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Per month:
Rent
●
●
.
£1400
£800
£9000
Other costs £800
1. Draw up a table of costs and revenue
Rates
Salaries
Fixed costs
Variable
Coles Coats Ltd manufacture wax jackets in a small factory on the
outskirts of Hartlepool. Their sole customer is a major UK chain
store, which purchase 1000 jackets each month.
The factory's
capacity is 1250 jackets per month. The company charges the chain
store £40.00 per jacket.
costs
Total costs
Revenue
0
500
The manufacture of each jacket costs:
Material
£12.00
£13.00
• Labour
1000
1500
