Business 7115 · O Level · Costs, scale of production and break-even analysis
Costs, scale of production and break-even analysis — practice question
FlyAway operates as an airline company. It belongs to the tertiary sector. For business customers in country J, it provides low-price flights. On board, customers must pay extra for luggage and food. Competition in this market is intense. The Marketing manager understands that better customer service matters. Bookings and advertising are handled through FlyAway’s ticket shops and its website. The Marketing manager is unsure whether the ticket shops should be shut and e-commerce used on its own.
(a)[2]
What does ‘tertiary sector’ mean?
(b)[2]
Calculate the revenue earned by an average flight on route 2.
(c)[4]
Identify and explain two ways in which break-even information could be useful to FlyAway.
Way 1:
Explanation:
Way 2:
Explanation:
(d)[6]
Identify and explain two ways in which FlyAway could raise customer service standards.
Way 1:
Explanation:
Way 2:
Explanation:
(e)[6]
Should FlyAway rely only on e-commerce? Support your answer with reasons.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Business or industry that provides services” …