Answer :
Certainly! Let's go through each part of the question and solve it step-by-step based on the provided information.
### 1.1 Definition of Income
Income refers to the total amount of money that is received regularly, in this case, the monthly salary of Mr. and Mrs. Mokgethi. Therefore, their income in this context is their combined monthly salary totaling R32,750.
### 1.2 Identification of Fixed Costs
Fixed costs are expenses that do not vary with consumption or use over time. Based on TABLE 1, two examples of fixed costs are:
1. Rent: R5,000.00
2. Car Instalment: R3,722.50
These costs remain the same every month.
### 1.3 Calculation of Value A in TABLE 1
To find the total expenditure (Value A) for December 2021, we need to sum all the individual costs listed:
- Rent: R5,000.00
- Groceries: R3,580.30
- Water: R395.70
- Electricity: R950.00
- Car Instalment: R3,722.50
- Petrol: R1,100.00
- Insurance: R792.40
- Cell phone Contract: R450.00
- Entertainment: R11,500.00
Adding these values together gives us the total expenditure:
[tex]\[ \text{Total Expenditure} = R5,000.00 + R3,580.30 + R395.70 + R950.00 + R3,722.50 + R1,100.00 + R792.40 + R450.00 + R11,500.00 = R27,490.90 \][/tex]
So, the value of A is R27,490.90.
### 1.4 Determination of Value B (Surplus/Deficit)
To find out if there is a surplus or deficit, we use the formula [tex]\( B = \text{Income} - \text{Expenditure} \)[/tex].
Given the income is R32,750 and the expenditure is R27,490.90:
[tex]\[ B = R32,750.00 - R27,490.90 = R5,259.10 \][/tex]
Since the result is positive, it means Mrs. Mokgethi will have a surplus of R5,259.10.
### 1.5 Calculation of the Budget Amount for the Trip Without VAT
The entire trip cost is R8,000 (inclusive of VAT).
Since VAT is 15%, we need to find the pre-VAT cost:
Let [tex]\( x \)[/tex] be the cost without VAT. Then:
[tex]\[ x + 0.15x = 8000 \][/tex]
[tex]\[ 1.15x = 8000 \][/tex]
[tex]\[ x = \frac{8000}{1.15} \approx 6956.52 \][/tex]
So, the budget amount for the trip without VAT is approximately R6,956.52.
Therefore, the answers are as follows:
1. Income is the total monthly salary, R32,750.
2. Fixed costs: Rent (R5,000.00) and Car Instalment (R3,722.50).
3. The value of A is R27,490.90.
4. The value of B is R5,259.10 (Surplus).
5. The budget amount for the trip without VAT is R6,956.52.
### 1.1 Definition of Income
Income refers to the total amount of money that is received regularly, in this case, the monthly salary of Mr. and Mrs. Mokgethi. Therefore, their income in this context is their combined monthly salary totaling R32,750.
### 1.2 Identification of Fixed Costs
Fixed costs are expenses that do not vary with consumption or use over time. Based on TABLE 1, two examples of fixed costs are:
1. Rent: R5,000.00
2. Car Instalment: R3,722.50
These costs remain the same every month.
### 1.3 Calculation of Value A in TABLE 1
To find the total expenditure (Value A) for December 2021, we need to sum all the individual costs listed:
- Rent: R5,000.00
- Groceries: R3,580.30
- Water: R395.70
- Electricity: R950.00
- Car Instalment: R3,722.50
- Petrol: R1,100.00
- Insurance: R792.40
- Cell phone Contract: R450.00
- Entertainment: R11,500.00
Adding these values together gives us the total expenditure:
[tex]\[ \text{Total Expenditure} = R5,000.00 + R3,580.30 + R395.70 + R950.00 + R3,722.50 + R1,100.00 + R792.40 + R450.00 + R11,500.00 = R27,490.90 \][/tex]
So, the value of A is R27,490.90.
### 1.4 Determination of Value B (Surplus/Deficit)
To find out if there is a surplus or deficit, we use the formula [tex]\( B = \text{Income} - \text{Expenditure} \)[/tex].
Given the income is R32,750 and the expenditure is R27,490.90:
[tex]\[ B = R32,750.00 - R27,490.90 = R5,259.10 \][/tex]
Since the result is positive, it means Mrs. Mokgethi will have a surplus of R5,259.10.
### 1.5 Calculation of the Budget Amount for the Trip Without VAT
The entire trip cost is R8,000 (inclusive of VAT).
Since VAT is 15%, we need to find the pre-VAT cost:
Let [tex]\( x \)[/tex] be the cost without VAT. Then:
[tex]\[ x + 0.15x = 8000 \][/tex]
[tex]\[ 1.15x = 8000 \][/tex]
[tex]\[ x = \frac{8000}{1.15} \approx 6956.52 \][/tex]
So, the budget amount for the trip without VAT is approximately R6,956.52.
Therefore, the answers are as follows:
1. Income is the total monthly salary, R32,750.
2. Fixed costs: Rent (R5,000.00) and Car Instalment (R3,722.50).
3. The value of A is R27,490.90.
4. The value of B is R5,259.10 (Surplus).
5. The budget amount for the trip without VAT is R6,956.52.