1. Describe what is meant by fixed, variable, and semi-variable costs and give two examples of each.

2. If a tradesperson needs to earn 20,000 a year, takes four weeks leave and spends two hours of his eight-hour day travelling, what should his hourly charge be? Discuss the considerations needed for pricing this service.

3. If the price of a product is 12, the fixed costs 1000 and variable costs 2, what is the break-even quantity? (Show your workings).