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QUESTION 4 (14) The advent of a hybrid motor car which can be fuel-driven or battery driven for situations where it is not affordable to
QUESTION 4 (14) The advent of a hybrid motor car which can be fuel-driven or battery driven for situations where it is not affordable to use fuel, an entrepreneur has started a factory to manufacture a battery that uses zinc-air as energy. The battery existing manufacturing line would cost R4 million. Fixed costs per year include sales, marketing, and advertising making a total of R3 million, and other fixed costs totaling R2 million. 4.1 What is the total variable cost per battery? (5) 4.2 What are the total fixed costs for the battery? (5) 4.3 If the price of the battery is set at R450, what would be the break-even volume? (5) QUESTION 5 (29) A group of local residents have formed a cooperative to manufacture stationery. One of the items produced is ballpoint pens. The mini-factory sells the ballpoint pens for R300 per dozen. The manufacturing costs are R18 per ballpoint pen. Costs including all selling and administrative costs except advertising are R80 000. 5.1 How many dozens must the manufacture sell to cover these costs and be able to pay and advertising campaign of R24 000
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