Capacity Utilisation & Outsourcing (Cambridge (CIE) A Level Business): Exam Questions

Exam code: 9609

37 mins7 questions
1a
2 marks

Read the following extract (lines 45-48 and Table 1) before answering

Calculate the:

capacity utilisation in May 2022.

1b
12 marks

Recommend how HD could solve the problem of operating over maximum capacity. Justify your recommendation.

2
2 marks

Read the following extract (line 60-64 and Table 1) before answering

Calculate, for Kitchen 2, the:

average daily capacity utilisation

3
3 marks

Read the following extract (opens in a new tab)(Table 1) before answering

Refer to Table 1 and other information from the above extract. Assume that Total Quality Management (TQM) is implemented successfully. Calculate the:

capacity utilisation

4
10 marks

Read the following extract before answering

Analyse the benefits to JGS of outsourcing.

5
3 marks

Case Study

Gemini Theatre (GT)

GT is a private limited company fully owned by the Gemini family. It owns a small theatre. This building is used to show live stage performances. Some of the performances are created by GT and some are created by visiting groups who rent the theatre. Table 2.1 shows the planned performances for January 2021.

Table 2.1: Planned performances for January 2021

Name of performance

Created by

Number of performances

Ticket price

Percentage of tickets sold

A Summer Dream

Visiting group

9

$40

100%

Wise Owl

GT

14

$15

60%

La Poeme Ballet

GT

5

$20

40%

GT gains all the revenue from performances created by GT. Visiting groups must pay 50% of their total ticket revenue to GT. The theatre has a maximum of 250 tickets that can be sold for each performance.

GT uses cost-based pricing to set each ticket price for its own performances. Each performance makes a profit but the company often experiences cash flow problems.

GT needs to recruit a new Theatre Manager. The person hired will have many duties, including the responsibility for all of GT’s administration as well as some accounting. The Directors are considering two people who were both recently interviewed. Table 2.2 contains information gained from the interview process.

Table 2.2: Information gained from the interview process

Nick

Portia

  • Three years working for a similar theatre business

  • A Levels in Business, Art and Chinese

  • Very organised and efficient

  • No management experience

  • Wants to move overseas in the future

  • Eight years working as a manager for a bank

  • No formal qualifications

  • Late for the interview

  • Good sense of humour

  • Looking for a long-term career

Explain one possible advantage to GT, other than increased revenue, of renting the theatre to visiting groups.

6
2 marks

Read the following extract (Table 1) before answering

Calculate for 2019 the:

overall average capacity utilisation for NH

7
3 marks

Read the following extract (Table 2) before answering

Calculate the:

forecast 2021 capacity utilisation for laptop cases without the special order.