Previous MOS = 750 - 270 = 480 aircraft; Revised MOS = 750 - 420 = 330 aircraft

Explanation that a lower MOS = lower levels of profit and therefore exposes the business to more risk.

c) Delays can damage relations with the customers of Airbus, such as Singapore Airlines. Higher production costs are likely to reduce profits for Airbus as demand (tends to) falls and customers may switch to competitor company Boeing. Production delays might also harmfully affect the company's reputation and corporate image.

d) Consideration of both the disadvantages and advantages of BEA for Airbus, with evaluation of its value/usefulness. Selling a single product (the A380) might make BEA highly useful for such an expensive and large project. Break-even analysis is likely to be a short-lived tool for the Airbus A380 project, once the firm reaches breakeven; the tool no longer proves as useful to the organisation for this specific product.