Ahen..The - Rkers..Axeaaed..A.Te: Jexk - Placeand.Kt - Heemplones.Tkng

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poyees Who all receive on-the-job training.

The Marketing Manager is analysing c


ut data ror product X. An extract isshown in Table1.1. Asproduct X is in the maturiy
Sstage of the product life cycle SSG is considering possible extension strategies.

Table 1.1

Extract from SSG's cost and output data for product X


Rent and other expenses per month $300 000
Variable cost per unit $80
Output per month 12 000

(a) De ne 'on-the-job training.

Ahen..the.rkers..axeAaed..a.te
JeXk.placeand.kt.heemplones.tkng
hee.. [2]

(b) Calculate total variable cost per month. Show your working.

$80XI2000.A6OQOO.
ota..Mtiabdecost.e..INOthz60DO .

(c) Identify four factors a business should consider when deciding which method of production
to use.

Factor1: usineas.8i:

..

tor 2:EXuseSE.dpe.usahes.iS.capta.
Aakstr..Aengive..
Factor
3:.cocducto. wseather.al. he..pr ā.ae
sCRMe..okhe.hame.to..be.ccsMie..
Factor
4:.Market. eakhex.....selh.s.
A.Oduc.on..OS..o..icke..gnadket

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