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1.1 Define VAT. 1.1.2 List 4 items a rugby player should have for protection, besides those mentioned. 1.1.3 Calculate the total amount spent per player, including VAT. 1.1.4 Calculate the total cost

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QUESTION 1

1.1.1

VAT stands for Value Added Tax.

1.1.2

Here are 4 items a rugby player should have for protection, besides those mentioned:

  • Headguard
  • Mouthguard
  • Shoulder pads
  • Groin protector

1.1.3

  1. Calculate the price including VAT for items excluding VAT.

    The VAT rate is assumed to be 15%.
    Rugby shirt, trouser, and socks (excluding VAT): R3 999.00
    Shin guards (excluding VAT): R350.00
    Rugby boots (including VAT): R1 299.95

    Price of rugby shirt, trouser, and socks including VAT:

    R3 999.00×(1+0.15)=R3 999.00×1.15=R4 598.85R3\,999.00 \times (1 + 0.15) = R3\,999.00 \times 1.15 = R4\,598.85

    Price of shin guards including VAT:

    R350.00×(1+0.15)=R350.00×1.15=R402.50R350.00 \times (1 + 0.15) = R350.00 \times 1.15 = R402.50
  2. Calculate the total amount per player including VAT.

    Total cost per player = (Rugby shirt, trouser, socks with VAT) + (Rugby boots with VAT) + (Shin guards with VAT)

    R4 598.85+R1 299.95+R402.50=R6 301.30R4\,598.85 + R1\,299.95 + R402.50 = R6\,301.30

    The total amount (including VAT) he would spend on each player is R6 301.30\boxed{\text{R6 301.30}}.

    1.1.4

  3. Determine the total number of players.

    The question states "in-field players and 5 out-field players". A standard rugby team has 15 in-field players.
    Total players = 15 (in-field) + 5 (out-field) = 20 players.

  4. Calculate the total cost for all players.

    Total cost = Cost per player ×\times Number of players

    R6 301.30×20=R126 026.00R6\,301.30 \times 20 = R126\,026.00
  5. Verify the assumption.

    Mr. Mopayi's budget is R139 999.
    The total cost for 20 players is R126 026.00.
    Since R126 026.00 is less than R139 999, the money would be sufficient.
    Therefore, the assumption is correct.

    1.1.5

  6. Identify the price of rugby boots including VAT.

    Price of rugby boots including VAT = R1 299.95.
    The VAT rate is 15%.

  7. Calculate the price of rugby boots excluding VAT.

    Price excluding VAT=Price including VAT1+VAT rate=R1 299.951+0.15=R1 299.951.15=R1 130.39\text{Price excluding VAT} = \frac{\text{Price including VAT}}{1 + \text{VAT rate}} = \frac{R1\,299.95}{1 + 0.15} = \frac{R1\,299.95}{1.15} = R1\,130.39
  8. Calculate the VAT amount.

    VAT amount=Price including VAT−Price excluding VAT\text{VAT amount} = \text{Price including VAT} - \text{Price excluding VAT} R1 299.95−R1 130.39=R169.56R1\,299.95 - R1\,130.39 = R169.56

    The VAT amount on the price of rugby boots is R169.56\boxed{\text{R169.56}}.

    QUESTION 1.2

    1.2.1

    UIF stands for Unemployment Insurance Fund.

    1.2.2

  9. Determine Sipho's monthly gross salary.

    Annual gross salary = R114 000.

    Monthly gross salary=R114 00012=R9 500.00\text{Monthly gross salary} = \frac{R114\,000}{12} = R9\,500.00
  10. Calculate Sipho's monthly UIF contribution.

    The employee's UIF contribution is typically 1% of the gross salary.

    Monthly UIF contribution=1%×R9 500.00=0.01×R9 500.00=R95.00\text{Monthly UIF contribution} = 1\% \times R9\,500.00 = 0.01 \times R9\,500.00 = R95.00

    Sipho's monthly UIF contribution is R95.00\boxed{\text{R95.00}}.

    1.2.3

    UIF is important for workers because it provides short-term financial relief during periods of unemployment, maternity leave, adoption leave, or illness. It acts as a social safety net, helping workers and their families maintain some income when they are unable to work.

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