Written by RA10 from a question-by-question analysis of the AQA 7132 papers 2020-2025 and the v2.0 specification. This is not an official AQA paper and does not contain real exam questions.
Atlas Bricks plc makes clay bricks for house builders. Bricks are heavy and expensive to transport, so Atlas has six brickworks spread across the UK. Each works contains kilns that must run continuously; once a kiln is switched off it is costly and slow to restart.
Demand for bricks depends on house building, which has fallen as higher interest rates have made mortgages more expensive. Atlas is now producing well below capacity. It is considering 'mothballing' (temporarily closing) its oldest works in Lancashire.
A smaller rival, Hartley Bricks Ltd, has offered itself for sale. Hartley has two modern, energy-efficient works and specialises in high-value handmade bricks for restoration projects.
| 2023 | 2024 | |
|---|---|---|
| Revenue (£m) | 186.0 | 171.0 |
| Operating profit (£m) | 22.3 | 13.7 |
| Capacity (million bricks) | 420 | 420 |
| Output (million bricks) | 378 | 315 |
| 2022 | 2023 | 2024 | |
|---|---|---|---|
| Bank of England base rate (year end, %) | 3.5 | 5.25 | 4.75 |
| UK new homes started (000s) | 190 | 164 | 149 |
| Asking price | £48m |
|---|---|
| Operating profit 2024 | £4.1m |
| Capacity utilisation 2024 | 92% |
| Energy use per 1 000 bricks | 35% below industry average |
Kindred Care is a social enterprise that runs eight residential care homes for older people in Yorkshire. Its mission is 'care with dignity, run by the community'. Any surplus is reinvested in its homes and staff.
Kindred Care's largest costs are staff wages. Recruiting and keeping care workers is difficult: the work is demanding and pay in the sector is low. Kindred Care has introduced a talent development programme with paid qualifications, mentoring and a clear path to senior roles.
One home, Elm House, is in an old building that needs £1.2m of repairs. The board is considering closing it and moving its 28 residents to other Kindred Care homes. Residents' families, staff, the local council (which pays for many places) and the local newspaper all have strong views.
| 2022 | 2023 | 2024 | |
|---|---|---|---|
| Labour turnover (%) | 34 | 29 | 22 |
| Agency staff costs (£000) | 940 | 780 | 510 |
| Care workers holding a qualification (%) | 41 | 55 | 68 |
Thread & Co is an online fashion retailer selling affordable clothes for 18-30 year olds. It sells only through its website and app. It uses dynamic pricing, changing prices several times a day depending on demand, competitors' prices and stock levels.
Much of its promotion relies on social media and viral marketing, such as videos created by influencers. One video in 2024 was viewed 14 million times and led to a record week of sales.
Returns are a major problem: customers often order several sizes and send most back. Processing returns is costly and many returned items cannot be resold at full price.
| Revenue (before returns) | £28m |
|---|---|
| Value of items returned | £7.7m |
| UK online fashion market, 18-30 segment (sales value) | £1,650m |
| Thread & Co net revenue in this segment | £28m |