OCR AS Level Business Past Papers

Break-even analysis is a reliable source of marks if approached correctly. The break-even quantity is calculated as Fixed Costs ÷ Contribution per unit, where Contribution per unit = Selling price − Variable cost per unit. Margin of safety = Actual or budgeted output − Break-even output. Profit at any output level = (Actual output − Break-even output) × Contribution per unit. When drawing a break-even chart, label both axes clearly, draw the total costs line (starting from fixed costs on the y-axis) and the total revenue line (starting from the origin), and mark the break-even point precisely. Label the margin of safety as a horizontal distance between the break-even point and the current output. Motivation theory questions are almost always on the paper and require precise application. Maslow's hierarchy of needs is the most widely known but should be applied carefully — not every worker's motivation is driven by self-actualisation needs. Taylor's scientific management (piece-rate pay, standardised tasks) is most applicable to routine manual work. Herzberg's two-factor theory distinguishes hygiene factors (salary, working conditions, job security — which prevent dissatisfaction if adequate, but do not motivate) from motivators (achievement, recognition, responsibility — which genuinely motivate). For a question about a demotivated workforce, identify whether the issue is hygiene-related (poor pay, uncomfortable conditions) or motivator-related (lack of autonomy, poor recognition) before recommending a solution. For evaluation questions ('assess the impact of X on the business'), always consider both the short-term and long-term effects, and acknowledge uncertainty or context-dependence. A price reduction may boost sales volume in the short term but reduce profit margins and position the brand as low-quality in the longer term — this nuanced, conditional reasoning is what earns top marks.