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Terry
0450-19-M-J-12-1e
Chan
TOPIC QUESTION - PAPER 1
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Chan
May 17, 2026 at 7:36:21 AM
May/June 2019
Version 2
4.0 Operations Management
4.2 Costs, Scale of Production and Break-Even Analysis
YOUR ANSWER
Increasing price of food will reduce demand as it will be less affordable. This will reduce revenue, reducing profits. By reducing cost, however, demand will remain, but quality of cheaper food ingredients may be poor. But as PLK is a social enterprise, it has a social responsibility to ensure that the food they sell are affordable by all.
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