Harbour Hire serves repeat customers while raising prices; the case evidence includes unit contribution of ?5,655, sales of 540 units, and a 20% change in costs or demand. Which option best applies Explain how technology, the economic situation, legislation and environmental expectations can affect business activity?

The correct option is: Use legislation, technology, environmental expectations to judge gross profit margin, shareholders impact, and the business objective in Dynamic nature of business.

This is the best-supported choice because Use legislation, technology, environmental expectations to judge gross profit margin, shareholders impact, and the business objective in Dynamic nature of business. The case evidence gives ?7,155, 540 units, and 20%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse fixed and variable costs, miss the shareholders, or ignore the business objective.