Answer :
### 1.1 Refer to the table above and answer the questions that follow.
#### 1.1.1 Briefly explain the difference between fixed and variable expenses. (2)
Fixed expenses are costs that remain constant each month and do not vary based on consumption or usage. Examples include rent, car insurance, and cell phone contracts. These expenses are predictable and regular, making it easier for individuals to plan their budgets around them.
Variable expenses, on the other hand, fluctuate each month and can vary based on factors such as consumption, usage, or personal choices. Examples include groceries, entertainment, and fuel. These expenses can be harder to predict and may require more careful management to stay within a budget.
#### 1.1.2 Determine the value of [tex]$A$[/tex], the total monthly income. (2)
Celina's Salary = R12,000
Zane's Salary = R14,300
Total Monthly Income (A) = Celina's Salary + Zane's Salary
Calculation:
A = R12,000 + R14,300 = R26,300
#### 1.1.3 List TWO variable expenses. (2)
Two examples of variable expenses from the table are:
1. Groceries
2. Entertainment
#### 1.1.4 How much does the family pay for the school fees for one child for the month? (4)
Total Monthly Expenses = R25,075
Sum of Known Expenses = R1,500 (Water & electricity) + R5,200 (Rent) + R4,500 (Groceries) + R875 (Car insurance) + R1,200 (Cell phone contract) + R2,400 (Medical Aid) + R2,350 (Fuel) + R1,400 (Entertainment) + R3,500 (Car instalment)
Calculation of Sum of Known Expenses:
Sum of Known Expenses = R1,500 + R5,200 + R4,500 + R875 + R1,200 + R2,400 + R2,350 + R1,400 + R3,500 = R22,925
Total School Fees for Two Children = Total Monthly Expenses - Sum of Known Expenses
Calculation of Total School Fees:
Total School Fees for Two Children = R25,075 - R22,925 = R2,150
School Fees for One Child = Total School Fees for Two Children / 2
Calculation of School Fees for One Child:
School Fees for One Child = R2,150 / 2 = R1,075
#### 1.1.5 Will the Makau family be able to save the expected amount for a month for their holiday? Show all calculations. (3)
Required Monthly Savings = R2,000
Total Monthly Income = R26,300
Total Monthly Expenses = R25,075
Remaining Income for Savings = Total Monthly Income - Total Monthly Expenses
Calculation of Remaining Income:
Remaining Income for Savings = R26,300 - R25,075 = R1,225
Since the remaining income (R1,225) is less than the required monthly savings (R2,000), the Makau family will not be able to save the expected amount for the month for their holiday.
#### 1.1.6 Mention ONE way in which the family can save more money for their holiday. (2)
One way the family can save more money is to reduce their entertainment expenses. By cutting down on non-essential spending on entertainment, they can increase their savings towards their holiday.
#### 1.1.1 Briefly explain the difference between fixed and variable expenses. (2)
Fixed expenses are costs that remain constant each month and do not vary based on consumption or usage. Examples include rent, car insurance, and cell phone contracts. These expenses are predictable and regular, making it easier for individuals to plan their budgets around them.
Variable expenses, on the other hand, fluctuate each month and can vary based on factors such as consumption, usage, or personal choices. Examples include groceries, entertainment, and fuel. These expenses can be harder to predict and may require more careful management to stay within a budget.
#### 1.1.2 Determine the value of [tex]$A$[/tex], the total monthly income. (2)
Celina's Salary = R12,000
Zane's Salary = R14,300
Total Monthly Income (A) = Celina's Salary + Zane's Salary
Calculation:
A = R12,000 + R14,300 = R26,300
#### 1.1.3 List TWO variable expenses. (2)
Two examples of variable expenses from the table are:
1. Groceries
2. Entertainment
#### 1.1.4 How much does the family pay for the school fees for one child for the month? (4)
Total Monthly Expenses = R25,075
Sum of Known Expenses = R1,500 (Water & electricity) + R5,200 (Rent) + R4,500 (Groceries) + R875 (Car insurance) + R1,200 (Cell phone contract) + R2,400 (Medical Aid) + R2,350 (Fuel) + R1,400 (Entertainment) + R3,500 (Car instalment)
Calculation of Sum of Known Expenses:
Sum of Known Expenses = R1,500 + R5,200 + R4,500 + R875 + R1,200 + R2,400 + R2,350 + R1,400 + R3,500 = R22,925
Total School Fees for Two Children = Total Monthly Expenses - Sum of Known Expenses
Calculation of Total School Fees:
Total School Fees for Two Children = R25,075 - R22,925 = R2,150
School Fees for One Child = Total School Fees for Two Children / 2
Calculation of School Fees for One Child:
School Fees for One Child = R2,150 / 2 = R1,075
#### 1.1.5 Will the Makau family be able to save the expected amount for a month for their holiday? Show all calculations. (3)
Required Monthly Savings = R2,000
Total Monthly Income = R26,300
Total Monthly Expenses = R25,075
Remaining Income for Savings = Total Monthly Income - Total Monthly Expenses
Calculation of Remaining Income:
Remaining Income for Savings = R26,300 - R25,075 = R1,225
Since the remaining income (R1,225) is less than the required monthly savings (R2,000), the Makau family will not be able to save the expected amount for the month for their holiday.
#### 1.1.6 Mention ONE way in which the family can save more money for their holiday. (2)
One way the family can save more money is to reduce their entertainment expenses. By cutting down on non-essential spending on entertainment, they can increase their savings towards their holiday.
