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1.6. Clearly indicate the breakeven point on the graph with the letter 2 A. 1.6. Write down the number of boxes the Gr 11 's will need to sell to 3 break- even. 1.6. Use the graphs to determine the profit / loss they will make if they only sell 50 boxes. 1.6. \( \begin{array}{l}\text { Provide one possible reason why the committee would choose } \\ \text { to buy enough materials for } 150 \text { boxes rather than buying per } \\ \text { single box. }\end{array} \) Using all the above information and calculations, critically comment on the financial feasibility of making and selling Women's day gift

Ask by Jimenez Brooks. in South Africa
Feb 19,2025

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To determine the breakeven point, calculate the number of boxes needed to break even, assess the profit or loss from selling 50 boxes, and consider reasons for bulk purchasing materials. Based on these calculations, evaluate the financial feasibility of making and selling Women's Day gifts.

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Beyond the Answer

To find the breakeven point on a graph, look for where the total revenue line intersects the total cost line. This point indicates the volume of sales (in your case, the number of boxes) necessary to cover all costs. Clearly marking this point with the letter 'A' helps visualize it for anyone analyzing the graph. If the Grade 11s sell only 50 boxes, you can determine their financial outcome by plugging this number into your revenue and cost formulas derived from the graph. The difference between total revenue from the sale of 50 boxes and total costs will reveal whether they are in profit or at a loss. It's essential to analyze what's happening at this sales volume to understand their financial health. Buying materials for 150 boxes reduces costs via bulk purchasing, as it often leads to discounts per unit compared to buying individual boxes. This strategy also ensures that they have enough stock to accommodate demand, preventing lost sales opportunities if the initial stock runs out. It’s a smart move to maximize profit potential while saving money in the process! Overall, to ensure the success in making and selling Women's Day gifts, the committee needs to weigh production costs, anticipated sales, and potential market demand against their financial goals. It’s crucial to keep all these factors in mind to avoid pitfalls that could lead to unexpected losses!

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