7. John buys and sells second-hand cell phones. His projected sales for the year are R570 000. His opening stock is estimated at R10 000 (20 cell phones). John’s projected purchases for the year are estimated at R342 000 (closing balance of R15 000). He has estimated that his fixed costs will be R50 000. • What is the selling price per cell phone? • Calculate the cost price per cell phone. • Remark on his pricing strategy.
8. You would like to start a small cell phone repair business. You have estimated that you will work 224 hour per month (8h/day × 25 days). Your total expenses per month are expected to be R5200. A friend asks you to repair a faulty cell phone. Parts that need to be replaced amounts to R200 and you estimated that you would work 2 hour on the cell phone. • What will it cost you to repair the cell phone? • How much should you charge him (pricing) if a fair mark-up is 20%?
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