Business 7115 · O Level · Costs, scale of production and break-even analysis

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

(a)[8]

Identify and explain two legal controls that could influence Peter when he is recruiting and employing staff.

(b(i))[1]

Look at Appendix 2. Finish the break-even chart below by adding the Total Revenue line.

(b(ii))[1]

State the break-even number of customers per day.

(b(iii))[10]

Consider these two methods Peter could use to try to raise profit. Recommend which method he should select. Justify your answer. Increase prices. Reduce variable costs. Recommendation.

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