Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 R5 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 50 cents 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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Texts and Cases

Authors: Robert Anthony, David Hawkins, Kenneth Merchant

13th edition

1259097129, 978-0073379593, 007337959X, 978-1259097126

More Books

Students also viewed these Accounting questions