Business Studies May/June 05 P3
This document consists of 5 printed pages and 3 blank pages.
SP (SJF3336) S76942/3
© UCLES 2005 [Turn over
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education
Advanced Level
BUSINESS STUDIES 9707/03
Paper 3 Case Study
May/June 2005
3 hours
Additional Materials: Answer Booklet/Paper
READ THESE INSTRUCTIONS FIRST
If you have been given an Answer Booklet, follow the instructions on the front cover of the Booklet.
Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen on both sides of the paper.
You may use a soft pencil for any diagrams, graphs or rough working.
Do not use staples, paper clips, highlighters, glue or correction fluid.
Section A
Answer all questions.
Section B
Answer one question.
At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part question.
The businesses described in this question paper are entirely fictitious.
Candidates are advised to spend 40 minutes on Section B. www.XtremePapers.com 2
9707/03/M/J05
WOTTON COLLEGE
The current situation
Wotton College is a private school with 300 students. It charges a fee of $2000 per year for each student. It is owned by Paula Njie who is also the Head of the school. Paula aims to make a profit every year but the last twelve months have been very difficult for the school. Costs have risen, mainly because of over-spending by subject departments. Income from fees has increased but not by enough to cover these costs. As a result, the school’s equipment has not been updated recently and some of the buildings are poorly maintained. Wotton College cannot teach more than 320 students in the present buildings.
Paula increased student fees in January 2005. She is worried that another increase in 2006 could actually reduce revenue. The Private School Association has estimated the following elasticities of student demand for private
SP (SJF3336) S76942/3
© UCLES 2005 [Turn over
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education
Advanced Level
BUSINESS STUDIES 9707/03
Paper 3 Case Study
May/June 2005
3 hours
Additional Materials: Answer Booklet/Paper
READ THESE INSTRUCTIONS FIRST
If you have been given an Answer Booklet, follow the instructions on the front cover of the Booklet.
Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen on both sides of the paper.
You may use a soft pencil for any diagrams, graphs or rough working.
Do not use staples, paper clips, highlighters, glue or correction fluid.
Section A
Answer all questions.
Section B
Answer one question.
At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part question.
The businesses described in this question paper are entirely fictitious.
Candidates are advised to spend 40 minutes on Section B. www.XtremePapers.com 2
9707/03/M/J05
WOTTON COLLEGE
The current situation
Wotton College is a private school with 300 students. It charges a fee of $2000 per year for each student. It is owned by Paula Njie who is also the Head of the school. Paula aims to make a profit every year but the last twelve months have been very difficult for the school. Costs have risen, mainly because of over-spending by subject departments. Income from fees has increased but not by enough to cover these costs. As a result, the school’s equipment has not been updated recently and some of the buildings are poorly maintained. Wotton College cannot teach more than 320 students in the present buildings.
Paula increased student fees in January 2005. She is worried that another increase in 2006 could actually reduce revenue. The Private School Association has estimated the following elasticities of student demand for private