I am astonished at some of the posts here. As a CPL, YOU are the PIC for this flight and it is YOU who decides and is responsible for that flight. The flight tester can make suggestions as to what he wants done but YOU are responsible for the flight and staying inside the Rules.
On my CPL preflight brief I informed GL (you wanted initials) what I would and would not be doing. I would not have the mixture pulled and I would simulate changing tanks, checking mags etc and I would not break 500' AGL during the FLWOP (and no, I did not simulate Carb Heat). If the engine was running with the settings before the throttle was closed then I didn't want to change anything when I initiated the go around at 550' AGL. Read what the Regs (sorry, now they are Rules) say about flying below 500'. The low flying area is different because the Rules say it is.
If you are unsure about being able to make the field/landing area by the 1,000' point then you need more training. After all isn't that why we practised all those Full Glide Approaches onto an airfield.
If you have a private strip to land on then you can take it all the way down. This is especailly good for the confidence of a PPL and it is legal. Having them enter Club competitions is another way to better simulate a FLWOP as it does add the extra pressure of hitting the spot.