A business has recently purchased a tonne of PVC material at a cost of £350. The material could be sold immediately for £320 or it could be used as a substitute for another type of material that costs £310 per tonne. The PVC material is in continuous use within the business and its replacement cost is £360 per tonne. What is the relevant cost of the material?   Select one: a. £630 b.

You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021. R R Unit selling price 160 Less: Direct materials 50 Direct labour 30 Fixed Overheads: Admin 4.00 Rent 7.50 Rates 2.50 Depreciation 1.00 95 Mark up 65 Your initial plan is to produce 200 units per month and to start selling in August 2021. The forecast of sales you have calculated is: August September October November December Unit 50 80 120 180 200 All sales will be made on 30 days credit. Machinery will cost you R24, 000. This you propose financing on hire purchase terms; deposit payable July 1, 2021, R2,400; followed by 24 monthly instalments of R1,000 each. Raw materials suppliers will deliver an equal amount of parts at the beginning of each…

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A. Calculate the gross profit margin for Pearson and litt for 2020  B. Explain the results of the gross margin profit calculation