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 benefits that CC workers could gain from trade union membership.

(b)[12]

Illustrate what happens to the break-even point for each of the following options by drawing on each chart on the opposite page: • Option 1 - Increase the price of the cooker to $60 • Option 2 - Decrease the variable cost of the cooker to $10 Assess these two options for making the cooker more profitable. Recommend which option the directors should choose. 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: Provides strength through numbers/collective bargaining, making demands more likely to be met

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