Finance

Calculate Bramble & Bean's profit in 2025.

Which one of the following is an internal source of finance?

Gross profit is calculated as:

The break-even point is where:

A business has revenue of £80,000 and gross profit of £20,000. Calculate its gross profit margin.

Fixed costs are £6,000, selling price is £15 and variable cost per unit is £7. Calculate the break-even level of output. Show your working.

Explain one disadvantage to a small business of using a bank overdraft.

Calculate Lumen & Loom's closing balance for February.

Case study (fictional business written for this paper): Northfold Brewery Ltd makes craft beer in Yorkshire. Last year: revenue £1,200,000, cost of sales £700,000 and other expenses £350,000. It plans a £200,000 canning line expected to generate total extra profit of £150,000 over 5 years. It must choose how to finance the investment. Interest rates have recently risen. Calculate Northfold Brewery's net profit margin.

Calculate the average rate of return (ARR) on the canning line. Show your working.

Explain two sources of finance Northfold Brewery could use for the canning line.

Evaluate whether Northfold Brewery should finance the canning line with a bank loan or by selling shares to new investors.