Business Studies · May / June 2022 · Paper 12 · Question 3

CHW manufactures electrical products including cameras. The business is developing new products. The Managing Director knows that the stage of the product life cycle can influence CHW’s marketing decisions about promotion. He is analysing data for one of its products. An extract is shown in Table 3.1. The business would also like to introduce flow production into the factory. Table 3.1 Extract from CHW’s data for one type of camera (2021) Selling price per unit ($) 120 Variable cost per unit ($) 40 Fixed costs ($) 200000 Margin of safety (units) 500

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