Business 0450 · IGCSE · Costs, scale of production and break-even analysis

Costs, scale of production and break-even analysis — practice question

(a)[8]

Explain two reasons why it is important for JJ to set business objectives.

(b)[12]

Using Appendix 1 and the other information, assess the two new products JJ could make. Which product should JJ select? Support your answer with break-even calculations. • Product A • Product B

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: A clear target/aim to direct the business and prevent a loss of focus

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