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6.1 Give THREE examples of start-up costs for a small business from home - NSC Consumer Studies - Question 6 - 2023 - Paper 1
Question 6
6.1 Give THREE examples of start-up costs for a small business from home. 6.2 State THREE factors that influence the efficient production of quality products. 6.3 ... show full transcript
Worked Solution & Example Answer:6.1 Give THREE examples of start-up costs for a small business from home - NSC Consumer Studies - Question 6 - 2023 - Paper 1
Step 1
List the information that must be included on the package label of the baked products.
Answer
The package label of the baked products must include the following information:
- Name of the product
- Name of manufacturer
- Trade name/mark/logo/emblems
- Address/details of manufacturer
- Country of origin
- Ingredients
- Storage instructions
- Nutritional information
- Weight/volume/quantity/size
- Allergens
Step 2
Step 3
Explain why it is important for Bakers Creationz to conduct regular maintenance of its second-hand equipment.
Answer
Regular maintenance of second-hand equipment is crucial for several reasons:
- It prevents breakdowns during production, ensuring a smooth workflow.
- It saves time and reduces potential losses due to equipment failure.
- It enhances safety in the workplace, protecting both employees and products.
- Regular upkeep helps extend the lifespan of the equipment, leading to long-term savings.
Step 4
a) Calculate the profit that Pick n Pay will make on EACH pack of snowballs.
Answer
To calculate the profit per pack, we use the formula:
Profit = Selling Price - Cost Price
Given that:
- Cost Price from Njabulo = R16.00
- Profit margin = 70% of the cost price = 0.70 × R16.00 = R11.20
Thus, the profit that Pick n Pay will make on EACH pack is R11.20.
Step 5
Step 6
Analyse the validity of the statement above.
Answer
The statement claims that Bakers Creationz has not faced cash flow challenges since it started in 2012. To analyze its validity, consider the following points:
- Njabulo's strategy of buying equipment at a lower cost contributed to fewer financial burdens.
- Starting his business at home reduced initial overhead costs.
- By supplying to established retailers like Pick n Pay, he secured a steady income stream, which likely minimized cash flow issues.
However, it is essential to recognize that every business faces financial challenges, particularly in its early stages. While the statement may hold true for the current period, fluctuations can occur due to various market conditions.