Business Studies · May / June 2021 · Paper 14 · Question 4

Last year economic growth in country Y increased from 2% to 5%. Rohit wants to start up a car washing business in country Y. He will need to choose a suitable source of finance. Rohit has calculated some data. An extract is shown in Table 4.1. He understands that all business activity creates external costs. Rohit has to decide on a suitable location for his business. Table 4.1 Forecast price, cost and customer data for Rohit’s business Average price per customer $4 Variable cost per customer $1 Fixed cost per week $90 Number of customers per week 50

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