(a)[3]
Identify three factors that VW says are causing the fall in expected profits.
(b)
- Explain how a fixed cost differs from a variable cost. [2]
- Consider which cost category best fits the wages VW pays its employees. [4]
(c)[5]
VW said that it wanted to ‘compete more on price’. Is this an appropriate response to the factors identified in (a)?
(d)[6]
Discuss whether it is reasonable to conclude, from the comparison with Argentina and the Czech Republic, that costs are too high in VW’s German factories.