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

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

(a)[8]

With Appendix 2 and other information, explain two benefits and two limitations for Santhosh from break-even analysis.

(b)[12]

Using Appendix 3 and other information, consider how the recession could affect RF’s forecast sales and the supply of possible employees. Which is likely to have the greatest effect on RF? Justify your answer.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: It sets a target output needed to reach break-even

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