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    Burnett manufactures sports shoes and plans to increase production at its factory. This could lead to more than one economy of scale and allow Burnett to export shoes for the first time. The document contains questions about drawing total cost lines on a chart, calculating profit from producing 20,000 pairs of shoes, identifying two economies of scale from increasing production, and explaining how break-even charts can be useful to the Operations Director.

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    Burnett manufactures sports shoes and plans to increase production at its factory. This could lead to more than one economy of scale and allow Burnett to export shoes for the first time. The document contains questions about drawing total cost lines on a chart, calculating profit from producing 20,000 pairs of shoes, identifying two economies of scale from increasing production, and explaining how break-even charts can be useful to the Operations Director.

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    © All Rights Reserved
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    11 views2 pages

    002

    Uploaded by

    Suhaan
    Burnett manufactures sports shoes and plans to increase production at its factory. This could lead to more than one economy of scale and allow Burnett to export shoes for the first time. The document contains questions about drawing total cost lines on a chart, calculating profit from producing 20,000 pairs of shoes, identifying two economies of scale from increasing production, and explaining how break-even charts can be useful to the Operations Director.

    Copyright:

    © All Rights Reserved
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    of 2

    IGCSE – 9

    Revision Paper – 002


    Burnett manufactures a range of sports shoes. The Operations Director is planning to
    increase the scale of production at its factory. She hopes it could lead to more than one
    economy of scale. The extra output would allow Burnett to export its shoes for the first
    time.
    (a) Draw the monthly total cost line on Figure 1. [2]
    (b) Use the chart to calculate the monthly profit if Burnett produces and sells 20 000 pairs
    of shoes.

    ...................................................................................................................................................

    ...............................................................................................................................................[2]

    (c) Identify and explain two possible economies of scale that Burnett could benefit from.

    1: ...............................................................................................................................................

    Explanation: ..............................................................................................................................

    ...................................................................................................................................................

    ...................................................................................................................................................

    2: ...............................................................................................................................................

    Explanation: ..............................................................................................................................

    ...................................................................................................................................................

    ...............................................................................................................................................[4]

    (d) Identify and explain two ways in which break-even charts can be useful to the
    Operations Director of Burnett.
    Way 1: .......................................................................................................................................

    Explanation: ..............................................................................................................................

    ...................................................................................................................................................

    ...................................................................................................................................................

    Way 2: .......................................................................................................................................

    Explanation: ..............................................................................................................................

    ...................................................................................................................................................

    ...............................................................................................................................................[6]

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