Sample question

Martin and Ashley started their window cleaning business with £1,500 they borrowed from Ashley's dad, and a £550 bank loan. They used the money to buy a second hand van and cleaning equipment. Ashley's dad doesn't charge any interest. They pay him back £50 a month. They also have to pay the bank £50 a month over two years. They don't get many bookings in winter when the weather is bad. Martin and Ashley aim to pay themselves £50 a month each.

What costs do Martin and Ashley have to meet even when they have no customers? (10 marks)

When you have finished take a look at the sample answers on the next page.