Question
Johan is manufacturing Fruit Juice which is an instant Juice brand. Johan is currently in the process of expanding but is unclear exactly how many
Johan is manufacturing Fruit Juice which is an instant Juice brand. Johan is currently in the process of expanding but is unclear exactly how many workers he needs to employ on his new site. These workers can be hired in the labor market at R85 each per hour. Given the simplicity of the supplying process, the selling price for is products is R15 each. Answer the following questions that follow:
a) Complete the production and cost table and interpret the table with specific reference to production. (15)
b) Advise the owner on how many workers he should employ and explain to him the rationale behind your argument. (5)
c) Explain to the owner the relationship between production and cost and why it is important to understand. (5
Number | TP | Total cosrtsC | Total Fixed Costs |
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