Business HL (FE2016)
Paper 2
Questions Attempted 0/1
Business HL (FE2016)
Available time 20 Minute(s)
01

Champion Sports Products (CSP)

Paper 2
:
Available time 20 Minute(s)
01. Question
Level Medium
Maximum Mark 10
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Champion Sports Products (CSP) manufactures basket balls. CSP uses batch production.

Currently, CSP sells 200 basket balls per month. Each basket ball sells at an average price of €100. Below are the forecasted fixed and variable costs for 2021.

Table 1: Fixed costs

Table 2: Variable costs per basket ball

(a). Define the term batch production.

[Marks: 2]

(b). (i) Calculate the break-even level of output for CSP for 2021 (show all your working).

[Marks: 2]

(b). (ii) Construct a fully labelled break-even chart, to scale, for CSP for 2021.

[Marks: 4]

(b). (iii) Calculate the forecasted profit if CSP sells 2400 basket balls in 2021 (show all your working).

[Marks: 2]
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