- Exam-style questions - Paper 1 1 Gowri plans to start up her own business using her own savings. She wants to produce fashion
clothes for women. She is a very good clothes designer but she does not like stitching clothes together. Two friends have offered to help Gowri. Abha is an experienced material cutter - she can cut lengths of material for clothes with very little wastage. Aditi is quick at sewing. a) What is meant by 'business'?[2 ] b) Identify two factors of production that Gowri will need for her new business 2] c) Identify and explain two possible opportunity costs that Gowri may have from her decision to start her own business. [4 d) Identify and explain one advantage and one disadvantage to Gowri's business of using division of labour in making clothes. [6] e) Do you think that Gowri's business will be able to sell all of the clothes that it makes ? Justify your answer .[6 ]m
1 answer:
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Answer:
Material cost per unit = $3.64
Conversion cost per unit = $4.59
Manufacturing cost per unit = $8.23
Explanation:
1. Calculate the unit cost for materials:
Material cost per unit =
Material cost per unit = $3.64
2. Calculate the unit cost for conversion costs:
Conversion cost per unit =
Conversion cost per unit = 4.59
3. Calculate the total manufacturing costs:
Manufacturing cost per unit = Material cost per unit + Conversion cost per unit
Manufacturing cost per unit = $3.64 + $4.59
Manufacturing cost per unit = $8.23