6.1 List the information that should appear on a product label - NSC Consumer Studies - Question 6 - 2024 - Paper 1

• Price
• Place

Using locally available raw materials has several advantages:

1. Freshness: Products like food will be fresh, contributing to quality.
2. Ease of Access: They can be easier to obtain and often delivered directly or picked up locally, which reduces transportation costs.
3. Reduced Imports: There is no need for expensive transportation from far-off regions, avoiding extra fees.
4. Supplier Relationships: A good relationship with suppliers may allow for favorable credit terms, helping cash flow.

Having trained staff offers multiple financial benefits:

1. Increased Productivity: Trained employees often work more efficiently, leading to higher sales.
2. Quality Output: They help in producing higher quality work, resulting in happy customers and repeat business, which enhances profits.
3. Reduced Waste: With proper training, employees make fewer mistakes, saving the business from costs associated with waste and rework.

• Increased need for more storage space.
• Overstocking may occur.
• Stock may deteriorate before use, incurring losses.
• Raw materials could be damaged, leading to further financial strain.

• Primary target market includes students, specifically: University students, school learners, local community members, tourists, and teachers/school staff.

• The container can be moved easily.
• It can be repurposed for different business types.
• Containers can be resold after use.
• Owning the container eliminates rental costs.
• Lower maintenance costs compared to traditional shops.
• Fitted with solar power, minimizing electricity costs especially during load shedding.
• Features a gas stove, cutting down on electricity requirements.
• Designed to promote sustainable practices with recycling bins available.

• Environmentally friendly with reusable or biodegradable packaging.
• Offers a variety of products like drinks and snacks.
• Known for their signature giant muffin.
• Offers sit-down and take-away options for customer convenience.
• Provides loyalty programs to retain regular customers.

Calculations for determining the price:

Let’s consider the costs involved:

• If R300 is the cost for 60% of the items sold, then total revenue results in:
  • R300 x 60% + 100 = R180.00 for multiple items sold.

Alternatively:

• R300 x 24% + 100 = R20.00 for a single item. Therefore:
  • R300 x 60% = R480.00, leading to further breakdowns as:
  • R480.00 x 24% gives more insights into costs, potentially yielding R20.00 per muffin as a selling price based on calculated inputs from the stock.