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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. The variable cost for making one fat cake can be calculated by summing the cost of each ingredient and th... 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.
Answer
To find the variable cost for a single fat cake, we need to sum up the costs of all ingredients and the labor charge:
- Bread flour: R0.70
- Sugar: R0.75
- Salt: R0.20
- Instant yeast: R0.20
- Water: R0.05
- Oil for deep frying: R0.50
- Labor cost: R0.25
Thus, the formula for total variable cost becomes:
Calculating this gives:
Therefore, the variable cost for making one fat cake is R2.50.
Step 2
The table below shows information for the income and expenses for fat cakes.
Answer
Using the provided information, you can analyze the relationship between the number of fat cakes sold and the corresponding total costs and income. The total income increases with the number of cakes sold, and the variable costs must be monitored to determine overall profitability.