Mohammed owns a bakery. He makes bread and cakes. He employs three workers who help him mix the dough for the bread and cakes, put the dough into tins, bake the bread and cakes, and serve customers. Mohammed has calculated that the ‘added value’ of his business is low. His customers complain when he tries to increase his prices. ‘We can buy the same bread and cakes at lower prices,’ they tell him.. a Define ‘added value’.

[2]
b Identify the opportunity cost to Mohammed of buying a new
oven.

[2]
c Outline two benefits to Mohammed’s business of all of his
workers being able to do all of the jobs in the bakery.

[4]
d Explain two ways in which Mohammed could increase the value
added of his bakery business.

[6]

e A friend told Mohammed, ‘Your business would be more
successful if you only served in the shop and let your workers
make the bread and cakes.’ Do you agree? Justify your answer.
[6]

Abenefit of using a debit or credit card instead of cash is that it provides a paper record of a purchase. looking at the purchases below, which one should be made using a credit or a debit card?

The struter partnership has total partners’ equity of $510,000, which is made up of main, capital, $400,000, and frist, capital, $110,000. the partners share net income and loss in a ratio of 80% to main and 20% to frist. on november 1, adison is admitted to the partnership and given a 15% interest in equity and a 15% share in any income and loss. prepare journal entries to record the admission of adison for a 15% interest in the equity and a 15% share in any income and loss under the following independent assumptions. (1) record the admission of adison with an investment of $90,000 for a 15% interest in the equity and a 15% share in any income and loss. (2) record the admission of adison with an investment of $120,000 for a 15% interest in the equity and a 15% share in any income and loss. (3) record the admission of adison with an investment of $80,000 for a 15% interest in the equity and a 15% share in any income and loss.

Sam and diane are completing their federal income taxes for the year and have identified the amounts listed here. how much can they rightfully deduct? • agi: $80,000 • medical and dental expenses: $9,000 • state income taxes: $3,500 • mortgage interest: $9,500 • charitable contributions: $1,000.