Lucia is a local business owner and has started selling atchar (A spicy condiment, often eaten with
curry). Below is her business logo and the items she needs to get her business running:
MAGOGO
Atchar
She buys the following items:
° Bucket of 20-litre atchar for R200
°
Spices for R100
°
10 x2-litre buckets for R40
.
She sells each 2-litre bucket for R60
NOTE: All prices include 15% VAT
Use the information above to answer the questions that follow.
1.1
Define the term profit according to the given context
(2)
1.2
Calculate the VAT exclusive amount on Lucia's total expenses.
(4)
1.3
Lucia claimed that she will make a profit of R300 from a 20-litre bucket. Verify if her
claim is valid.
(6)
[12]
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