Business Studies · May / June 2023 · Paper 12 · Question 1

FBW manufactures watches using job production. It employs 5 full-time production employees. Each worker is offered regular training. Last year FBW sold 600 watches. The Managing Director plans to use break-even analysis to help decide whether to increase the price of its products. FBW’s current break-even chart is shown in Fig. 1.1. Break-even chart for FBW’s watches 120 000 100 000 total revenue total costs 80 000 costs and revenue $ 60 000 40 000 20 000 fixed costs 0 0 100 200 300 400 500 600 700 800 number of watches Fig. 1.1

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