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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: Clearly state what the product is.
- Name of manufacturer: Identify who manufactured the product.
- Trade name/mark/logo/emblems: Include any branding elements.
- Address/details of manufacturer: Provide contact or location details of the manufacturer.
- Country of origin: Indicate where the product was made.
- Ingredients: List all components of the product.
- Storage instructions: Include instructions for proper storage.
- Nutritional information: Provide details about nutrition content.
- Weight/volume/quantity/size: State the amounts clearly.
- Allergens: Highlight any potential allergens present in the product.
Step 2
Name TWO human skills that helped Njabulo to start his business.
Answer
- Baking skills: Njabulo's ability to bake various products effectively helped him start and grow his business.
- Marketing skills: He utilized marketing strategies to promote his products, including employing school children as agents.
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:
- Preventing Breakdowns: Regular checks can prevent sudden failures during production, ensuring consistency.
- Extending Lifespan: Proper maintenance can extend the lifespan of the equipment, saving costs in the long run.
- Safety: It reduces the risk of accidents caused by faulty equipment, ensuring a safer working environment for staff.
Step 4
Calculate the profit that Pick n Pay will make on EACH pack of snowballs.
Answer
To calculate the profit per pack for Pick n Pay:
- Selling Price: R16.00 per pack.
- Cost Price: To find the profit, we know they add 70% profit on the cost price (C):
Let the cost price be C.
Selling Price = C + 0.70C = R16.00
This simplifies to:
1.70C = 16.00
C = 16.00 / 1.70 = R9.41 (approx)
- Profit = Selling Price - Cost Price = R16.00 - R9.41 = R6.59 (approx)
Thus, Pick n Pay makes R6.59 profit on each pack of snowballs.
Step 5
Calculate Pick n Pay's selling price for EACH pack of snowballs. Show ALL calculations.
Answer
Using the same cost price calculated previously:
- Cost Price (C) = R9.41 (approx).
- Selling price includes 70% profit on the cost:
Selling Price = C + 0.70C Selling Price = 1.70C Selling Price = 1.70 * R9.41 = R16.00 (as given).
Thus, Pick n Pay's selling price for each pack of snowballs is R16.00.
Step 6
Analyse the validity of the statement above.
Answer
The statement can be analyzed as follows:
- Njabulo started his business at a lower cost by using second-hand equipment, which is valid and practical.
- It’s also important to consider that while starting with less expensive equipment can be financially sound, the reliability and maintenance of such equipment should be regularly evaluated.
- Additionally, Njabulo’s journey reflects effective entrepreneurship through adapting his business and securing partnerships, thus reinforcing the claim about strategic resource utilization.