Assume that the following table represents a production schedule for Rhithabile Enterprises, a South African company that produces a cheaper 70% alcohol hand sanitizer for the local market to fight COVID19. The company started operating in January 2021 and output started coming out in February. Month Quantity (Litres) Total Revenue in Rands Total Cost in Rands (TC)‘000’ Profit Average Revenue Average production Cost (TR) ‘000’ (R) ‘000’ (R) (R) Jan 0 0 200 -200 - - Feb 1000 - 300 100 - - March 2000 800 500 - - - April - 1200 - 400 - - May 4000 1600 1200 - - - June - 2000 - 300 - - July 6000 - 2300 - - - Aug 7000 2800 3000 - - - Sept 9000 3200 - -600 - - Questions: 1a. Complete the table by calculating the missing figures. 1b. At what quantity (Litres) is revenue (TR) maximised? 1c. In which month/s and at what quantities was profit maximised? 1d. The profit figure for the month of January is –R200. Explain why?
Assume that the following table represents a production schedule for Rhithabile Enterprises, a South African company that produces a cheaper 70% alcohol hand sanitizer for the local market to fight COVID19. The company started operating in January 2021 and output started coming out in February. Month Quantity (Litres) Total Revenue in Rands Total Cost in Rands (TC)‘000’ Profit Average Revenue Average production Cost (TR) ‘000’ (R) ‘000’ (R) (R) Jan 0 0 200 -200 - - Feb 1000 - 300 100 - - March 2000 800 500 - - - April - 1200 - 400 - - May 4000 1600 1200 - - - June - 2000 - 300 - - July 6000 - 2300 - - - Aug 7000 2800 3000 - - - Sept 9000 3200 - -600 - - Questions: 1a. Complete the table by calculating the missing figures. 1b. At what quantity (Litres) is revenue (TR) maximised? 1c. In which month/s and at what quantities was profit maximised? 1d. The profit figure for the month of January is –R200. Explain why?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Assume that the following table represents a production schedule for Rhithabile Enterprises, a South African company that produces a cheaper 70% alcohol hand sanitizer for the local market to fight COVID19. The company started operating in January 2021 and output started coming out in February.
| Month | Quantity (Litres) | Total Revenue in Rands | Total Cost in Rands (TC)‘000’ | Profit | Average Revenue | Average production Cost |
| (TR) ‘000’ | (R) ‘000’ | (R) | (R) | |||
| Jan | 0 | 0 | 200 | -200 | - | - |
| Feb | 1000 | - | 300 | 100 | - | - |
| March | 2000 | 800 | 500 | - | - | - |
| April | - | 1200 | - | 400 | - | - |
| May | 4000 | 1600 | 1200 | - | - | - |
| June | - | 2000 | - | 300 | - | - |
| July | 6000 | - | 2300 | - | - | - |
| Aug | 7000 | 2800 | 3000 | - | - | - |
| Sept | 9000 | 3200 | - | -600 | - | - |
Questions:
1a. Complete the table by calculating the missing figures.
1b. At what quantity (Litres) is revenue (TR) maximised?
1c. In which month/s and at what quantities was profit maximised?
1d. The profit figure for the month of January is –R200. Explain why?
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