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Use the information and Table 1 above to answer the questions that follow. 15.1.1 Differentiate between cost and selling price. 15.1.2 Calculate Mr. Kherwa's total cost for the return trip. 15.1.3 Show how the total monthly fixed costs of R8 500 was calculated.

Mathematics

ScanSolve AI Answer

Answer

R3 000\text{R}3\,000

000=R8 500000 = \text{R}8\,500

Step-by-step solution

5 steps

15.1.1

  • Cost refers to the total amount of money spent by a business to acquire or produce goods or services.
  • Selling price is the amount of money at which a business offers its goods or services for sale to customers.

15.1.2

  1. Identify the transport cost for a single trip.

    The problem states that the transport cost for a single trip to Kimberly is R3 000. Since Mr. Kheswa takes his truck once a month, this is the cost for the return trip.

    Total cost for return trip=Transport cost\text{Total cost for return trip} = \text{Transport cost} Total cost for return trip=R3 000\text{Total cost for return trip} = \text{R}3\,000

    The total cost for the return trip is R3 000\boxed{\text{R}3\,000}.

    15.1.3

  2. Identify all explicit monthly fixed costs mentioned in the problem.

    • Transport cost for a single trip to Kimberly (monthly): R3 000
    • Salesman's salary (monthly): R2 500

  3. Calculate the sum of these explicit fixed costs.

    Explicit fixed costs=R3 000+R2 500=R5 500\text{Explicit fixed costs} = \text{R}3\,000 + \text{R}2\,500 = \text{R}5\,500

  4. Determine the "other fixed costs" by subtracting the explicit fixed costs from the total monthly fixed costs given in the table (R8 500 for 0 goats).

    Other fixed costs=Total monthly fixed costs−Explicit fixed costs\text{Other fixed costs} = \text{Total monthly fixed costs} - \text{Explicit fixed costs} Other fixed costs=R8 500−R5 500=R3 000\text{Other fixed costs} = \text{R}8\,500 - \text{R}5\,500 = \text{R}3\,000

  5. Show the calculation of the total monthly fixed costs.

    The total monthly fixed costs of R8 500 is calculated by summing the transport cost, the salesman's salary, and other unspecified fixed costs (e.g., rent, utilities).

    Total monthly fixed costs=Transport cost+Salesman’s salary+Other fixed costs\text{Total monthly fixed costs} = \text{Transport cost} + \text{Salesman's salary} + \text{Other fixed costs} Total monthly fixed costs=R3 000+R2 500+R3 000=R8 500\text{Total monthly fixed costs} = \text{R}3\,000 + \text{R}2\,500 + \text{R}3\,000 = \boxed{\text{R}8\,500}
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