Reference no: EM132561955

Hard Knock Manufacturers is responsible for manufacturing one type of cricket bat, the Kookaburra Kahuna. The following costs are applicable for the production of this type of bat:

Cost details                                                        Amount

Factory rent per year                                    R500 000

Factory machinery rent per year                       R300 000

Direct labour per bat                                       R700

Direct material per bat                                     R800

Manufacturing overheads per bat                       R600

Wages of factory workers per year                     R100 000

Each bat is sold to the general public at R4 500.00

REQUIRED:

Question 1: Calculate the variable cost to manufacture one bat.

Question 2: Calculate the total fixed cost to manufacture bats.

Question 3: Calculate total cost to manufacture 6 000 bats.

Question 4: Assume that each bat is sold at R4 500, calculate the profit that Hard Knock Manufactures make if they both manufacture and sell 8 000 bats.