Sure! Let's go through each question one by one.
### 1.1.1 Briefly explain the difference between fixed and variable expenses. (2 marks)
Fixed expenses are those that do not change month to month, such as rent, car instalments, and insurance. These expenses are predictable and remain constant over time.
Variable expenses, on the other hand, can fluctuate from month to month based on usage or consumption. Examples include groceries and fuel, where the amount spent can vary each month.
### 1.1.2 Determine the value of A, the total monthly income. (2 marks)
The total monthly income, denoted by [tex]\( A \)[/tex], is the sum of all expenses listed in the table, including both fixed and variable costs. Given the numbers provided:
[tex]\[
\begin{align*}
\text{Rent \& electricity} & : \text{R5 200,00} \\
\text{Rent} & : \text{R4 500,00} \\
\text{Groceries} & : \text{Variable, assumed R0 for calculation} \\
\text{Car insurance} & : \text{R1 200,00} \\
\text{Cell phone contract (2 phones)} & : \text{R2 400,00} \\
\text{Medical Aid (family)} & : \text{Variable, assumed R0 for calculation} \\
\text{School fees (2 children)} & : \text{R2 350,00} \\
\text{Fuel} & : \text{R1 400,00} \\
\text{Entertainment} & : \text{R3 500,00} \\
\text{Car instalment} & : \text{R25 075,00} \\
\end{align*}
\][/tex]
Summing these values:
[tex]\[
\text{Total expenses} = \text{R5 200} + \text{R4 500} + \text{R1 200} + \text{R2 400} + \text{R2 350} + \text{R1 400} + \text{R3 500} + \text{R25 075}
\][/tex]
The total monthly income [tex]\( A \)[/tex] equals:
[tex]\[
A = 45625
\][/tex]
### 1.1.3 List TWO variable expenses. (2 marks)
Two examples of variable expenses are:
- Groceries
- Fuel
### 1.1.4 How much does the family pay for the school fees for one child for the month? (4 marks)
The total school fees for two children is R2 350. To find out how much they pay for one child:
[tex]\[
\text{School fees for one child} = \frac{\text{Total school fees for two children}}{2} = \frac{R2 350}{2} = R1 175
\][/tex]
### 1.1.5 Will the Makau family be able to save the expected amount for a month for their holiday? Show all calculations. (3 marks)
Assuming that the family’s monthly income is equal to the total monthly expenses (R45 625), and we are not given any information about the expected savings. We will consider that if income is equal to expenses, the family cannot save additional money unless they reduce some expenses.
Given the total monthly income [tex]\( A = R45 625 \)[/tex] and assuming expected savings is zero, the family will be able to save money because they are currently breaking even:
[tex]\[
\text{Can save} = \text{True (since income >= expenses)}
\][/tex]
They can indeed save more for their holiday by reducing some expenses.
### 1.1.6 Mention ONE way in which the family can save more money for their holiday. (2 marks)
One way the family can save more money for their holiday is by reducing their entertainment budget. For example, if they cut down on entertainment expenses, they can allocate the saved amount towards their holiday savings.
