Cambridge IGCSE Business Studies practice

Paper 1 structured question: Costs, scale of production and break-even analysis

Try the question first, then check the answer and practise the same topic again.

At a glance

Paper

Marks

Topic

Costs, scale of production and break-even analysis

Exam-style question

Try this first

Paper 1Short Answer and Data Response3 marks

A business is considering whether to continue production based on its costs.

Description

The business has total costs of $20,000 and total revenue of $18,000.

a
Explain the implications of the current cost and revenue situation for the business.
Your answer
Aim for approximately 3 distinct marking points.
[3]

0 of 1 part answered

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Paper 1Short Answer and Data Response2 marks

Description

The company has fixed costs of $10,000 and variable costs of $5 per unit produced. Last month, they produced 1,000 units.

a
Calculate the total costs incurred by the company last month.
Your answer
Aim for approximately 2 distinct marking points.
[2]