Short Case Study Instruction: Read the case study below and answer questions that follow
Joe is the new product manager at a chain of takeaway food stores. He is planning to introduce a new type of 'fast food' - a pizza or a curry. He has two product options, but the business can only afford to buy the equipment and advertising material needed for one of these options. He has undertaken some market research and forecasted the main costs for the two product options. He has asked you to help him complete the following tables.
Forecasts for one year	Pizza option	Curry Option
Sales Revenue	50,000 units @ R 3	40,000 units @ R 5
Cost of Goods Sold	Unit cost of R 1 each	Unit cost of R 2 each
Gross Profit	?	?
Annual equipment costs	R 13,000	R 12,000
Annual advertising costs	R 15,000	R20,000
Other expenses	R 13,000	R 15,000
Net Profit	?	?
5.1	Calculate the gross profit and net profit of both product options.	(8)
5.2	Considering the figures obtained from your answer, discuss and justify which option Joe should choose.	(12)