Question 2 SmartStep, a fitness tracker manufacturer, has the following list of monthly costs in their company: 1 2 3 4 Plastic purchased for R250 per tracker manufactured. 10 Indirect materials purchased for R300 per tracker manufactured. Electronic components purchased for R500 per tracker manufactured. Wages of machine operators is R1 250 per operator per week. There are 30 operators on duty at all times. Salary of CEO per month, R45 000. Depreciation per machine, R120 000 per annum. 5 6 7 Advertising contract, R15 000 per month. 8 Sales commission per tracker sold, R25. 9 Administrative staff salaries: R960 000 per annum. Import taxes and customs duties on raw materials, R800 per 200 trackers manufactured. 11 Carriage on purchases of material: R600 per 50 trackers manufactured. TOTAL Additional information: 6 3 000 trackers are manufactured per month. 2 500 trackers are sold per month. Trackers are currently sold for R1 750 each. There are four weeks in a month. (Marks: 30) FIXED COSTS VARIABLE COSTS

Smartstep, a fitness tracker manufacturer, has the following list of monthly costs in their Additional information: - 3000 trackers are manufactured per month. - 2500 trackers are sold per month. - Trackers are currently sold for R1750 each. - There are four weeks in a month