Question $1$

$1\mathrm{.}1$ Name two assumptions that are inherent in CVP$-$type models.

$1\mathrm{.}2$ With the help of a diagram, differentiate between variable and fixed costs.

$1\mathrm{.}3$ John has a lemonade stand and he sells lemonade in his neighbourhood. His business has a fixed cost of R$200$ per month and it costs him R$1\mathrm{.}50$ to produce a glass of lemonade. John decided to sell each glass of lemonade for R$3\mathrm{.}00.$ Calculate the following:

$1\mathrm{.}3\mathrm{.}1$ Break$-$even volume per month

$(4)$

$1\mathrm{.}3\mathrm{.}2$ How many glasses of lemonade does John need to sell in order to make a profit?

$(2)$

$1\mathrm{.}3\mathrm{.}3$ The increase in profit if the monthly sales of $750$ units is increased by $10\%.$