QUESTION 2 Zoë decides she wants to start her own…
QUESTION 2 Zoë decides she wants to start her own business. She has R30 000,00 in her savings account. She’s going to open a Cupcake shop in Sea Point selling special cupcakes. She first wants to set up a business plan before finally deciding whether to start the business. Below is a table Zoë set up with all her expenses. Expenses Cost (R) Rent R4000 Electricity R850 Transport Train tickets – R300 monthly pass Ingredients R2100 for 300 cupcakes Unplanned R900 2.1 Make a list of Zoë’s fixed expenses. (3) 2.2 Make a list of Zoë’s variable expenses. (3) 2.3 If it costs Zoë R7,00 to make 1 cupcake calculate: 2.3.1 The selling price for 1 cupcake if its mark-up is 300%. Round your answer to the nearest rand.Use: Selling price = cost price + mark-up (3) 2.3.2 The profit she makes on one cupcake? (2) 2.4 Calculate the missing values for A to E in the table below.Use the following values: R6050,00 as the fixed expenditure amount.R7,00 as the cost price per cupcake.R28,00 as the income per cupcake. Cupcakes 0 100 200 300 400 500 600 Income R0 A R5600 R8400 B R14000 R16800 Expenses C R6750 D E R8850 R9550 R10250 (5) 2.5 Draw a graph of both the income and expenses on the same set of axis. (5) 2.6 Use your graph to answer the following questions. 2.6.1 Why does the expense line start at R6050,00? (2) 2.6.2 How many cupcakes should Zoë sell to make a profit? (3) 2.6.3 What is the cutting point called? Why is the point significant? (3) 2.6.4 For how many months will Zoë be able to support her business by paying for the fixed monthly expenses if she covers it with the money from her savings account? Use R30 000,00 as the amount in her savings account. (3) 2.7 Do you think it is a good idea for Zoë to open the business? Give a reason for your answer by taking the information from above into account (3)
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