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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. Ingredient Cost Bread flour R0.70 Sugar R0.75 Salt R0.20 Instan... 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

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Answer

To calculate the variable cost for one fat cake, we add up the costs of all the ingredients:

Thus, the total variable cost is:

$ext{Total variable cost} = R0.70 + R0.75 + R0.20 + R0.05 + R0.50 + R0.25 = R2.50$

Step 2

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Answer

Using the data from the table provided, we analyze the income and expenditures:

No. of fat cakes sold increases from 0 to 150.
Total cost increases progressively, while income also increases.
We can observe the break-even point by analyzing where income equals total cost, which occurs at 100 fat cakes sold according to the provided data.

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