State one major difference between production costs and operating costs. (2) How many sizes of hoodies are offered to the US clothing shop? (2) “Maties” How much did Camille budget for Transport? (2) What is the financial situation of Camille’s business? (2) Camille plans to produce and sell all 485 hoodies. Calculate the minimum selling price of a hoodie for the business to break even. (3) Camille imports fabric from two sources depending on the exchange rate. Use the exchange rate table to show by calculation that it is currently cheaper to buy from China. Option 1: China (¥ 21 / meter) Option 2: India (₹ 12 / meter) Rand per unit foreign currency India (Indian Rupee, 4,6962 China (Chinese Yaun, ¥) 2,14752 ₹) (4) Due to inflation, it is expected that the total operating costs will increase by 8% and total production costs will increase by 7%. Show that Camille will be able to sell 485 hoodies at R 240 each and make a profit. (6) It would be wise for Camille to start thinking of a retirement annuity. Study the graph below and answer the questions that follow: How many months would Camille invest into the retirement annuity? (2) Why does the solid line grow faster than the dotted line? (2) Use the graph to determine the difference in the closing balance between the two investments after the full term of investment. (3) [54]
State one major difference between production costs and operating costs. (2) How many sizes of hoodies are offered to the US “Maties” clothing shop? (2) How much did Camille budget for Transport? (2) What is the financial situation of Camille’s business? (2) Camille plans to produce and sell all 485 hoodies. Calculate the minimum selling price of a hoodie for the business to break even. (3) Camille imports fabric from two sources depending on the exchange rate. Use the exchange rate table to show by calculation that it is currently cheaper to buy from China. Option 1: China (¥ 21 / meter) Option 2: India (₹ 12 / meter) Rand per unit foreign currency India (Indian Rupee, ₹) 4,6962 China (Chinese Yaun, ¥) 2,14752 (4) Due to inflation, it is expected that the total operating costs will increase by 8% and total production costs will increase by 7%. Show that Camille will be able to sell 485 hoodies at R 240 each and make a profit. (6) It would be wise for Camille to start thinking of a retirement annuity. Study the graph below and answer the questions that follow: How many months would Camille invest into the retirement annuity? (2) Why does the solid line grow faster than the dotted line? (2) Use the graph to determine the difference in the closing balance between the two investments after the full term of investment. (3) [54]
MLGr12Paper1Sept2016.docx