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### Question 1
Calculate the profit percentage of an item if:
- Cost price per unit is R7,
- Unit cost of sales is R10,
- Mark-up is R4,
- Selling price is R14.

### Question 2
Calculate the break-even point of a trading company that sells identical dolls:
- Cost price per doll is R39,
- Variable cost per doll (packaging) is R1,
- Selling price per doll is R100,
- Fixed costs are R12,000 per month.

How many dolls does the company need to sell each month to reach the break-even point?



Answer :

GinnyAnswer
Sure, let's tackle each part of the problem step by step:

### Part 1: Calculating the Profit Percentage

1. Given Values:
- Cost Price per Unit: R7
- Selling Price: R14

2. Computing Profit:
- Profit is calculated as the difference between the Selling Price and the Cost Price.
- Profit = Selling Price - Cost Price = R14 - R7 = R7

3. Computing Profit Percentage:
- Profit Percentage is calculated as (Profit / Cost Price) 100.
- Profit Percentage = (R7 / R7) 100 = 100.0%

Therefore, the profit percentage of the item is 100.0%.

### Part 2: Calculating the Break-Even Point

1. Given Values:
- Cost Price per Doll: R39
- Packaging Cost per Doll: R1
- Selling Price per Doll: R100
- Fixed Costs per Month: R12,000

2. Calculating the Variable Cost per Doll:
- Total Variable Cost per Doll = Cost Price per Doll + Packaging Cost per Doll
- Variable Cost per Doll = R39 + R1 = R40

3. Calculating the Profit per Doll:
- Profit per Doll is calculated as the difference between the Selling Price per Doll and the Variable Cost per Doll.
- Profit per Doll = Selling Price per Doll - Variable Cost per Doll = R100 - R40 = R60

4. Calculating the Break-Even Point:
- Break-Even Point is calculated as Fixed Costs / Profit per Doll.
- Break-Even Point = R12,000 / R60 = 200.0 dolls

Therefore, the company needs to sell 200 dolls each month to reach the break-even point.

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