StyleHub serves commuters while opening a second outlet; the case evidence includes net profit margin of ?8,148, sales of 118 units, and a 21% change in costs or demand. Assess how the business should respond to Calculate and interpret average unit costs.

Use the command word first. Apply average unit cost to StyleHub serves commuters while opening a second outlet, then explain how the decision changes labour productivity, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for customers, uses figures such as ?11,548 or 21%, and reaches a supported judgement based on the business objective.

Structure the judgement carefully. This explanation is anchored to Economies and diseconomies of scale and Expanding a business because it links the command word to scenario evidence, commercial reasoning, financial impact, and stakeholder consequences. It also separates break-even and profit, which helps the final judgement stay precise.