This business/management problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
You're on a roll — Step 1: Explain the term VAT exclusive. VAT exclusive means that the stated price does not include Value Added Tax (VAT). The VAT amount must be calculated and added to this price to determine the total amount payable. VAT exclusive means the price does not include Value Added Tax. Step 2: Advise Lebo on the most economical transport option. The VAT rate is 15%. Option 1: Flight The cost is R480 VAT inclusive for a one-way ticket. Lebo is travelling from Durban to Johannesburg and back to Durban, which means two one-way tickets. Total cost for flight = R480 × 2 Total cost for flight = R960 Option 2: Bus The cost is R1 480 VAT exclusive for a return ticket. To make it VAT inclusive, we add 15% VAT. VAT amount = R1480 × 0.15 VAT amount = R222 Total cost for bus = R1480 + R222 Total cost for bus = R1702 Comparing the two options: Flight: R960 Bus: R1 702 The flight is the most economical option. The flight is the most economical option at R960. Step 3: Give one reason why people choose to fly rather than take a bus, even if it seems more expensive. People often choose to fly because it is significantly faster and saves a lot of travel time compared to travelling by bus. Flying saves a significant amount of travel time. Step 4: Calculate Lebo's total expenses for her planned trip. • Travel by bus: R960 • Accommodation: R450 per day × 5 days = R2250 • Food: R250 per day × 5 days = R1250 • Transport in Johannesburg: R60 per day × 5 days = R300 • Johannesburg Zoo Entrance Fee: R120 • Gold Reef City Entrance Fee: R265 • Sci-Bono Discovery Centre Entrance Fee: R60 • Apartheid Museum Entrance Fee: R150 Total Expenses = R960 + R2250 + R1250 + R300 + R120 + R265 + R60 + R150 Total Expenses = R5355 R5355 Step 5: Calculate Lebo's total income to cover the cost of her trip. • Birthday money from friends: R1 500 • Money from part-time job: R80 per hour × 21 hours = R1680 • Money from Labo's savings: R900 • Contribution from parents: R1 000 Total Income = R1500 + R1680 + R900 + R1000 Total Income = R5080 R5080 Step 6: Give one reason why it is important to save money every month. It is important to save money every month to build an emergency fund for unexpected expenses or financial difficulties. To build an emergency fund for unexpected expenses. Step 7: State what ATM stands for in Finance. ATM stands for Automated Teller Machine. Automated Teller Machine What's next? 📸