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 four ways in which the break-even chart in Appendix 3 could assist SSE.

(b)[12]

Consider the likely impact of each of these three changes on SSE. Which change do you think will have the largest effect on SSE's profit? Support your answer. • A depreciation in the currency of country Z • An import tariff introduced on sports helmets imported into country Z • Quotas introduced on sports helmets in countries where SSE sells its products

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