Scribd
Upload
247 views

Business Studies Insert Paper

Uploaded by

User22
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
247 views

Business Studies Insert Paper

Uploaded by

User22
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

2

Playsafe Playground Equipment (PPE)

Kaari has always been creative and made wooden toys for her two children when they were young.
Her children are now at school, so Kaari decided to start her own business making wooden
playground equipment.

Kaari started PPE as a sole trader business three years ago in country Z. She wants an income
from the business but also wants to spend time with her children. Kaari wants the business to
remain small. However, if the business grows Kaari may need to change to another type of business
organisation. Kaari carries out all the management roles in the business.

Kaari uses job production to produce high quality, individually designed playground equipment.
Kaari designs all the equipment herself and she employs 3 skilled workers to help her make the
products. PPE currently makes both large and small items of playground equipment each week.

Kaari uses cost-plus pricing as every item of playground equipment uses different quantities of raw
materials. She sells small items of playground equipment to retailers and large items of playground
equipment to the Government. There are many competitors in this market.

Kaari plans to obtain new machinery which will cost $20 000. She is considering using crowd-funding
as this is one way to raise capital for new business investment. Other options include leasing the
machinery or asking the bank for a loan.

Kaari has developed a new unique product this year. There are no other similar products in the
market.

Appendix 1

Advertisement for PPE

Buy your playground equipment from us.

At PPE we manufacture high quality playground equipment and have better designs than our
competitors.

All our equipment has been fully tested and is guaranteed to meet legal safety standards. We are
the main supplier of playground equipment to the Government for public parks - so you know our
equipment can be trusted!

Contact us today for a price list.

© UCLES 2021 11_0450_22_2021_1.1


3

Appendix 2

Cost and revenue information for PPE in 2021

Small item of playground Large item of playground


equipment equipment

Average selling price $100 $1 000

Average cost of manufacture $25 $500

Output each week 15 3

Appendix 3

Newspaper article – Main News 1st October 2021

Children need to get more exercise and play outside

Research suggests that playing outside helps children relax after school and improves their health.

The Government in country Z has allocated $10m to spend on improving children’s playgrounds
in public places. This means there will be $5 000 to spend on equipment for each public playground.

Retailers have reported increasing demand for small items of playground equipment as parents
want to have these products at home. This trend is expected to continue.

© UCLES 2021 11_0450_22_2021_1.1

You might also like