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

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

(a)[8]

Identify and explain two roles performed by the Operations manager at GT.

(b)[12]

Consider these three methods that GT could use to reduce the average cost of products. Recommend the best option to choose. Justify your answer. Change to a cheaper supplier of raw materials. Change the design of products so that they need fewer components. Change from batch production to flow production. Recommendation to make:

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Planning production, for example setting a target for a 10% rise in toy production output” …

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