 22

000 deliveries with the new contract. Table 1.1 Cost and revenue forecast for the QZ contract Direct costs (average per delivery) 5 Total indirect costs 9 000 Total revenue 40 000 TT employs 120 drivers. The majority of these drivers are white men aged between 40 and 60. A national newspaper has recently criticised the truck industry in country J for not having diversity and equality in the workplace. Klide, the Marketing Manager, has been set an objective to increase TT's revenue. He has decided to target small online retailers. TT will pick up individual products from the small online retailers and deliver them to households. This would require a new fleet of smaller trucks but has the potential to increase TT's revenue. Klide plans to use digital promotion to target these small online retailers.

(i) Identify one business activity within the quaternary sector.

Explain the term supply chain management.

(i) Refer to Table 1.1 and other information. Calculate TT's forecast total profit from the QZ contract.

Explain one reason why TT needs accurate cost information.

Analyse two advantages to TT of improving diversity and equality in the workplace.

Evaluate the usefulness of digital promotion to TT when targeting small online retailers. [12] 2 Personalised Blankets (PB) Kaia left university with a degree in textile design. Using her entrepreneurial qualities, Kaia set up PB as a sole trader. Her current objective is to break even. Kaia uses job production to make blankets which are personalised with a picture. Each customer logs into the PB website and chooses the size of blanket. The customer then uploads a picture that they want printed onto the blanket. Many of Kaia's customers buy the blankets as gifts for special occasions. Kaia has employed a social media influencer to promote her blankets. The influencer will be paid a salary of $250 a week and a 5% commission on revenue that comes directly from the influencer. Fig 2.1 shows the revenue that came directly from the social media influencer in February. Week 1 Week 2 Week 3 Week 4 1000 1500 2000 2500 3000 3500 4000 4500 Revenue ($) Fig. 2.1 Revenue directly from the social media influencer in February Kaia would like to relocate PB to larger premises. She is applying for external sources of finance, and she has written a five-year business plan to support her applications.

(i) Identify one external source of finance.

Explain the term business plan.

(i) Refer to Fig. 2.1 and other information. Calculate the total payment to the social media influencer in February.

Explain one disadvantage to Kaia of using a commission payment method.

Analyse one advantage and one disadvantage to Kaia of using job production.

Evaluate the most likely reason for Kaia's objectives to change over the next five years. [12] Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.