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timothyashburn8
timothyashburn8
26.06.2021 • 
Business

1.7 Read the scenario below and answer the questions that follow
FANA MANUFACTURER (FM)
Fana Manufacturer produces ladies sandals and sells them to different retailers. The total
cost to produce 45 000 sandals is R180 0000. The management of VC wants to apply
Total Quality Management/TQM in order to improve the quality of their products.
(2)
1.7.1
Calculate the production cost per sandal.
1.7.2
(3)
Calculate how much profit Fana will receive if he all 45 000 sandals are sold. Show
all the calculations.
Use the table below as a guide to answer QUESTION 1.7
PRODUCTION COST PER SANDAL
PROFIT
1.7.3
(5)
Explain to the management of FM the meaning of TQM as part of quality
management system.
[40]
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