Ms Coetzee bought a small franchise that sells CD's at the local flea market on weekends....
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Ms Coetzee bought a small franchise that sells CD's at the local flea market on weekends. The franchise costs her R1 250 per month up front and she also pays R200 per weekend in order to trade at the flea market. Each CD costs R75 and her plan is to sell them for R175,00 each. Assume that the month in which she is trading has 4 Sundays. i. Write the formulas that she can use to: Calculate her income in the form: MONTHLY INCOME = Calculate her expenses in the form: MONTHLY EXPENSES = ii. Complete the following table: Nr of CD's 0 5 Monthly income Monthly expenses vi. vii. viii. 10 15 20 25 30 iii. Use the next page to draw on the same set of axes a line graph representing Ms Coetzee's monthly income and another line graph representing her monthly expenses. iv. Determine Ms Coetzee's profit or loss if she sold 25 CD's in this particular Determine the minimum number of CD's that Ms Coetzee must sell in order to make a profit. V. How many CD's must she sell to break-even? Show the area where there is a loss, where the expenses curve is above the income curve. Show on the graph, where the income is above the expenses, the area where the business is making a profit. Ms Coetzee bought a small franchise that sells CD's at the local flea market on weekends. The franchise costs her R1 250 per month up front and she also pays R200 per weekend in order to trade at the flea market. Each CD costs R75 and her plan is to sell them for R175,00 each. Assume that the month in which she is trading has 4 Sundays. i. Write the formulas that she can use to: Calculate her income in the form: MONTHLY INCOME = Calculate her expenses in the form: MONTHLY EXPENSES = ii. Complete the following table: Nr of CD's 0 5 Monthly income Monthly expenses vi. vii. viii. 10 15 20 25 30 iii. Use the next page to draw on the same set of axes a line graph representing Ms Coetzee's monthly income and another line graph representing her monthly expenses. iv. Determine Ms Coetzee's profit or loss if she sold 25 CD's in this particular Determine the minimum number of CD's that Ms Coetzee must sell in order to make a profit. V. How many CD's must she sell to break-even? Show the area where there is a loss, where the expenses curve is above the income curve. Show on the graph, where the income is above the expenses, the area where the business is making a profit.
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i MONTHLY INCOME Number of CDs sold x Selling Price Cost Price per CD Number of CDs x R100 MON... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
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