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Q.2.6. Tebello has decided to manufacture and sell scented candles in order to supplement her pocket money. Her dad has
Posted: Tue Apr 26, 2022 9:55 am
by answerhappygod
- Q 2 6 Tebello Has Decided To Manufacture And Sell Scented Candles In Order To Supplement Her Pocket Money Her Dad Has 1 (42.09 KiB) Viewed 49 times
Q.2.6. Tebello has decided to manufacture and sell scented candles in order to supplement her pocket money. Her dad has agreed that she can use the garage at rental of R200 per month. Each candle will use wax of R5 and strings for the wick will amount to R1 per candle. The scent will cost R2 per candle. Sarah will be assisting Tebello with making of the candles and will be paid Rs for every candle that is completed. Equipment will cost R500 per month. Tebello's mom will be selling the candles at work for which she will earn commission of 50cents per candle. Candles are sold at R30 each. 150 candles were sold in the first month of operation. Q.2.6.1 Assume that total variable costs per unit is correctly calculated as R13.50 per unit. Calculate the total profit/loss for the first month of operation. Q.2.6.2 Calculate the total labour cost for the first month of operation. (6) (1)