Gabby is the production manager at a factory that manufactures a range of electrical products including televisions. The company uses flow production methods in its factory. Gabby was looking at some data produced by the finance department. This data is shown in Table 1. Table 1: Cost and Output Data Output per week [units] | Fixed costs [000's] | Variable costs [000's] 2000 | 8000 | 6000 3000 | 8000 | 7000

1. (a)Calculate the cost per unit if the output of the factory is 3000 units per week.[2]
2. (b)Identify two economies of scale that the factory might gain by increasing its weekly output.[2]
3. (c)The factory uses flow production methods. Identify and explain two features of flow production.[4]
4. (d)Rather than making components, Gabby's company is going to buy them from another manufacturer. Identify and explain three advantages to Gabby's company of doing this.[6]
5. (e)Recently Gabby's company has become much larger. Do you think that becoming larger is an advantage for a business? Justify your answer.[6]