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Views: 5,428 The Department of Health advertised for companies to tender to supply sterile disposable rubber gloves to a local clinic. Rubber gloves come in different sizes and are generally sold in boxes containing 50 pairs of the same size. The clinic required 100 boxes of each of the following sizes of gloves: 6½, 7, 7½ and 8. Mvelenhle Sciences Co-operative which is 100% black-owned, decided to submit a tender to the Department of Health. It costs Mvelenhle Sciences R98,00 per box (excluding VAT) to manufacture the gloves, regardless of the size of the gloves. Mvelenhle Sciences first adds a profit of 25% on the price of each box, and then charges a further 20% for the transport and administration costs. a) The table below shows Mvelenhle Sciences format for calculating the selling price of their gloves. Use the table to determine the values of items A, B, C, D, E, F and G. Show all your calculations. b) The Department of Health uses the following formula to make decisions about which company will be granted the tender. Ps = 80(1 - (Pt - Pmin)/Pmin) + 2.5 The lowest acceptable tender value (Pmin) for rubber gloves is R56 000. Use the total selling price (Pt.) calculated in the above table to calculate Ps, the number of points scored by Mvelenhle Sciences Co-operative. c) The total selling price tendered (Pt.) by another company, Vanessa Enterprises, which is 100% white-owned was R66 000. The Department of Health announced that the tender that scored the highest number of points will be awarded the contract. Show, with the aid of the formula given in QUESTION b), whether Mvelenhle Sciences or Vanessa Enterprises will be awarded the tender.
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