Business 0450 · IGCSE · Costs, scale of production and break-even analysis
Costs, scale of production and break-even analysis — practice question
FlyAway is an airline company. It operates in the tertiary sector. It sells low-price flights for business customers in country J. Passengers must pay extra for luggage and food during the flight. This is a highly competitive market. The Marketing manager knows that better customer service is important. Bookings and advertising are carried out through FlyAway’s ticket shops and its website. The Marketing manager is unsure whether to shut the ticket shops and rely only on e-commerce.
(a)[2]
What does the term ‘tertiary sector’ mean?
(b)[2]
Calculate the revenue from an average flight on route 2.
(c)[4]
Identify and explain two ways break-even information may assist FlyAway.
(d)[6]
Identify and explain two ways in which FlyAway might improve customer service.
(e)[6]
Do you think FlyAway should rely only on e-commerce? 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: “A business or industry that provides services” …