Question 8 Read the following scenario and answer the succeeding questions. Scenario 6: A young entrepreneur from Belville, identified a gap in the market for selling quality firewood. The best wood, according to the entrepreneur, is from the Northern Cape. The entrepreneur located a supplier willing to sell a bag of firewood for R28.00. To transport the wood to Belville, the entrepreneur hired a transportation truck that can accommodate 1 200 bags per trip from the Northern Cape to Belville. The transportation cost per bag is priced at R3 and the labour employed to unload the truck at R7.50 per bag. The entrepreneur will set the selling price at R70.00 per bag. For scenario 6, answer the following questions: 8.1 Calculate the total cost per bag of wood 8.2 If the entrepreneur sells 1 200 bags of wood at R70.00 per bag, what will the revenue for the entrepreneur be? 8.3 If the entrepreneur sells 1 200 bags of wood at R70.00 per bag, is the entrepreneur is currently making a profit or loss?

Question 8 Read the following scenario and answer the succeeding questions. Scenario 6: A young entrepreneur from Belville, identified a gap in the market for selling quality firewood. The best wood, according to the entrepreneur, is from the Northern Cape. The entrepreneur located a supplier willing to sell a bag of firewood for R28.00. To transport the wood to Belville, the entrepreneur hired a transportation truck that can accommodate 1 200 bags per trip from the Northern Cape to Belville. The transportation cost per bag is priced at R3 and the labour employed to unload the truck at R7.50 per bag. The entrepreneur will set the selling price at R70.00 per bag. For scenario 6, answer the following questions: 8.1 Calculate the total cost per bag of wood 8.2 If the entrepreneur sells 1 200 bags of wood at R70.00 per bag, what will the revenue for the entrepreneur be? 8.3 If the entrepreneur sells 1 200 bags of wood at R70.00 per bag, is the entrepreneur is currently making a profit or loss?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 17SQ

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