Business Studies · May / June 2016 · Paper 11 · Question 3

Rafiq is the Operations manager at a small factory. The business makes a range of soft drinks using batch production. Last year Rafiq successfully introduced just-in-time inventory control, based on an idea from one of the 40 employees. As the business is planning to expand, Rafiq thinks it would be a good idea to change to flow production. Table 1: Income statement for 2015 ($000) Revenue X Cost of sales 360 Gross profit 240 Expenses Y Profit 120 Retained profit 100

Read automatically from the paper; the printed page above is exact.