wiss Ltd is the leading manufacturer of chocolates in South Africa and is famous for their rich dark chocolate "The Sindor". Swiss Ltd has a 31 December 2019 year end.

"The Sindor"

"The Sindor" is a dark milk chocolate with coco beans as its sole ingredient.

Coco

Swiss Ltd is a proudly South African company and purchases coco beans from a plantation in KwaZulu Natal. Swiss received two batches of coco beans. The first batch consisted of 10 000kg of coco beans with a total cost ofR287 500 (incl. 15 %VAT).The second batch consisted of 25 000kg of coco beans at a total cost ofR115 000 (incl. 15% VAT).

Swiss Ltd did not have any cash resources to finance the purchase of the coco beans and took out a short term loan with First National Bank Ltd. The finance cost for the year on the first batch of coco beans was R10 000 and R7 000 or the second batch. The supplier offers a 25% trade discount if payment is made within 30 days of the invoice date. Swiss Ltd always pays its suppliers 15 days after invoice date. To produce one 'Sindor' chocolate bar, Swiss Ltd using 0.5kg of coco beans.

What is the cost of coco bean to produce one Sindow bar?

Selected Answer:5.75