$[24]$

QUESTION $2$

$2\mathrm{.}1$ Differentiate between operating and non$-$operating expenses present in

manufacturing companies and use examples to supplement your answer.

$(6)$

$2\mathrm{.}2$

Determine the amount you will accumulate when you invest R$50000$ lump sum for a

period of five years at an interest rate of $7\%$ per annum, for:

$2\mathrm{.}2\mathrm{.}1$ Interest that compound annually.

$(2)$

$2\mathrm{.}2\mathrm{.}2$ Interest that compound monthly.

$(3)$

$2\mathrm{.}3$

The future value for an investment of R$3000$ at an interest of $8\%$ per annum is

R$6476\mathrm{.}77.$ After how many years can the R$6476\mathrm{.}77$ be collected?

$(3)$

$2\mathrm{.}4$

You would like to purchase annuity of R$10000$ for the next $15$ years. The bank is

offering an interest rate of $10\%$ per annum. How much must be invested today for:

$2\mathrm{.}4\mathrm{.}1$ Ordinary annuity

$(2)$

$2\mathrm{.}4\mathrm{.}2$ Annuity due

$(2)$

$2\mathrm{.}5$

OAC Electronics sells RF modules to different stores around South Africa. The

following information is known about the product:

Direct material R$85$ per unit

Direct labour R$50$ per unit

Variable overhead R$22$ per unit

Fixed cost R$4000000$ per year