Business 9609 · AS & A Level · Location and scale

Location and scale — practice question

(a)

Consult the Appendix. Calculate for location Y:

  • monthly break-even customer count [3]
  • maximum-capacity monthly profit [3]
  • safety margin [2]
(b)[12]

Use your findings from 2(a), the Appendix and the other information provided. Recommend to HH’s directors whether location X or location Y should be chosen for the new hotel.

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