Cambridge IGCSE Business Studies 0450/22 is the May/June 2026 Paper 2 (Case Study), variant 2. It lasts 1 hour 30 minutes, is worth 80 marks and is sat by every 0450 candidate. You answer all four questions on one case study printed in a separate insert. Each question has an 8-mark explanation part and a 12-mark decision part, so the four decisions carry 48 of the 80 marks. This guide goes through the paper question by question and shows what the official mark scheme gave marks for. The paper, insert and mark scheme are free on the Tutopiya Learning Portal.

For an overview of both 0450 papers from this series, see IGCSE Business Studies 0450 May/June 2026 past papers: what came up and how it was marked.

0450/22 at a glance

The case: KE (Kitchen Equipment) is a public limited company with 10 000 employees. It makes 20 million low-priced cooking pots a year in one factory and sells them in its home country, in a very competitive market, using simple packaging to keep costs down. The factory is at full output, so KE plans a second one, which should lift sales from $90 million to $180 million a year. It also plans lean production in both factories and a new cooking pot. The insert has three appendices: data on two factory locations, a short email from the managing director about two ways to become more ethical, and price, cost and forecast sales figures for two possible new pots.

Question	Topic	Marks	Marking
1(a)	Four ways to measure the size of KE	8	Points
1(b)	Which primary research method: interviews, focus groups or questionnaires	12	Levels
2(a)	Four roles of packaging	8	Points
2(b)	Location A or location B for the second factory (Appendix 1)	12	Levels
3(a)	Two advantages of introducing lean production	8	Points
3(b)	Product A or product B, with calculations (Appendix 3)	12	Levels
4(a)	Two reasons why training employees matters to KE	8	Points
4(b)	Ethical suppliers or fair wages as the best way to become ethical (Appendix 2)	12	Levels
	Total	80

How the 12-mark part (b) questions are marked

All four part (b) questions share the same three levels, so learn them once:

• Level 1 (1–4 marks): limited knowledge, the options outlined with little explanation, and a simple judgement. Outlining every option in KE’s context reaches the top of this level.
• Level 2 (5–8 marks): sound knowledge with the right terminology, at least one option discussed in detail, and a judgement with some justification. Detailed discussion applied to KE reaches the top of Level 2 (in 1(b), of two or more methods).
• Level 3 (9–12 marks): detailed discussion of both options (two or more methods in 1(b)) in context and a well-justified recommendation. The top marks need every option discussed and a reason why the rejected option or options were less suitable.

Mark a part (b) answer by deciding the level first, then where in the band it sits. The scheme lists advantages and disadvantages of each option as indicative content. You don’t need all of them, but each point should be developed into a consequence for KE (for example cost, sales, output or reputation).

Question-by-question walkthrough

Question 1: size and market research (20 marks)

• 1(a) Four ways to measure the size of KE (8 marks): 1 mark per way and 1 more for applying it to KE. The four accepted measures were the number of employees (10 000), the value of sales ($90 million a year), capital employed (KE is a plc) and volume of output (20 million pots a year). Number of factories, profit, type of business, amount of machinery and value of shares were not accepted. Each method plus one KE figure is enough for 2 marks.
• 1(b) Interviews, focus groups or questionnaires (12 marks, levels): the only part (b) with three options, and the scheme notes that answers should stay on research methods. Interviews let the interviewer explain questions and gather detailed views on cooking pots, but risk interviewer bias and are slow and expensive. Focus groups give detailed qualitative data and show why people hold their opinions, and are cheaper than individual interviews, but can be dominated by a few strong voices and give no numerical data. Questionnaires are quicker and cheaper and can be collated automatically online, but questions may be misunderstood and a random sample may not reach KE’s customers or the people who cook. The scheme gave a justified recommendation for each method, and an advantage of one method restated as a disadvantage of another was credited only once.

Question 2: packaging and factory location (20 marks)

• 2(a) Four roles of packaging (8 marks): 1 mark per role and 1 for explaining it. There were no application marks here. Accepted roles: protecting the product from damage, reinforcing brand image (colour, logo), catching the customer’s eye, carrying information such as instructions or legal details, making the product easy to open and use, fitting the product, and making it easier to transport. “Added value” on its own was not credited.
• 2(b) Location A or location B (12 marks, levels): location A had cheaper land ($100 000 against $300 000), higher local unemployment (10% against 5%) and raw material suppliers 20 km away, but it was 80 km from the main market and had power cuts 25% of the time. Location B was 10 km from the market and never had power cuts, but its land cost three times as much and suppliers were 100 km away. The scheme developed each fact: higher unemployment could make recruiting easier and wages lower; distance to suppliers raises transport costs every time, not just once, and suits lean production badly; power cuts interrupt output and orders. Assuming KE has plenty of money because it is a plc was not accepted. Either location could reach Level 3 if the other was shown to be less suitable.

Question 3: lean production and the new product (20 marks)

• 3(a) Two advantages of lean production (8 marks): 1 mark per advantage and up to 3 for explaining it, one of which must be applied to KE. Accepted advantages: less inventory and storage (with just-in-time), faster production (with kaizen and a better layout), fewer defects and less waste, staff suggesting small improvements, better use of equipment, removing unnecessary processes, and better health and safety. The first mark must be a clear benefit of lean production, and lower costs or higher motivation could only be credited once as development.
• 3(b) Product A or product B, with calculations (12 marks, levels): both had $30 000 extra fixed costs a month. The scheme’s figures were:

Monthly figure	Product A	Product B
Price per pot	$2	$6
Variable cost per pot	$0.50	$3
Forecast sales	40 000	15 000
Contribution per pot	$1.50	$3
Break-even output	20 000	10 000
Margin of safety	20 000	5000
Revenue	$80 000	$90 000
Total costs	$50 000	$75 000
Profit	$30 000	$15 000
Gross profit margin	75%	50%
Profit margin	37.5%	16.67% (17%)

The scheme grades the figures: contribution, total variable cost, total cost and revenue are Level 1 points, while break-even, margin of safety, gross profit, profit and the two margins are Level 2. For Level 3 you need a Level 2 figure for both products and a decision that shows what the figures mean. A decision that only compares numbers stays in Level 2. Label each figure (break-even output, profit per month), because the scheme asks for accurate labels or working that shows where the number came from. Product A was justified by its larger profit and margin of safety; product B by its lower break-even output, which may be easier to reach.

Question 4: training and ethics (20 marks)

• 4(a) Two reasons why training matters to KE (8 marks): the same pattern as 3(a): 1 mark per reason and up to 3 for explaining it, one in KE’s context. Accepted reasons: higher motivation, a more flexible workforce that can cover absences, higher productivity and lower unit costs, better product quality, being able to use new technology, fewer mistakes, and a more skilled workforce. Higher sales only counted if the link was explained, for example more output leading to more sales. Context could include the planned lean production and KE paying the minimum wage.
• 4(b) Ethical suppliers or fair wages (12 marks, levels): ethical suppliers could reduce pressure-group protests and attract customers through a better reputation, but may cost more than KE’s current low-cost suppliers, squeezing margins on low-priced pots, and may limit the materials available. Fair wages could raise motivation and quality, cut labour turnover and recruitment costs among 10 000 staff, and give employees more income, but raise wage costs and possibly prices, which could cut demand. The scheme also accepted that ethical suppliers may be harder to find or may supply higher or lower quality. Fair wages does not mean paying everyone the same, and Level 3 needs a real decision, not a repeat of earlier points.

Where the marks are on 0450/22

Part	Marking	Marks
1(a), 2(a), 3(a), 4(a)	Points: a mark per point plus development	32
1(b), 2(b), 3(b), 4(b)	Levels of response, 1–4, 5–8, 9–12	48
Total		80

• Application marks in part (a) total 8: 4 in 1(a) and 2 each in 3(a) and 4(a) (one per advantage or reason). 2(a) has none.
• Three of the four decisions turn on the appendices. 2(b), 3(b) and 4(b) use Appendices 1, 3 and 2; only 1(b) relies on the main text alone.
• 3(b) is the one place where arithmetic gates a level. Without labelled figures for both products, the answer cannot reach Level 3.

How to self-mark 0450/22 with the mark scheme

1. Mark part (a) as points. Tick each way, role, advantage or reason, then its development marks, and stop at the cap: 1 extra mark per point in 1(a) and 2(a), 3 extra in 3(a) and 4(a).
2. Check your application in part (a). In 1(a), every development mark must use a KE fact; in 3(a) and 4(a), at least one of the three development marks must. The scheme lists the case details that count.
3. Decide the level for each part (b) first. Ask: did I discuss every option in detail, in KE’s context? Did I make a decision and say why the other option lost? Only then choose the mark within the band.
4. Re-check 3(b) against the scheme’s table. Confirm your contribution, break-even and profit for both products, and that each is labelled.
5. Strike out mirror points. An advantage of one option restated as a disadvantage of the other only counts once.
6. Log each lost mark as missing knowledge, missing context, missing calculation or a weak decision, and practise that skill next.

Sit 0450/22 as a timed mock

The paper allows 90 minutes for 80 marks. A workable plan:

Block	Marks	Time
Read the insert and annotate the appendices	–	8 minutes
Question 1	20	19 minutes
Question 2	20	19 minutes
Question 3 (with the calculations)	20	21 minutes
Question 4	20	19 minutes
Check labels, figures and each recommendation	–	4 minutes

In each question, give part (a) about 7 minutes and part (b) the rest. For 3(b), do the calculations for both products before you start writing.

Other May/June 2026 0450 papers

• 0450 Paper 12 (Short Answer and Data Response)

Practise and download

• Download 0450/22, the insert and the mark scheme on the Learning Portal →
• All 0450 May/June 2026 papers: overview and marking patterns
• Try a free IGCSE Business Studies quiz

Need help with a 0450 topic? Book a free trial lesson with an IGCSE Business Studies tutor →

Frequently asked questions

What was the 0450 Paper 22 case study in May/June 2026? +

KE (Kitchen Equipment), a public limited company with 10 000 employees that makes low-priced cooking pots for a very competitive home market. Its only factory is at full capacity, so it plans a second factory, lean production and a new cooking pot, and it wants to become more ethical.

How many marks is 0450/22 and how long is it? +

It is out of 80 marks and lasts 1 hour 30 minutes. There are four compulsory questions, each with an 8-mark part (a) and a 12-mark part (b).

What were the answers to the product A and product B calculations? +

Product A: contribution $1.50, break-even 20 000 pots, margin of safety 20 000, profit $30 000 a month. Product B: contribution $3, break-even 10 000, margin of safety 5000, profit $15 000 a month. The mark scheme accepted a recommendation for either product if it was justified.

How are the 12-mark questions on 0450/22 marked? +

With three levels: 1 to 4, 5 to 8 and 9 to 12. Level 3 needs detailed discussion of the options in context and a well-justified decision. The top of Level 3 goes to answers that also explain why the other option or options were rejected.

Is there a right answer to the 0450/22 factory location question? +

No. The mark scheme gives a valid case for each. Location A had cheaper land, higher unemployment and nearby suppliers; location B was close to the main market and never had power cuts. The marks are for the quality of the justification.

Where can I download 0450/22 May/June 2026, the insert and the mark scheme? +

All three are free to download and print on the Tutopiya Learning Portal, on the Cambridge IGCSE Business Studies 0450 past papers page.

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