QUESTION $1$

$1\mathrm{.}1$ Differentiate between fixed costs and variable costs and provide two examples of

each for a car dealership. $(6)$

$1\mathrm{.}2$ A company manufacturing screen protectors sells each unit for R$40$ to different

electronic stores in South Africa. The unit variable cost is R$10,$ and the company$$s

fixed costs are R$30000$ per month.

$1\mathrm{.}2\mathrm{.}1$ Determine the breakeven number of units the company should aim for. $(2)$

$1\mathrm{.}2\mathrm{.}2$ Determine the contribution margin ratio. $(2)$

$1\mathrm{.}2\mathrm{.}3$ Determine the breakeven point in sales rand that the company should aim

for. $(2)$

$1\mathrm{.}2\mathrm{.}4$ The company has a target of R$60000$ in profit for next month. Determine the

total sales in rands the company should sell in order to achieve that profit. $(3)$

$[15]$