Lucy’s Jewels is a local jewellery business making necklaces from round pebbles found on Dorset beaches. Once the pebbles have been collected, they are prepared and made into items of jewellery, by adding colour and glass beads.
Lucy’s Jewels makes 600 items a month. The Average Selling Price per item is £30. Variable costs per necklace are £15 & their Fixed costs per month are £1,000.
What are the monthly total costs for Lucy’s Jewels?
Select ONE answer:
- £8,500
- £10,000
- £13,000
- £14,000
Show the workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple choice question is suitable for Business Studies KS4 & KS3 classes
The answer is 2:
- is not correct because the wrong figures have been used.
- TC = TVC + TFC or (600 * £15) + £1,000 = £10,000
- is not correct because the wrong figures have been used.
- is not correct because the wrong figures have been used.
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