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GreenWheels | Activity | AQA A-Level Business (2026) | Unit 3.2.2

Level:
A-Level
Board:
AQA

Last updated 12 Aug 2026

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In this activity, students use capacity utilisation data to assess how a planned increase in production could affect the profitability of electric bicycle manufacturer GreenWheels.

Students analyse how a forecast rise in production could affect GreenWheels, an electric bicycle manufacturer with annual capacity of 12,000 bikes. They calculate next year’s estimated capacity utilisation and use the result to explore possible effects on unit costs, margins and profit. The activity also encourages evaluation of drawbacks including overtime costs, employee pressure, quality problems, returns and reputational damage, helping students recognise that higher capacity utilisation may improve profitability but also create operational risks.

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