A plant nursery currently earns a monthly profit of £1,900. It is considering a new production plan for trays of seedlings. The forecast figures for one month are shown in the table.
| Trays produced | Trays expected to be sold | Fixed costs | Variable cost per tray produced | Selling price per tray |
|---|---|---|---|---|
| 900 | 840 | £2,800 | £4 | £9 |
Calculate the expected monthly profit from the new production plan.
Calculate the expected change in monthly profit if the nursery adopts the new production plan.
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.