Cycle 1 Question Potterhead (Pty) Limited is a pottery company which manufactures a popular clay garden pot. The company is situated in Pretoria however its customer base is nationwide. Their customer base consists of both wholesalers and retailers. The company purchases high quality clay from a supplier with whom they have a long and trustworthy relationship. The clay is then moulded as per the product specifications using both machinery and casual labour. The items are then painted by hand and then baked at high temperatures. The finished item is sold at a price of R1 200 per unit. All these processes take place in a factory building, which is situated near the administration office of which the rental amounts to R 30 000 and R 20 000 respectively.