5.1.1 Calculate the variable cost for making one fat cake - NSC Mathematical Literacy - Question 5 - 2016 - Paper 1
Question 5
5.1.1 Calculate the variable cost for making one fat cake.
The costs of the ingredients needed to make one fat cake are as follows:
- Bread flour: R0.70
- Sugar: R0... show full transcript
Worked Solution & Example Answer:5.1.1 Calculate the variable cost for making one fat cake - NSC Mathematical Literacy - Question 5 - 2016 - Paper 1
Step 1
Calculate the variable cost for making one fat cake.
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Answer
To determine the variable cost of making one fat cake, we add the cost of each ingredient along with the labor cost:
Draw a straight line graph that represents the cost in ANSWER SHEET 1.
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Answer
Plot the total cost against the number of fat cakes:
Total cost for 0 fat cakes: R50
Total cost for 30 fat cakes: R125
Total cost for 60 fat cakes: R275
Total cost for 90 fat cakes: R350
Total cost for 120 fat cakes: R420
Total cost for 150 fat cakes: R460
In ANSWER SHEET 1, plot each point and connect them with a straight line.
Step 3
Use the graph or otherwise determine the number of fat cakes she must sell to breakeven.
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Answer
From the graph, identify the point where the total income equals the total cost. The breakeven point occurs at approximately 100 fat cakes, where income (R500) equals total cost (R500).
