A boutique sportswear manufacturer, VeloStyle, faces the weekly demand and cost schedules shown in the table below:
| Output (units/week) | Price per unit (£) | Total Revenue (£) | Total Cost (£) |
|---|---|---|---|
| 30 | 70 | 2,100 | 1,200 |
| 40 | 60 | 2,400 | 1,600 |
| 50 | 50 | 2,500 | 2,000 |
| 60 | 40 | 2,400 | 2,400 |
| 70 | 30 | 2,100 | 2,800 |
If VeloStyle’s primary business objective is to maximise its sales volume (growth) subject to the constraint of making at least a normal profit, which combination of weekly output and price per unit will they choose?
Output of 303030 units and price of £70\text{£}70£70
Output of 505050 units and price of £50\text{£}50£50
Output of 606060 units and price of £40\text{£}40£40
Output of 707070 units and price of £30\text{£}30£30
16 exam-style questions on OCR A Level Economics Business objectives. Each one has a worked solution and a mark scheme showing where the marks go.