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Terry
0450-19-O-N-11-3e
Chan
TOPIC QUESTION - PAPER 1
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Chan
June 17, 2021 at 2:10:58 AM
Oct/Nov 2019
Version 1
4.0 Operations Management
4.2 Costs, Scale of Production and Break-Even Analysis
YOUR ANSWER
Base on the information in table 1, Keila will breakeven if she has 250 customers a week. As she will be opening at a popular tourist location, Keila should earn an average profit of $150 every week, should she have an average of 325 customers per week. As Keila used primary market research, the customer information should be updated. As such, Keila should open the bakery shop as this would enable her to achieve her business objective to expand her business.
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