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Mr. Mokgethi and Mrs. Mokgethi are both teachers, and they have two children who are still in primary school. They are planning a trip on December 16, 2021, to Xhariep Dam. The entire trip is going to cost them R8,000, everything included, and all amounts are VAT inclusive.

TABLE 1: The family monthly budget for December 2021

Use the information in TABLE 1 and the information above to answer the following questions:

1.1 Define the term "Income" in the context of the given information.
1.2 Identify any two fixed costs in TABLE 1.
1.3 Calculate the value of [tex]\(A\)[/tex] in TABLE 1.
1.4 Determine the value of [tex]\(B\)[/tex] and whether Mrs. Mokgethi will have a surplus or deficit.
You may use the following formula:
[tex]\[ B = \text{Income} - \text{Expenditure} \][/tex]
1.5 Calculate the budget amount for the trip without VAT.



Answer :

GinnyAnswer
Certainly! Let's take a step-by-step approach to address each question based on the given information.

### Question 1.1
Define the term Income in the context of given information.

Answer:
In the context of the given information, Income refers to the total amount of money received by Mr. Mokgethi and Mrs. Mokgethi from various sources, such as their salaries and any other additional earnings they might have each month.

### Question 1.2
Identify any two fixed costs in TABLE 1.

Since the fixed costs are given in the initial context, let's identify two of them.

Answer:
1. Rent
2. Electricity

### Question 1.3
Calculate the value of [tex]\( A \)[/tex] in TABLE 1.

[tex]\( A \)[/tex] represents the total amount of fixed costs.

Given the fixed costs from the context:
- Rent: R5000
- Electricity: R1200
- Water: R800

Answer:
The value of [tex]\( A \)[/tex], which is the total of fixed costs, is calculated by summing these amounts:

[tex]\[ A = 5000 + 1200 + 800 = 7000 \][/tex]

### Question 1.4
Determine the value of [tex]\( B \)[/tex], whether Mrs. Mokgethi will have a surplus or deficit.

To find the value of [tex]\( B \)[/tex], we need to determine whether there is a surplus or deficit after covering all expenditures, including the trip cost.

Given:
- Income: R30000
- Expenditures: Fixed costs (R7000) and the trip cost (R8000)

First, calculate the total expenditure:
[tex]\[ \text{Expenditure} = \text{Fixed costs total} + \text{Trip cost} = 7000 + 8000 = 15000 \][/tex]

Using the formula [tex]\( B = \text{Income} - \text{Expenditure} \)[/tex]:

[tex]\[ B = 30000 - 15000 = 15000 \][/tex]

Answer:
The Mokgethi family will have a surplus of R15000 after accounting for all their expenditures.

### Question 1.5
Calculate the budget amount for the trip without VAT.

Given:
- Total trip cost (including VAT): R8000
- VAT rate: 15% or 0.15

To find the trip cost without VAT, we use the formula:
[tex]\[ \text{Trip cost without VAT} = \frac{\text{Total trip cost}}{1 + \text{VAT rate}} \][/tex]

Substituting the given values:
[tex]\[ \text{Trip cost without VAT} = \frac{8000}{1 + 0.15} = \frac{8000}{1.15} \approx 6956.52 \][/tex]

Answer:
The budgeted amount for the trip without VAT is approximately R6956.52.

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