Calculator Allowed: Yes



Transcription of this question: Suparman Fish (SF)Gepa Suparman owns and operates four fishing boats in Indonesia. There is a growing demand forcanned (tinned) food, including cans Of fish. Gepa wants to enter the secondary sector by opening asmall factory producing cans Of fish.Gepa’s business will be called Suparman Fish (SF) and will be a private limited company.Gepa will own all Ofthe shares. The factory will be located in a village three miles from the harbour.Because unemployment is high in the village, Gepa should easily find workers for the new factory.In addition to the manager’s salary, workers’ wages, and the cost Offish, supplies, and cans, SF willhave the semi-variable cost Of electricity.Gepa has prepared a four-month cash-flow forecast based on the following information:opening balance month 1: S 15000.• month 1: sales revenue of Sl 000, increasing by per month.manager’s salary: S300 per month.workers’ wages: Sl 75 per worker per month.MonthNumber Of workers2424• variable costs (fish, supplies, and cans) are equal to 40% Of sales revenue.• semi-variable cost Of electricity: fixed cost Of $100 per month, plus a variable cost of SO. 10 perkilowatt hour (kwh)_ Month I usage: 100 kwh, increasing by 10% each month.Although SF would create several jobs in the village, many residents are not happy about the newfactory. The new factory would use chemicals, which cause pollution. Residents are concernedabout the unpleasant smells from the factory. A representative from the local employment Office isconcerned whether Gepa ‘s factory will provide a safe working environment.(b)(c)(d)(e)(f)(i) Define the term secondary sector.(ii) Identify two advantages to SF of being a private limited company.Explain why electricity is a semi-variable cost for SF.Prepare a monthly cash-flow forecast for SF for the first four months Of operation.Calculate SF’s forecast net profit for the first four months Of operation (show allyour working) _Calculate SF’s forecast net profit margin for the first four months Of operation.Examine two potential stakeholder conflicts when Gepa opens his factory.[2 marks][2 marks][2 marks][6 marks][2 marks][1 mark][5 marks]

Leave a Reply