Answer :
Certainly! Let's address each part of the question step-by-step.
### 1.1.1 Define the concept of "Income" in this context.
In this context, "Income" refers to the total amount of money received by an individual or entity over a specified period, typically a month. This amount is the gross inflow of funds before any expenses or deductions are accounted for. It acts as the starting point for budgeting and financial planning, indicating the total earnings that can be allocated towards various expenditures and savings.
(2 marks)
### 1.1.2 Distinguish the difference between fixed expenses and variable expenses.
- Fixed Expenses: These are costs that do not change from month to month. They remain constant regardless of the level of production or consumption. Examples include rent, mortgage payments, insurance premiums, and certain utility bills. Fixed expenses are predictable and can be easily planned for.
- Variable Expenses: These are costs that can fluctuate from month to month based on usage and consumption levels. Examples include groceries, electricity, entertainment, and fuel. Variable expenses are more difficult to predict and can vary widely, making budgeting for them a bit more challenging.
(4 marks)
### 1.1.3 Determine the values of [tex]\( A , B \)[/tex], and [tex]\( C \)[/tex] from TABLE 1.
- A: Given as the Total Income, [tex]\(A = 5675\)[/tex].
- Income Left Over (C): This can be found by subtracting the Total Expenditure (R70416.87) from the Total Income (5675).
[tex]\[ C = 5675 - 70416.87 = -64741.87 \][/tex]
So, [tex]\(C = -64741.87\)[/tex].
(6 marks)
### 1.1.4 Determine the ratio of Electricity to Grocery in its simplest form.
Given values:
- Electricity Expense: 500
- Grocery Expense: 1000
To determine the simplest form of the ratio, we divide both numbers by their greatest common divisor (GCD).
[tex]\[ \text{GCD of 500 and 1000 is 500}. \][/tex]
Dividing both by 500, we get:
[tex]\[ \frac{500}{500} : \frac{1000}{500} = 1 : 2 \][/tex]
Therefore, the simplest form of the ratio of Electricity to Grocery is [tex]\(1 : 2\)[/tex].
(3 marks)
### 1.1.5 Name ONE variable expense that can fall under "other".
One example of a variable expense that can fall under "other" is dining out/eating out. This is an expense that can vary from month to month depending on how frequently meals are purchased outside of the home.
(1 mark)
### 1.1.6 Calculate the bank fees they pay on the debit order every month.
The formula provided is:
[tex]\[ \text{Fees} = R 3.65 + 0.42\% \text{ of the value of the debit order} \][/tex]
Given the Total Expenditure (debit order value) of R70416.87, let's apply it to the formula:
Step-by-step calculation:
1. Calculate [tex]\(0.42\%\)[/tex] of R70416.87:
[tex]\[ 0.42\% \text{ of } 70416.87 = \frac{0.42}{100} \times 70416.87 = 0.0042 \times 70416.87 = 295.75 \][/tex]
2. Add the fixed component of R3.65:
[tex]\[ \text{Fees} = 3.65 + 295.75 = 299.40 \][/tex]
Therefore, the bank fees they pay on the debit order every month are R299.40.
(3 marks)
### 1.1.1 Define the concept of "Income" in this context.
In this context, "Income" refers to the total amount of money received by an individual or entity over a specified period, typically a month. This amount is the gross inflow of funds before any expenses or deductions are accounted for. It acts as the starting point for budgeting and financial planning, indicating the total earnings that can be allocated towards various expenditures and savings.
(2 marks)
### 1.1.2 Distinguish the difference between fixed expenses and variable expenses.
- Fixed Expenses: These are costs that do not change from month to month. They remain constant regardless of the level of production or consumption. Examples include rent, mortgage payments, insurance premiums, and certain utility bills. Fixed expenses are predictable and can be easily planned for.
- Variable Expenses: These are costs that can fluctuate from month to month based on usage and consumption levels. Examples include groceries, electricity, entertainment, and fuel. Variable expenses are more difficult to predict and can vary widely, making budgeting for them a bit more challenging.
(4 marks)
### 1.1.3 Determine the values of [tex]\( A , B \)[/tex], and [tex]\( C \)[/tex] from TABLE 1.
- A: Given as the Total Income, [tex]\(A = 5675\)[/tex].
- Income Left Over (C): This can be found by subtracting the Total Expenditure (R70416.87) from the Total Income (5675).
[tex]\[ C = 5675 - 70416.87 = -64741.87 \][/tex]
So, [tex]\(C = -64741.87\)[/tex].
(6 marks)
### 1.1.4 Determine the ratio of Electricity to Grocery in its simplest form.
Given values:
- Electricity Expense: 500
- Grocery Expense: 1000
To determine the simplest form of the ratio, we divide both numbers by their greatest common divisor (GCD).
[tex]\[ \text{GCD of 500 and 1000 is 500}. \][/tex]
Dividing both by 500, we get:
[tex]\[ \frac{500}{500} : \frac{1000}{500} = 1 : 2 \][/tex]
Therefore, the simplest form of the ratio of Electricity to Grocery is [tex]\(1 : 2\)[/tex].
(3 marks)
### 1.1.5 Name ONE variable expense that can fall under "other".
One example of a variable expense that can fall under "other" is dining out/eating out. This is an expense that can vary from month to month depending on how frequently meals are purchased outside of the home.
(1 mark)
### 1.1.6 Calculate the bank fees they pay on the debit order every month.
The formula provided is:
[tex]\[ \text{Fees} = R 3.65 + 0.42\% \text{ of the value of the debit order} \][/tex]
Given the Total Expenditure (debit order value) of R70416.87, let's apply it to the formula:
Step-by-step calculation:
1. Calculate [tex]\(0.42\%\)[/tex] of R70416.87:
[tex]\[ 0.42\% \text{ of } 70416.87 = \frac{0.42}{100} \times 70416.87 = 0.0042 \times 70416.87 = 295.75 \][/tex]
2. Add the fixed component of R3.65:
[tex]\[ \text{Fees} = 3.65 + 295.75 = 299.40 \][/tex]
Therefore, the bank fees they pay on the debit order every month are R299.40.
(3 marks)
