Cambridge AS & A Level Business 9609/32 is the May/June 2026 Paper 3 (Business Decision-Making), variant 2. It is an A Level component that lasts 1 hour 45 minutes and is worth 60 marks. Every question is based on one case study, CC, a car retailer, printed in a separate insert. You answer all five questions: two 8-mark analysis questions, three short calculations worth 8 marks together, and three 12-mark evaluation questions that make up 36 of the 60 marks. This guide goes through every question and shows what the official mark scheme gave marks for. The paper and its mark scheme are free on the Tutopiya Learning Portal.

For an overview of all four 9609 papers from this series, see A Level Business 9609 May/June 2026 past papers: what came up and how it was marked.

9609/32 at a glance

The rubric is: answer all questions, on the question paper.

Question	Topic	Data used	Marks
1	Analyse two factors that may have determined the site for CC’s relocated showroom	Case	8
2	Analyse two difficulties CC may have when valuing inventory	Case, Tables 1.2 and 1.3	8
3(a)	Calculate the showroom sales manager’s span of control	Figure 1.2	1
3(b)	Calculate the ARR for the proposed ERP programme	Table 1.1	3
3(c)	Evaluate whether the directors should delayer CC’s structure	Case	12
4(a)	Calculate the change in inventory turnover, 2024 to 2025	Table 1.2	4
4(b)	Evaluate the importance for CC of forecasting sales	Case	12
5	Evaluate how far economic factors may affect CC’s decision making	Case	12
	Total		60

The CC case in brief

From the case material the mark scheme draws on, CC sells petrol and electric cars from a showroom it moved to a site on a busy road, 9 km from city A (population 0.5 million) and 21 km from city B (population 0.2 million). The site holds 70 cars, with parking for 30 more, offices and an area for internet sales, and two competitor showrooms are within 5 km. CC bought the land in 2024, and the showroom investment was financed by a bank loan. CC operates in country W, where GDP has grown strongly over five years and inflation is high. Its mechanics are well paid because of a skills shortage. The directors were weighing up making one showroom sales manager and one internet sales manager redundant and buying an ERP programme costing $125 000, with a four-year life, no residual value and a payback period of three years.

Question-by-question walkthrough

Question 1: factors in choosing the showroom site (8 marks)

Location factors credited included fixed costs such as rent, labour and transport costs, distance from the market, passing trade, government grants, external economies of scale, investment appraisal results, infrastructure and road access, regulations, closeness to competitors, and the owners’ preferences.

Application had to use the case, not repeat it: the busy road bringing passing trade and visibility, room for test drives, the 70-car capacity, the distances to cities A and B and their populations, and the two nearby competitors. Analysis examples in the mark scheme: lower fixed costs outside the city centre spread over each car sold, allowing lower prices, more sales and higher profit; and a site that keeps CC 9 km from city A while bringing it nearer city B, widening its potential market and raising car sales.

If you give more than two factors, only the best two count. A single factor analysed in depth can still reach 3 analysis marks.

Question 2: difficulties valuing inventory (8 marks)

Difficulties credited included market price changes, inaccurate inventory counts, depreciation, choosing a valuation method, inflation, damage, theft or obsolescence, tax and reporting rules, and new models being launched. Application could use the case data: inventory rising from $1.25 million in 2022 to $2.5 million in 2025 (Table 1.2), the value of current inventory by model, totalling $2 310 000 at cost (Table 1.3), petrol and electric cars losing value at different rates, and high inflation in country W.

Developed analysis in the mark scheme included: cars held in stock losing value as they age, reducing the price CC can charge and its profit; new models making older ones obsolete, possibly pushing their value below cost; market prices falling after purchase, turning a planned profit into a loss when inventory is valued at net realisable value; and mis-valued inventory leading to decisions based on inaccurate accounts. The scheme accepts, but does not require, methods such as FIFO.

Question 3: delayering and the ERP programme (16 marks)

• 3(a) Span of control for the showroom sales manager (1 mark): 11, the number of employees directly accountable to that manager in Figure 1.2.
• 3(b) ARR for the ERP programme (3 marks): the programme’s returns over four years minus its $125 000 cost give a total profit of $60 000, so average annual profit is $60 000 ÷ 4 = $15 000. Average investment is ($125 000 + $0) ÷ 2 = $62 500, and ARR = $15 000 ÷ $62 500 × 100 = 24%. One mark was available for the formula, the $60 000 or the $62 500; 2 for reaching $15 000 or setting up $15 000 ÷ $62 500; and 3 for 24%. Part marks were listed for wrong routes: dividing $15 000 by the full $125 000 (12%) earned 2.
• 3(c) Evaluate whether the directors should delayer CC’s structure (12 marks): knowledge covered removing a management layer, wider spans of control, faster communication and decisions, and the risks of redundancies, heavier workloads and lost experience. Application used the two managers, the spans in Figure 1.2 (5 for the managing director, 2 for each director, 11 and 6 for the two sales managers), and the ERP data, including your answers to 3(a) and 3(b) on the own figure rule. Arguments for: lower ongoing labour costs, a shorter chain of command, more delegation and motivation, and greater flexibility. Arguments against: redundancy payments and the ERP’s upfront cost straining cash flow, fear among remaining staff, lost experience, and directors with wider spans and no clear lines of responsibility. The mark scheme’s Level 3 example argued that an ERP programme can take over planning and administration but not the customer contact that matters in car retailing, so the decision depends on whether the sales teams can absorb the managers’ roles and on CC’s wider objectives.

Question 4: inventory turnover and sales forecasting (16 marks)

• 4(a) Change in inventory turnover between 2024 and 2025 (4 marks): inventory turnover = cost of sales ÷ average inventory. In 2024, 15 500 ÷ 2000 = 7.75; in 2025, 20 000 ÷ 2500 = 8. The change is 8 − 7.75 = 0.25, and a 3.23% increase was also accepted for full marks. The formula alone earned 1, one correct year 2, and both years 3. An answer of 0.25% earned 3. Working in days instead (47.1 days falling to 45.6, a fall of 1.5 days) could earn up to 3.
• 4(b) Evaluate the importance for CC of forecasting sales (12 marks): knowledge covered methods such as time series and moving averages or the Delphi method, and the uses of forecasts: planning inventory, labour, cash flow and budgets, pricing, peak and off-peak periods against capacity, and sales targets. Application included the nearby competitors, new model launches, GDP growth, growth in electric models, high inflation, the 70-car capacity and the proposed manager redundancies. Analysis credited managing seasonal cash flow, holding less inventory while still meeting demand, and recruiting mechanics in time. Limitations: too little sales history at the new showroom to forecast reliably, and an inaccurate forecast leading to overstocking, higher costs and more depreciation. The Level 3 example judged forecasting very important in a business with seasonal demand and frequent model updates, but noted that most past sales data relates to the old location and that forecasts must be revised often in a fast-changing car market.

Question 5: economic factors and CC’s decisions (12 marks)

Knowledge covered unemployment, the rate of inflation, economic growth, and government monetary, fiscal, supply-side and exchange rate policies. Application linked them to the case: GDP growth and demand for cars, the bank loan and the ERP proposal and interest rates, cleaners on the minimum wage and mechanics’ pay, high inflation, and the price of petrol.

This question was about decisions, not just impacts. In the mark scheme, limited analysis shows how an economic factor affects CC; developed analysis links that effect to a decision CC would make. Examples: rising incomes from growth could lead CC to stock more expensive electric models, or to discount petrol models to move inventory; high inflation driving wage demands and supplier prices could lead CC to cut staff or negotiate harder with manufacturers; and a falling exchange rate raising the cost of imported cars could lead CC to hold less inventory. Level 2 and Level 3 evaluation required a judgement linking economic factors to CC’s decision making; a judgement about their effect on CC alone stayed at Level 1. The Level 3 example also weighed economic factors against other external influences, such as government policy on the switch to electric vehicles.

How the essay and analysis marks work

The 8-mark questions (1 and 2) give 2 marks for knowledge, 2 for application and 4 for analysis. Application earns 1 mark for using the case once and 2 for using it twice, with at most one application mark per factor. Limited analysis shows one link in the chain of reasoning (1 to 2 marks); developed analysis shows two or more links (3 to 4).

The 12-mark questions (3(c), 4(b) and 5) give 2 marks each for knowledge, application and analysis, and 6 for evaluation:

• 5 to 6 marks: a supported judgement, or reasonable evaluative comment, in the context of CC.
• 3 to 4 marks: a supported judgement or reasonable evaluative comment without that context.
• 1 to 2 marks: a limited judgement or a weak attempt at evaluative comment. A balanced but undeveloped view earns 1.

“However” statements that give an alternative view after a point of analysis count as evaluation, and judgements can appear anywhere in the answer.

Where the marks are on 9609/32

Split by assessment objective and calculation:

Component of the mark	Questions 1 and 2	Questions 3(c), 4(b) and 5	Calculations 3(a), 3(b), 4(a)	Total
AO1 Knowledge and understanding	4	6	–	10
AO2 Application	4	6	–	10
AO3 Analysis	8	6	–	14
AO4 Evaluation	–	18	–	18
Calculations	–	–	8	8
Total	16	36	8	60

• Evaluation is the single biggest objective, at 18 of the 60 marks, all in the three 12-mark questions.
• Analysis is worth 14 marks, and more than half of that is in Questions 1 and 2, where the number of links in your chain decides the level.
• The calculations are quick marks, and two of them feed 3(c) through the own figure rule.

How to self-mark 9609/32 with the mark scheme

1. Rework the three calculations first and award method marks exactly as listed. Check 3(c) uses your own 3(a) and 3(b) answers correctly.
2. For Questions 1 and 2, keep only your best two factors or difficulties. Count application marks (one per point, used rather than copied from the case).
3. Count the links in each chain of analysis. One link is limited (1 to 2 marks); two or more is developed (3 to 4).
4. For each 12-mark answer, score knowledge, application and analysis out of 2 each, then place your evaluation in a level.
5. Test your judgement against the context. Does it use a specific detail about CC, such as the ERP programme, the 70-car showroom or inflation in country W? If not, it cannot reach 5 or 6.
6. On Question 5, check you wrote about decisions. If your judgement is only about the effect of economic factors on CC, cap evaluation at Level 1.
7. Log each lost mark by objective so you know whether to practise knowledge, application, analysis chains or judgement.

Sit 9609/32 as a timed mock

The paper allows 105 minutes for 60 marks, about one and three-quarter minutes per mark. A workable plan:

Block	Marks	Time
Read the insert and mark the figures and tables	–	12 minutes
Question 1	8	12 minutes
Question 2	8	12 minutes
Questions 3(a) and 3(b)	4	6 minutes
Question 3(c)	12	18 minutes
Question 4(a)	4	5 minutes
Question 4(b)	12	18 minutes
Question 5	12	18 minutes
Check calculations and judgements	–	4 minutes

Do the calculations as soon as you reach them, even if you write the essays in another order: 3(c) depends on your 3(a) and 3(b) answers.

Other May/June 2026 9609 papers

• 9609 Paper 12 (Business Concepts 1)
• 9609 Paper 22 (Business Concepts 2)
• 9609 Paper 42 (Business Strategy)

Practise and download

• Download 9609/32 and its mark scheme on the Learning Portal →
• All 9609 May/June 2026 papers: overview and marking patterns
• Try a free A Level Business quiz

Need help with a 9609 topic? Book a free trial lesson with an A Level Business tutor →

Frequently asked questions

What was the case study on 9609 Paper 32 May/June 2026? +

CC, a car retailer that had relocated its showroom to a site on a busy road and sells petrol and electric models. Its directors were considering delayering by making two sales managers redundant and buying an Enterprise Resource Planning (ERP) programme to take over some of their work.

How many marks is 9609/32 and how long is it? +

It is out of 60 marks and lasts 1 hour 45 minutes. All eight question parts are compulsory and answered on the question paper, with the case study in a separate insert. Three 12-mark evaluation questions carry 36 of the 60 marks.

What was the ARR answer on 9609/32 Question 3(b)? +

24%. The ERP programme's total profit over its four-year life was $60 000, an average of $15 000 a year. Average investment was ($125 000 + $0) ÷ 2 = $62 500, and $15 000 ÷ $62 500 × 100 = 24%.

What was the change in inventory turnover on 9609/32 Question 4(a)? +

An increase of 0.25. Inventory turnover rose from 15 500 ÷ 2000 = 7.75 in 2024 to 20 000 ÷ 2500 = 8 in 2025. A percentage change of 3.23% also earned full marks, while 0.25% earned 3 of the 4 marks.

What was the span of control on 9609/32 Question 3(a)? +

11. The showroom sales manager had 11 employees directly accountable to them in the organisation chart in Figure 1.2. The question was worth 1 mark.

Where can I download 9609/32 May/June 2026 and its mark scheme? +

Both are free to download and print on the Tutopiya Learning Portal, on the Cambridge AS & A Level Business 9609 past papers page.

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