Soquet Electrical manufactures identical light fittings in batches of 60. During November, Soquet Electrical produced 1,252 batches. The total costs incurred in November were £603,... Soquet Electrical manufactures identical light fittings in batches of 60. During November, Soquet Electrical produced 1,252 batches. The total costs incurred in November were £603,348. 1. What was the cost per light fitting manufactured in November? 2. If customers are charged £8.76 per light fitting, how much profit or loss would Soquet Electrical make if 388 light fittings were sold on one day in November? Read more

Steps to Solve

1. Determine Total Costs
   The total costs incurred in November are given as £163,348. This includes materials, labor, and overhead.

2. Calculate Total Light Fittings Produced
   Each batch consists of 60 light fittings, and a total of 1,252 batches were produced.
   The total number of light fittings is calculated as:
   $$ \text{Total light fittings} = \text{Batches} \times \text{Fittings per batch} = 1,252 \times 60 $$

3. Calculate Total Light Fittings
   Calculating the total:
   $$ \text{Total light fittings} = 1,252 \times 60 = 75,120 $$

4. Calculate Cost Per Light Fitting
   To find the cost per light fitting, divide the total costs by the total number of light fittings:
   $$ \text{Cost per light fitting} = \frac{\text{Total costs}}{\text{Total light fittings}} = \frac{163,348}{75,120} $$

5. Calculate Selling Price for 388 Light Fittings
   The selling price per light fitting is £8.76.
   To calculate total revenue from selling 388 fittings:
   $$ \text{Total revenue} = \text{Quantity sold} \times \text{Selling price} = 388 \times 8.76 $$

6. Calculate Total Revenue
   Calculating the total revenue:
   $$ \text{Total revenue} = 388 \times 8.76 = 3,397.88 $$

7. Calculate Total Costs for 388 Light Fittings
   To find total costs for 388 light fittings, calculate the cost for this quantity:
   $$ \text{Total costs for 388} = \text{Cost per light fitting} \times \text{Quantity sold} $$

8. Determine Profit or Loss
   Finally, determine profit or loss by subtracting total costs from total revenue:
   $$ \text{Profit/Loss} = \text{Total revenue} - \text{Total costs for 388} $$