Business Studies · Oct / Nov 2018 · Paper 11 · Question 1

SOLS makes 5 styles of luxury shoes for men, using job production. SOLS operates in a niche market. Quality assurance is important. All materials, including leather, are imported. SOLS uses cost plus pricing. The shoes are sold directly to customers through its website. The Managing Director said: ‘We can sell our shoes for $100 less a pair than our competitors because we have no shops.’ Demand is increasing and the Managing Director has to decide whether to change to batch production.

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