Mark Scheme

April 2016
Results

PEARSON LCCI Level 3 Advanced Business

Calculations (ASE3003)
LCCI Qualifications

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Publication Code: 50582_ms
© Pearson Education Ltd 2016
2 ASE3003
April 2016
General Marking Guidance

 All candidates must receive the same treatment. Examiners must mark the
first candidate in exactly the same way as they mark the last.

 Mark schemes should be applied positively. Candidates must be rewarded

for what they have shown they can do rather than penalised for omissions.

 Examiners should mark according to the mark scheme not according to

their perception of where the grade boundaries may lie.

 There is no ceiling on achievement. All marks on the mark scheme should

be used appropriately.

 All the marks on the mark scheme are designed to be awarded. Examiners
should always award full marks if deserved, i.e. if the answer matches the
mark scheme. Examiners should also be prepared to award zero marks if
the candidate’s response is not worthy of credit according to the mark
scheme.

 Where some judgement is required, mark schemes will provide the

principles by which marks will be awarded and exemplification may be
limited.

 When examiners are in doubt regarding the application of the mark scheme
to a candidate’s response, the team leader must be consulted.

 Crossed out work should be marked UNLESS the candidate has replaced it
with an alternative response.

3 ASE3003
April 2016
Question Answer Mark
Number
Balance = £2.97 x 365 / (5 x 2.25%) M1
1 (a)
= £9,636 A1 (2)

Question Answer Mark

Number
Balance = £2.969439 x 365 / (5 x 2.25%) M1
1 (b)
= £9,634.179867

= £9,634.18 A1r (2)

Question Answer Mark

Number
Daily interest = £550 x 8.9% / 365 = £0.1341 M1
1 (c)
= 13.4p A1 (2)

Question Answer Mark

Number
1.0334 = 1.138678934 M1
1 (d)
Of which, interest = 1.138678934 – 1 M1

= 0.138678934

Principle = £41,603.68 / 0.138678934 M1

= £299,999.999

= £300,000 A1r (4)

Question Answer Mark

Number
Rate of interest = £1,099.80 / £56,400 = 0.0195 M1
1 (e)
= 1.95% A1 (2)

Total for Question 1 – 12 marks

4 ASE3003
April 2016
Question Answer Mark
Number
Company A:
2
Total cost of shares = 15,000 x £9.80 + £95 M1

= £147,095 A1

Dividend = 3.5% x 15,000 x £5 M1

= £2,625 A1

Company B:

Buying price per share

= (£136,000 - £70) / 23,000 M1

= £5.91 A1

Nominal value per share

= £5,980 / (23,000 x 2.6%) M1

= £10 A1

Company C:

Number of shares = (£12,500 - £90) / £1.46 M1

= 8,500 A1

Dividend percent = £238 / (8,500 x £40) M1

= 0.0007

= 0.07% A1

Total for Question 2 – 12 marks

5 ASE3003
April 2016
Question Answer Mark
Number
Selling price per unit = £216,000 / 30,000 M1
3 (a)(i)
= £7.20 A1 (2)

Question Answer Mark

Number
Income from sales of 15,000 units = £216,000 / 2
M1
3 (a)(ii) Or = £7.20 x 15,000

= £108,000 A1 (2)

Question Answer Mark

Number
3 (b) Fixed costs per period = £51,000 A1

Question Answer Mark

Number
Variable cost per 20,000 units

3 (c) = £161,000 - £51,000 M1

= £110,000

Variable cost per unit = £110,000 / 20,000 M1

= £5.50 A1

Question Answer Mark

Number
For example:
3 (d)
Contribution = £7.20 - £5.50 = £1.70 M1

Lines cross at £51,000 / £1.70 = 30,000 units A1

Therefore, Ivan is correct. A1

Question Answer Mark

Number
3 (e) The crossing point represents break-even. A1

Total for Question 3 – 12 marks

6 ASE3003
April 2016
Question Answer Mark
Number
Average stock = (£90,040 + £93,000) / 2 M1
4 (a)
= £91,520 A1 (2)

Question Answer Mark

Number
Average number of days in stock
4 (b)(i)
= 365 x £91,520 / £803,000 M1

= 41.6 days (Accept 42 days) A1 (2)

Question Answer Mark

Number
Net purchases = £803,000 - £90,040 + £93,000 M1
4 (b)(ii)
= £805,960 A1 (2)

Question Answer Mark

Number
Purchases = £805,960 + £5,160 M1
4 (c)
= £811,120 A1 (2)

Question Answer Mark

Number
Stock held at end of 2015 M1
4 (d) = 2 x £91,480 - £93,000
= £89,960 A1 (2)

Question Answer Mark

Number
Cost of goods sold in 2015 = £91,480 x 9 M1
4 (e)
= £823,320

Net purchases in 2015

= £823,320 - £93,000 + £89,960
M1
= £820,280
A1 (3)

Total for Question 4 – 13 marks

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April 2016
Question Answer Mark
Number
d = 900,000 A1
5 (a)(i)
e = (3,500,000) + (250,000) = (3,750,000) A1

f = (150,000) + 900,000 = 750,000 A1

g=1 A1

h = (3,500,000) A1 (5)

Question Answer Mark

Number
j = 0.922 x (250,000) M1
5 (a)(ii)
= (230,500) A1

k = 0.613 X 900,000 M1

= 551,700 A1 (4)

Question Answer Mark

Number
5 (b) Number of months = 12 x 150,000 / 900,000 M1

=2

Payback period = 5 years 2 months A1 A1

(3)

Total for Question 5 – 12 marks

8 ASE3003
April 2016
Question Answer Mark
Number
Rate = £4,900 / £35,000 M1
6 (a)
= £0.14 A1 (2)

Question Answer Mark

Number
Received by unsecured creditors

6 (b) = 0.14 x £275,000 M1

= £38,500

Value of assets = £44,100 + £2,400 + £38,500 M1

= £85,000 A1 (3)

Question Answer Mark

Number
Owed to unsecured creditor = £349.65 / 0.35 M1
6 (c)(i)
= £999 A1 (2)

Question Answer Mark

Number
Let the amount owed to Jacqui as a secured
6 (c)(ii) creditor be S M1

S + 0.35 x (18,800 - S) = 11,000 M1

Owed to Jacqui as a secured creditor = £6,800 A1 (3)

Question Answer Mark

Number
As an unsecured creditor, amount Jacqui is paid
6 (d) = 0.09 x £25,000 M1

= £2,250

In total, amount Jacqui is paid = £7,750 + £2,250

= £10,000 A1 (2)

Total for Question 6 – 12 marks

9 ASE3003
April 2016
Question Answer Mark
Number
£36,000 represents (100% - 3 x 20%) M1
7 (a)
= 40%

Original cost = £36,000 / 40% M1

= £90,000 A1 (3)

Question Answer Mark

Number
Depreciation in year 4 = 65% x £36,000 M1
7 (b)(i)
= £23,400 A1 (2)

Question Answer Mark

Number
Scrap value at the end of year 5
7 (b)(ii)
= (1 - 0.65)2 x £36,000 M1

= £4,410 A1 (2)

Question Answer Mark

Number
All figures in pounds (£) M1
7 (c) (Annual
Year Annual Cumulative Book value at yrs 1-3)
depreciation depreciation end of the year
M1
0 90,000 (Annual
1 18,000 18,000 72,000 yrs 4-5)
2 18,000 36,000 54,000
3 18,000 54,000 36,000 M1 (Cd)
4 23,400 77,400 12,600 M1 (Bv)
5 8,190 85,590 4,410 A1 (all)
(5)

Total for Question 7 – 12 marks

10 ASE3003
April 2016
Question Answer Mark
Number
2013: Chain base relative = 260 / 200 M1
8 (a) Chain base index = 100 x 260 / 200 (either year)

= 130 A1

2014: Chain base relative = 247 / 260

Chain base index = 100 x 247 / 260

= 95 A1 (3)

Question Answer Mark

Number
Quantity relative for 2014 with base year 2012
8 (b) = 247 / 200 M1

= 1.235 (accept 1.24) A1 (2)

Question Answer Mark

Number
2013: Index = 90 A1

8 (c) 2014: Index = 90 x 110 / 100 M1

= 99 A1 (3)

Question Answer Mark

Number
8 (d) Price relative = 1.2 A1 (1)

Question Answer Mark

Number
Let the number of items sold in 2011 be Q
8 (e)(i)
Total number of items sold = 10,500 + Q M1

Income from sales in 2010 = 10,500 x £40

= £420,000

Income from sales in 2011 = Q x £36 M1

Average price for the two years together

= £38.10 = £420,000 + £36 x Q M1

10,500 + Q

Number of items sold in 2011 (Q) = 9,500 A1 (4)

11 ASE3003
April 2016
Question Answer Mark
Number
Average selling price in 2012 = £36 x 1.2 M1
8 (e)(ii)
= £43.20 A1 (2)

Total for Question 8 – 15 marks

TOTAL FOR PAPER - 100 MARKS

12 ASE3003
April 2016