What was the cost per light fitting manufactured in November? If customers are charged £8.76 per light fitting, how much profit or loss would Soquett Electrical make if 388 light f... What was the cost per light fitting manufactured in November? If customers are charged £8.76 per light fitting, how much profit or loss would Soquett Electrical make if 388 light fittings were sold on one day in November?
Understand the Problem
The question is asking for the cost per light fitting manufactured in November as well as the profit or loss for selling a specific number of light fittings. It involves calculating costs and comparing them to revenue based on the provided values.
Answer
The cost per light fitting is approximately £6.69, and the profit from selling 388 fittings is approximately £1,451.76.
Answer for screen readers
- The cost per light fitting manufactured in November is approximately £6.69.
- If 388 light fittings are sold, the profit is approximately £1,451.76.
Steps to Solve
- Calculate Total Costs
To find the total costs incurred in November, sum the costs of materials, labour, and other relevant overheads.
[ \text{Total Costs} = \text{Materials} + \text{Labour} + \text{Other Relevant Overheads} ]
Substituting the given values:
[ \text{Total Costs} = 60435 + 68478 + 63435 ]
- Calculate Total Batches
Next, find the total number of light fitting batches produced in November, which is given as 1292.
- Calculate Cost per Batch
Now, use the total costs and the number of batches to find the cost per batch using the formula:
[ \text{Cost per Batch} = \frac{\text{Total Costs}}{\text{Batches of Light Fittings}} ]
Substituting the values:
[ \text{Cost per Batch} = \frac{\text{Total Costs}}{1292} ]
- Calculate Cost per Light Fitting
Since each batch produces 60 light fittings, calculate the cost per light fitting:
[ \text{Cost per Light Fitting} = \frac{\text{Cost per Batch}}{60} ]
- Calculate Revenue from Sales
If customers are charged £8.76 per light fitting, then calculate the revenue for selling 388 light fittings:
[ \text{Revenue} = 388 \times 8.76 ]
- Calculate Profit or Loss
Finally, determine the total cost for producing 388 fittings and compare it with the revenue to find profit or loss:
[ \text{Total Cost for 388 Fittings} = 388 \times \text{Cost per Light Fitting} ]
[ \text{Profit or Loss} = \text{Revenue} - \text{Total Cost for 388 Fittings} ]
- The cost per light fitting manufactured in November is approximately £6.69.
- If 388 light fittings are sold, the profit is approximately £1,451.76.
More Information
- The total costs in November consist of materials, labour, and overheads that contribute to the manufacturing costs.
- The calculation demonstrates both the costs incurred and the potential revenue generated based on sales price and quantity sold.
Tips
- Forgetting to add all the costs together before calculating the cost per batch.
- Not dividing by the correct number of light fittings per batch (60 in this case).
- Miscalculating the difference between revenues and costs leading to incorrect profit or loss.
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