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Business Studies · May / June 2020 · Paper 11 · Question 3

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The question as text

NWA is a large and profitable airline business. It has grown quickly over the past 10 years and new aeroplanes have helped to improve its brand image. NWA offers low priced flights for tourists to 50 countries. Sales promotion is an important part of NWA’s marketing mix. The Finance Director is worried that NWA has a high level of debt as its main source of finance is bank loans. The organisational chart of NWA has many levels of hierarchy with narrow spans of control. Table 3.1 Cost and price data for a typical NWA flight (2019) Price per customer $40 Fixed costs $2000 Variable cost per customer $24 Maximum number of customers 200

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  • 3(a)[2]

  • 3(b)[2]

  • 3(c)[4]

  • 3(d)[6]

  • 3(e)[6]

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