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FNG Paint (Pty) Ltd produces finger paint and sells them to preschools. The following information relates to a set of finger paint. A set of finger paint is considered to be one unit. Direct labour needed for the first set of paint 4 hours Direct labour costs per unit R30 per hour Direct material costs per unit R25 Total Fixed costs R2 000 Learning curve 80% Required: Using the learning curve theory and information provided above, calculate the expected average cost for one set of paint should four and sixteen sets be produced, respectively. Round off to two decimal places.

(Marks: 15) Question 1 FNG Paint (Pty) Ltd produces finger paint and sells them to pre-schools. The following information relates to a set of finger paint. A set of finger paint is considered to be one unit 4 hours R30 per hour Direct labour needed for the first set of paint Direct labour costs per unit Direct material costs per unit Total Fixed costs Learning curve R25 R2 000 80% Required: Using the learning curve theory and information provided above, calculate the expected average cost for one set of paint should four and sixteen sets be produced, respectively. Round off to two decimal places