Business 9609 · AS & A Level · Operations strategy

Operations strategy — practice question

(a)[6]

Refer to Table 1 and the information in lines 48–53. Calculate the likely effect on SC’s profits of deciding to outsource ski clothing production to PSK.

(b)[12]

Discuss whether SC should outsource production of ski clothing. Use your result from 2(a) and other relevant information to support your answer.

Worked solution & mark scheme

This 18-mark question has a full step-by-step worked solution and mark scheme. One marking point: State the relevant figures, for example total cost per unit $42 or direct cost per unit $22, selling price per unit $84, allocated fixed costs $300,000, or otherwise present the correct relevant data

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI