The questions involve you interpreting the model output within your answers. In this case, the model output consists of a complete profit and loss account.

• Turnover (£)
• Cost of Sales (£)
• Gross Profit (£)
• Operating Expenses (£)
• Operating Profit (Net Profit) (£)
• Non-operating income (£)
• Interest Payable (£)
• Profit on Ordinary Activities Before Taxation (£)
• Corporation Tax (£)
• Profit after Tax (£)
• Dividends (£)
• Retained Profit Carried Forward (£)

Your discussion should focus on using the simulation to support the theoretical expectations of your discussion. For instance, you could argue that an increase in price will have a positive impact throughout the profit and loss account. This might include; an increase in turnover, gross profit, net profit and retained profit. You can test this expectation using the simulation.

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