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Alfred runs a timber business that manufacture and sells small replicas of African huts. These replicas are made from indigenous wood and are very popular
Alfred runs a timber business that manufacture and sells small replicas of African huts. These replicas are made from indigenous wood and are very popular with tourists. They sell two sizes: the Deluxe and the Cottage. The cost price of the Deluxe is B1 500 and the cost price of the Cottage is R990. Alfred sells the Deluxe for R2 400 and the Cottage for R 1500 . The Deluxe makes up 60% of total sales and the Cottage 40%. The fixed costs of the business come to R4 187.60 per month. - Determine the gross percentage and the gross profit percentage of each of the two products. - Calculate the weighted average gross profit percentage. - What is the break-even (rand value) furnover per month? - If Alfred needs a "net profit of R3 032.40 per month, what must the turnover (rand value) be per month
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