Grade 12 Mathematical Literacy

LO1 Business Finances: Cost and Selling price, types of payment

1. A business manager should have some knowledge of basic mathematical concepts. Copy the diagram below and fill in the missing amounts.

Remember: To work out the rate of VAT you have to calculate it in the same manner that you would calculate a percentage.
( 70 100 ) 500 1

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Grade 12 Mathematical Literacy

2. A manufacturer decides to manufacture desks for schools. He determines that for one desk he needs a wooden slab that is 760 mm x 600 mm, which costs him R125; two other wooden slabs measuring 760 mm x 500 mm and that cost R100 each; 3,5 m of metal tubing that costs R20 per meter. It takes a worker 35 minutes to assemble one desk. The worker is paid R45 per hour. The manufacturer adds R250 to cover overhead costs and profit. Take the above information into account and answer the questions that follow. 2.1 Determine the amount of wages the worker will be paid for assembling one desk. Determine the cost of producing one desk. Determine the marked-up price of one desk. Calculate the VAT at 14% that must be added. Determine the selling price of one desk.

2.2 2.3
2.4

2.5

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Grade 12 Mathematical Literacy

3. The Door Manufacturing Company (Pty) Ltd employ various people to do different jobs. Those that are directly involved in the manufacturing process are paid per table they manufacture and those involved in other aspects, such as cleaning staff, as paid per hour. The table below indicates how wages are calculated. Study the table and answer the questions that follow. Rate Overtime rate Minimum requirements Taxation Direct workers R55 per door R95 per door 15 doors at 3 hours each 25% for the first 15 doors and 30% for any additional doors completed 8% of normal wages Indirect workers R25 per hour Double the normal hourly rate 45 hours 20% for normal time and 25% for overtime 8% of normal wages

Pension 3.1 3.2 3.3 3.4

Determine what a direct worker would earn if he manufactured 18 doors. Determine what an indirect worker would earn if he worked for 48 hours. How much money would a direct worker, who manufactured 18 doors, take home (net wages)? How much money would an indirect worker, who worked 48 hours, take home (net wages)? Which worker, the direct or indirect, has the best deal? Explain.

3.5

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Grade 12 Mathematical Literacy

4. Mrs Kajee is an estate agent working for herself. Her basic commission is 5,5% of the selling price of the houses she sells. The commission is added to the original selling price and the buyer pays the original price plus the commission. She does on occasion reduce or increase the percentage commission, depending on the people wanting to buy the house or the people wanting to sell the house. Take this information into account when answering the questions that follow.
4.1

Determine the amount of commission Mrs Kajee can charge on a house that the owners want to sell for R1 350 000. Determine how much commission was charged on a house that was sold to Mr Moodie for R780 000. Mrs Kajee was commissioned to sell a house with a selling price of R2,5 million. The owners, Mr and Mrs Pietersen, wanted to sell the house as quickly as possible. Mrs Kajee agreed to decrease her commission to 2,5%. Mrs Mopane offered the Pietersens R2,35 million for the house. The Pietersens agreed to the sale. Take this information into account and answer the questions that follow.

4.2
4.3

4.3.1 How much did the Pietersens hope to received when they sold the house? 4.3.2 How much less commission did Mrs Kajee agree to receive? 4.3.3 How much did the Pietersens actually receive for the sale of their house? 4.3.4 How much commission did Mrs Kajee actually receive? 4.4 Mrs Kajee sold houses to the value of R4,5 million in January. If she did not reduce or increase her commission during January, how much income would she have received after taxation of 35%?

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Grade 12 Mathematical Literacy

ANSWERS
1.

2.1 2.2 2.3 2.4 2.5

45 35 = R 26,25 60

R125 + (2 x R100) + R26,25 + (3,5 x R20) = R421,25 R421,25 + R250 = R671,25 R671,25 x 14% = R93,98 R671,25 + R93,98 = R765,23

3.1

(15 x R55) + (3 x R95) = R1 110

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Grade 12 Mathematical Literacy

3.2 3.3 3.4 3.5

(45 x R25) + (3 x R50) = R1 275 R1 110 ((R825 x 25%) + (R285 x 30%) + (R825 x 8%)) = R752,25 R1 275 ((R1 125 x 20%) + (R150 x 25%) + (R1 125 x 8%)) = R922,50 The indirect workers take home more money than the direct workers. The direct workers are skilled labourers, yet they still earn less than the indirect, semi-skilled or unskilled, workers. It may be better for the direct workers to do an indirect job than the direct job. R1 350 000 x 5,5% = R74 250
R 780000 5,5 105 ,5

4.1 4.2 4.3.1 4.3.2 4.3.3 4.3.4 4.5

= R40 663,51
100 102 ,5

R 2500000

= R2 439 024,39 = R2 439 024 = R73 170,72

(R 2439024

5,5 2,5 ) (R 2439024 ) 100 100

100 102 ,5

R 2350000

= R2 292 682,93

R2 439 024 R2 292 682,93 = R146 341,07

R 4500000 5,5 100

= R247 500
35 ) 100

R 247500 ( 247500

= R160 875

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