Franky is running a small business that produces handmade candles. She has

gathered the following information for the month of October:

- Selling price per candle: R5

- Number of candles sold: 500

- Total variable cost for producing the candles: R1,500

- Total fixed costs for the month: R500

Using the information provided, calculate the following:

a) Total Revenue (2 Marks)

b) Total Cost (2 Marks)

c) Variable Cost (2 Marks)

d) Fixed Cost

To calculate each of the requested values, we'll use the information provided:

### Given Information:
- Selling price per candle: R5
- Number of candles sold: 500
- Total variable cost for producing the candles: R1,500
- Total fixed costs for the month: R500

### Calculations:

#### a) Total Revenue
Total Revenue is calculated as the selling price per candle multiplied by the number of candles sold.

\[
\text{Total Revenue} = \text{Selling Price per Candle} \times \text{Number of Candles Sold}
\]

\[
\text{Total Revenue} = 5 \times 500 = \text{R}2500
\]

#### b) Total Cost
Total Cost is the sum of total variable costs and total fixed costs.

\[
\text{Total Cost} = \text{Total Variable Cost} + \text{Total Fixed Cost}
\]

\[
\text{Total Cost} = 1500 + 500 = \text{R}2000
\]

#### c) Variable Cost
The Variable Cost is already provided in the problem statement:

\[
\text{Variable Cost} = \text{R}1500
\]

#### d) Fixed Cost
The Fixed Cost is also given directly:

\[
\text{Fixed Cost} = \text{R}500
\]

### Summary:
a) **Total Revenue** = R2,500  
b) **Total Cost** = R2,000  
c) **Variable Cost** = R1,500  
d) **Fixed Cost** = R500  

Would you like more details or have any questions?

### Related Questions:
1. What is Franky's profit for the month of October?
2. How would the profit change if the number of candles sold increased by 100?
3. What is the break-even point in terms of the number of candles sold?
4. How does changing the selling price to R6 per candle affect total revenue?
5. What happens to the total cost if variable costs increase by 10%?

**Tip:** When calculating business costs, always distinguish between fixed and variable costs to better understand your profit margins.

Franky is running a small business that produces handmade candles. She has gathered the following information for the month of October: - Selling price per candle: R5 - Number of candles sold: 500 - Total variable cost for producing the candles: R1,500 - Total fixed costs for the month: R500 Using the information provided, calculate the following: a) Total Revenue b) Total Cost c) Variable Cost d) Fixed Cost

Calculate total revenue, total cost, variable cost, and fixed cost for Franky's handmade candle business using simple arithmetic. This example explains key concepts like revenue calculation and cost analysis, suitable for students in Grades 5-7.

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