A manufacturer of bicycle helmets is considering changing to a larger production line. Its monthly figures are shown in the table.
| Current line | Forecast with larger line | |
|---|---|---|
| Helmets produced | 2,000 | 4,000 |
| Helmets expected to be sold | 1,900 | 3,600 |
| Selling price per helmet | £48 | £44 |
| Total cost | £82,000 | £148,000 |
Evaluate whether changing to the larger production line would improve the manufacturer's monthly profit.
83 exam-style questions on OCR GCSE Economics 2.6 Production, covering 2.6.1 Role of producers, 2.6.2 Importance of production and productivity, 2.6.3 Calculate cost, revenue, profit and loss, 2.6.4 Explain cost, revenue, profit and loss, 2.6.5 Cost, revenue and profit for producers, and 2.6.6 Economies of scale. Each one has a worked solution and a mark scheme showing where the marks go.