Employer-employee relations

Question 2 · Hartwell Engineering

Hartwell Engineering makes precision components for the aerospace industry. Demand is rising, and the factory is operating at 96% capacity utilisation. The directors are considering two investments. Extract C: Investment options

Year	Project X: new robotic line (£000)	Project Y: extension to existing factory (£000)
0 (cost)	(1,500)	(900)
1	400	300
2	500	300
3	600	300
4	600	300

(Figures in brackets are outflows. Other figures are net cash inflows.) Extract D: Workforce concerns Hartwell employs 220 skilled machinists. The trade union representing them has warned that the robotic line could lead to 40 redundancies. Labour productivity at Hartwell is 12% below the industry average, but quality is excellent: the defect rate is 0.3% compared with an industry average of 1.1%.

From Paper 2: Business 2

2.320 marks

Hartwell's directors must choose between Project X and Project Y. Using all the information, evaluate which project Hartwell should choose.

Score 0 / 20 · 0 of 1 marked

This paper is written by Plasmo in the style of the AQA A-Level Business exam. It is not a past paper and is not produced or endorsed by the exam board.

Employer-employee relations Exam Questions: AQA A-Level Business | Plasmo