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Consider a business that sells burgers. The selling price of each burger is R30.00. The fixed costs are R120.00 and the cost to make one burger is R10.00. A) Determine the formula for Income and Expen
Mathematics
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2.3.1
Determine the formula for Income and Expense.
- Income (R) = Number of burgers sold R
- Expense (R) = Fixed costs + (Number of burgers sold Cost to make one burger) Expense (R) = R + (Number of burgers sold R)
Calculate the value for A (Income when 4 burgers are sold).
So, A = .
Calculate the value for B (Expense when 6 burgers are sold).
So, B = .
The completed table is:
Number of burgers sold 0 2 4 6 8 10 Income (R) 0 60 120 180 240 300 Expense (R) 120 140 160 180 200 220 2.3.2
Identify the coordinates for plotting the Income and Expense graphs.
- Income (Number of burgers, Income in R): (0, 0), (2, 60), (4, 120), (6, 180), (8, 240), (10, 300)
- Expense (Number of burgers, Expense in R): (0, 120), (2, 140), (4, 160), (6, 180), (8, 200), (10, 220)
Draw the graphs on a set of axes.
Plot the income points and draw a line through them.
Plot the expense points and draw a line through them.
(Note: As an AI, I cannot draw the graph for you, but you can plot these points on graph paper.)Determine the break-even point from the graph.
The break-even point is where the Income graph and the Expense graph intersect. At this point, Income equals Expense.
From the table in 2.3.1, when 6 burgers are sold, both Income and Expense are R180.
Therefore, the break-even point is .
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