MetroMove serves repeat customers while raising prices; the case evidence includes unit contribution of ?2,383, sales of 528 units, and a 20% change in costs or demand. Evaluate how the business should respond to Distinguish variable costs, fixed costs and total costs.

Build the answer from the scenario. Apply variable costs, total costs, fixed costs to MetroMove serves repeat customers while raising prices, then explain how the decision changes cash inflow, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for shareholders, uses figures such as ?5,783 or 20%, and reaches a supported judgement based on the business objective.

Anchor the response in evidence. This explanation is anchored to Basic financial terms and Business planning because it links the command word to scenario evidence, commercial reasoning, financial impact, and stakeholder consequences. It also separates internal and external finance, which helps the final judgement stay precise.