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Business Management HL Paper 2 (May 2025, TZ2)

Open practice modeView source PDF page 2
  1. Fashion Clothing (FC)

(a) State two features of premium pricing. [2]

Figure region page 7
Figure region from page 7

(b) Using Figure 1:
(i) determine FC’s buffer stock; [1]

(ii) calculate the reorder quantity for FC (show all your working). [2]

(c) Calculate RJ’s capacity utilization rate (no working required). [1]

(d) Calculate RJ’s defect rate (show all your working). [2]

(e) Explain one disadvantage of FC’s decision to have RJ as its primary supplier. [2]