Business 9609 · AS & A Level · Costs

Costs — practice question

Part 1[4]

Explain two possible limitations of SH’s use of break-even analysis.

Worked solution & mark scheme

This 4-mark question has a full step-by-step worked solution and mark scheme. One marking point: It assumes a fixed selling price: break-even analysis takes every room as being sold for the same price, which is not realistic for a seaside hotel because of peak and off-peak pricing.

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  • Step-by-step worked solution
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