Question 1 · Both levels
Ardee Roasters buys green coffee beans from a farming co-operative in Colombia under a five-year agreement. In the business model of Ardee Roasters, the co-operative is best described as which element?
Leaving Cert Business calculations
Business questions often hand you figures and ask what they show. Show each step, say what the answer means for the business or household, and keep units in euro.
| Break-even | Fixed costs divided by contribution per unit |
|---|---|
| Margin of safety | Planned output minus break-even output |
| Our practice | A business data question in every section |
Work, then meaning
Write the formula, put in the figures, and give the answer with its unit. Then say what it means: a business that sells below its break-even point makes a loss.
Ratios and cash flow
A ratio is only useful compared with something: last year, a rival, or a target. In a cash flow forecast, find the month the closing balance goes negative and suggest a way to cover it.
Household and employee figures
Budgets, loans, savings and payslips follow the same steps. Tax rates change each year, so use the rates the question gives you.
Try 2 questions
Question 2 · Both levels
Aisling keeps €5,000 in a savings account paying 2% interest a year. Over the same year, prices rise by 4%. What happens to the real value of her savings?
Next step
Questions people ask
Do I need to learn this year's tax rates?
Use the rates the question gives. This course states any rate inside the question.