rom humble beginnings in a garage in Pretoria in 1981, Der Lederhändler has grown into a well-established modern factory in George that manufactures rustic and elegant genuine handmade leather products. Their renowned factory shop on the premises has become an absolute ‘must’ for tourists to visit! Apart from the Factory Shop they have three other outlets, one at the Pick ‘n Pay Centre in George, one at the Langeberg Mall in Mossel Bay and the other at Garden Route Mall George. Some of their products, such as their wildlife-themed leather bracelets, have become popular souvenirs at tourist centres, hotels and guest houses throughout the Southern Cape.

The following information relates to Der Lederhändler’s wildlife-themed leather bracelets:

Total fixed costs = R280 000 Total variable costs = R 45 000 Volume to be manufactured and sold = 20 000 units Mark-up on cost price = 30% Question 1Not yet answeredMarked out of 1.00Not flaggedFlag question Question text Assume you are a cost consultant and the management of Der Lederhändler approached you to assist them with their cost calculations. Der Lederhändler’s fixed costs per leather bracelet amounts to:

a. R18.67 per unit.

b. R28.00 per unit.

c. R21.67 per unit.

d. R16.25 per unit.

e. R14.00 per unit.