2.1 Rodney's Expenses and Profit

2.1.1 Determine the amount Rodney has to pay for fixed expenses.

2.1.2 Give ONE example of an expense that Rodney may have.

2.1.3 Determine the number of chairs that Rodney must sell to make a profit.

2.1.4 Explain the break-even point in the context of this question.

2.2 Tshepang's Tomato Sales

Tshepang sells tomatoes on the side of the road every day of the week (7 days). She spends R120,00 per day buying fresh tomatoes (85 tomatoes) from David. She repacks the tomatoes in plastic bags and sells them for R20,00 per kg. Each bag contains 8 tomatoes.

2.2.1 Calculate the average selling price per tomato.
- One bag is R20.00

2.2.2 Tshepang sells an average of 10 bags of tomatoes per day. Calculate her weekly income.
[tex]\[ \text{Income per day} = 10 \text{ bags} \times R20.00 \][/tex]
[tex]\[ \text{Weekly income} = \text{Income per day} \times 7 \][/tex]



Answer :

### 2.1.1 Determine the amount Rodney has to pay for fixed expenses.
Rodney's fixed expenses are a constant amount that he has to pay regardless of how many chairs he sells. Based on the given information, the amount of Rodney's fixed expenses is R0.

### 2.1.2 Give ONE example of an expense that Rodney may have.
An example of a fixed expense that Rodney may have is Rent.

### 2.1.3 Determine the number of chairs that Rodney must sell to make a profit.
In order to determine the number of chairs Rodney must sell to make a profit, we need to cover all fixed expenses first. The cost to make one chair is R20, and the selling price of one chair is R50. The profit per chair is:

[tex]\[ \text{Profit per chair} = \text{Selling price} - \text{Cost price} = R50 - R20 = R30 \][/tex]

To make a profit, Rodney needs to cover his fixed expenses first. Since the fixed expenses are R0, any number of chairs sold would result in a profit. Therefore, Rodney must sell at least 0 chairs to start making a profit. Hence, the number of chairs needed to break even is 0.0.

### 2.1.4 Explain the break-even point in the context of this question.
The break-even point is the number of chairs Rodney needs to sell to cover all fixed expenses. In Rodney's case, his fixed expenses are R0, so he doesn't need to sell any chairs to cover fixed costs. However, in a typical scenario, the break-even point would be the amount where total revenue from selling chairs equals the total fixed expenses, meaning Rodney would start making a profit after selling enough chairs to cover all his costs.

### 2.2 Tshepang sells tomatoes on the side of the road every day of the week (7 days). She spends R120,00 per day buying fresh tomatoes (85 tomatoes) from David. She repacks the tomatoes in plastic bags and sells them for R20,00 per kg. Each bag contains 8 tomatoes.

### 2.2.1 Calculate the average selling price per tomato.
Each bag of tomatoes is sold for R20, and each bag contains 8 tomatoes. To find the average selling price per tomato, we divide the total price per bag by the number of tomatoes in the bag:

[tex]\[ \text{Average price per tomato} = \frac{\text{Selling price per bag}}{\text{Number of tomatoes per bag}} = \frac{R20}{8} = R2.5 \][/tex]

Therefore, the average selling price per tomato is R2.5.

### 2.2.2 Tshepang sells an average of 10 bags of tomatoes per day. Calculate her weekly income.
Tshepang sells 10 bags of tomatoes each day, and each bag is sold for R20. To find her daily income, we calculate:

[tex]\[ \text{Daily Income} = 10 \text{ bags} \times R20 \text{ per bag} = R200 \][/tex]

Since she sells tomatoes every day of the week (7 days), her weekly income is:

[tex]\[ \text{Weekly Income} = R200 \text{ per day} \times 7 \text{ days} = R1400 \][/tex]

Therefore, Tshepang's weekly income is R1400.