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

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

(a)[8]

Explain two diseconomies of scale that CC could face as it expands.

(b)[12]

Use the information about the two managers shown in Appendix 2. Which person should be appointed as the Operations Manager for the NM factory? 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: Poor communication - messages have to pass through more levels of hierarchy - distortion becomes more likely

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