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The tuck-shop ladies at your school prepared and income and expenditure statement for July 2025. Use the information above to answer the questions that follow.

Accounting

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4 parts
6.1

R24 400\text{R}24\,400

6.2

5 people5 \text{ people}

6.3

−R400-\text{R}400

6.5

Correct\text{Correct}

Step-by-step solution

9 steps

Activity 6

Part 6.1· 2 steps

Calculate A, the total expenses for July.

  1. Calculate the total wages.

    Wages=R70×5×4=R1 400\text{Wages} = \text{R}70 \times 5 \times 4 = \text{R}1\,400

  2. Sum all expenditure items to find A.

    A=Stock+Wages+New fridge+New microwave\text{A} = \text{Stock} + \text{Wages} + \text{New fridge} + \text{New microwave} A=R14 000+R1 400+R7 500+R1 500\text{A} = \text{R}14\,000 + \text{R}1\,400 + \text{R}7\,500 + \text{R}1\,500 A=R24 400\text{A} = \text{R}24\,400

    The total expenses for July are R24 400\boxed{\text{R}24\,400}.

Part 6.2

5 people5 \text{ people}

Determine how many people received wages if there were 4 weeks in July.

  1. Use the wages calculation from the table

    R70×5×4\text{R}70 \times 5 \times 4.
    The amount R70\text{R}70 is the wage per person per week, and 4 is the number of weeks. Therefore, 5 represents the number of people.

    Number of people=5\text{Number of people} = 5

    5 people\boxed{5 \text{ people}} received wages.

Part 6.3

−R400-\text{R}400

Calculate the tuck-shop's profit for July.

  1. Identify the total income and total expenditure.

    Total Income = R24 000\text{R}24\,000 (from the table)
    Total Expenditure (A) = R24 400\text{R}24\,400 (calculated in 6.1)

  2. Calculate the profit.

    Profit=Total Income−Total Expenditure\text{Profit} = \text{Total Income} - \text{Total Expenditure} Profit=R24 000−R24 400\text{Profit} = \text{R}24\,000 - \text{R}24\,400 Profit=−R400\text{Profit} = -\text{R}400

    The tuck-shop's profit for July is −R400\boxed{-\text{R}400} (a loss of R400).

Part 6.4

Provide ONE way to prepare for occasional expenses.

One way to prepare for occasional expenses is to set aside a portion of profits regularly into a separate savings account or fund. This creates a provision for future unexpected or irregular costs.

Part 6.5

Correct\text{Correct}

The ladies at the tuck-shop made the statement that if there were no occasional expenses they would have made a profit of R8 600. Verify, with calculations if they are correct.

  1. Identify the occasional expenses.

    Occasional expenses are the New fridge (R7 500\text{R}7\,500) and New microwave (R1 500\text{R}1\,500).

    Total occasional expenses=R7 500+R1 500=R9 000\text{Total occasional expenses} = \text{R}7\,500 + \text{R}1\,500 = \text{R}9\,000

  2. Calculate the total expenditure if there were no occasional expenses.

    Expenditure without occasional expenses=Total Expenditure (A)−Total occasional expenses\text{Expenditure without occasional expenses} = \text{Total Expenditure (A)} - \text{Total occasional expenses} Expenditure without occasional expenses=R24 400−R9 000=R15 400\text{Expenditure without occasional expenses} = \text{R}24\,400 - \text{R}9\,000 = \text{R}15\,400

  3. Calculate the profit if there were no occasional expenses.

    Profit without occasional expenses=Total Income−Expenditure without occasional expenses\text{Profit without occasional expenses} = \text{Total Income} - \text{Expenditure without occasional expenses} Profit without occasional expenses=R24 000−R15 400=R8 600\text{Profit without occasional expenses} = \text{R}24\,000 - \text{R}15\,400 = \text{R}8\,600

  4. Verify the statement.

    The calculated profit of R8 600\text{R}8\,600 matches the statement.
    The statement is Correct\boxed{\text{Correct}}.

    6.6 The tuck-shop has been informed by their suppliers that the prices will increase in Term 3. Give ONE suggestion you would give the tuck shop ladies regarding their selling prices and give a reason for your answer.
    Suggestion: The tuck-shop ladies should consider increasing their selling prices.
    Reason: An increase in supplier prices means the cost of goods sold will rise. To maintain their profit margins and cover the increased costs, they need to adjust their selling prices accordingly.

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