Business Studies · Oct / Nov 2022 · Paper 11 · Question 1

SSG manufactures mobile (cell) phones using batch production. Quality control is important. SSG has 130 employees who all receive on-the-job training. The Marketing Manager is analysing cost and output data for product X. An extract is shown in Table 1.1. As product X is in the maturity stage of the product life cycle SSG is considering possible extension strategies. Table 1.1 Extract from SSG’s cost and output data for product X Rent and other expenses per month $300000 Variable cost per unit $80 Output per month 12000

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