A specialist metal workshop produces ventilation grilles. An urgent order would require the workshop to operate an evening shift and pay overtime. The workshop aims to maximise profit and expects to sell all the grilles produced.
| Monthly production plan | Output | Total revenue | Total cost |
|---|---|---|---|
| Current daytime shift | 400 grilles | £100,000 | £92,000 |
| Daytime and evening shifts | 500 grilles | £130,000 | £124,000 |
Calculate the change in profit per grille if the workshop operates both the daytime and evening shifts.
Using the table and your answer to part (a), explain whether the workshop is likely to operate the evening shift.
138 exam-style questions on AQA GCSE Economics 1.4 Production, costs, revenue and profit, covering 1.4.1a Business objectives, 1.4.1b Types of costs and revenue, 1.4.1c Calculating profit, 1.4.1d Profit as an incentive to produce, 1.4.1e Moral and ethical considerations, 1.4.2a Production versus productivity, 1.4.2b Factors and benefits of productivity, 1.4.3a Economies of scale and business behaviour, 1.4.3b Types of economy of scale, and 1.4.3c Diseconomies of scale. Each one has a worked solution and a mark scheme showing where the marks go.