GRADE 12

SUBJECT: MATHEMATICAL LITERACY

WEEK 4 – 6 LESSONS

TOPIC: FINANCE

ATP: TERM1 2021

GRADE 12
SUBJECT: MATHEMATICAL LITERACY

WEEK 4 LESSON

TOPIC: FINANCE

SECTION: COST PRICE AND SELLING PRICE

ATP: TERM1 2021

RESOURCES NEEDED

• Mind the Gap

• Math Lit Textbook
• Calculator
• KZN Prelim 2020
• NSC Nov 2019
• NSC June 2019
LESSON OBJECTIVES

By the end of the lesson learners should be able to:

• Define the terminology used in cost price and selling price
• Determine the cost price of an item or service
• Decide on the appropriate selling price of an item or service
COST PRICE AND SELLING PRICE

The cost price is how much the item cost the business.
The selling price is the amount a buyer pays for an item.
For a business to make profit, it should sell goods or services for more than it cost.
The profit a company makes should be determined by the difference between the
selling price and cost price.
If the selling price is less than the cost price, the company makes a loss.
If the selling price is more than the cost price, the company makes a profit.
The difference between the cost and selling price is called the mark-up.
Mark-up can be defined as the difference in Rand value or as a percentage.
Selling prices should be fair to customers while the business should make a profit
Note that money should be rounded off to 2 decimal places if there are cents.
COST PRICE AND SELLING PRICE

EXAMPLE 1
A shop sells computer software program. The cost of the program is R800. The shop
wants to make a profit of 45%.
1. Calculate the selling price of the program.
2. Determine the Rand value of the mark-up. Selling Price =
Solution: = R1160

3. Profit = R800 × 45% = R360 OR

Selling price = R800 + R360 = R1160
4. R360
COST PRICE AND SELLING PRICE: EXAM TYPE QUESTIONS

QUESTION 1: KZN PRELIM 2020

Agricultural Sciences students at Roseville College plant rose trees with the aim
of selling bunches of roses.
The formula they use to determine the cost price is:
Cost price = R12,00 + (R50,00 × number of bunches of roses).
One bunch of roses is sold at R80,00 each.
Use the information above to answer the questions that follow:
a)Calculate the cost price of 23 bunches of roses. (2)
b)Agricultural Science students paid a total cost price of R812,00 for bunches of
roses. Calculate the number of bunches of roses bought. (3))
c)Write the formula for calculating the income in the form: Income = … (2)
COST PRICE AND SELLING PRICE: EXAM TYPE QUESTIONS CONT…
QUESTION 1: PRELIM KZN 2020 (SOLUTION)

a) Total cost price = R12,00 + (R50,00 × 23)

= R1 162,00
b) Cost price = R12,00 + (R50,00 × number of bunches of roses).
R812,00 = R12,00 + R50,00 × n
R812,00 – R12,00 = R50,00 × n
R800,00 = R50,00 × n
n = 16
number of bunches of roses = 16
c) Income = R80,00 × number of bunches of roses sold
COST PRICE AND SELLING PRICE: EXAM TYPE QUESTIONS CONT…

QUESTION 2: PRELIM KZN 2020

• The price of the plant soil is made up of the fixed cost of R37,00 plus
R6,00 per kilogram.

a) Write the formula to calculate the cost of the plant soil in the form:
Cost = … (3)

b) Show by calculations whether 75 kg of plant soil will cost more than

R500,00.(3)
COST PRICE AND SELLING PRICE: EXAM TYPE QUESTIONS CONT…

QUESTION 2: PRELIM KZN 2020 (SOLUTION)

a) Cost = R37,00 + (R6,00 × number of kilograms)

b) Cost = R37,00 + (R6,00 × 75 kg)

= R487,00

It will cost less than R500,00

 COST PRICE AND SELLING PRICE: EXAM TYPE QUESTIONS CONT…
QUESTION 3: NSC NOV 2019

Josh owns a specially designed refuse removal truck. He

hires out this truck at a daily rate of R3 000, excluding fuel. A
group of friends decided to use the truck for the day to carry
their refuse to the nearby dumping ground.

The graph alongside indicates the amount each person will

pay depending on the number of friends.

Use the graph alongside to answer the questions that follow:

a) State the type of proportion represented in the graph

alongside. (2)

b) Write down the number of friends in the group if each

paid R500. (2)

c) Calculate the amount each person will pay if 7 friends

hired the truck. (3)
COST PRICE AND SELLING PRICE: EXAM TYPE QUESTIONS CONT…

QUESTION 3: NSC NOV 2019 (SOLUTIONS)

a) Inverse proportion or Indirect proportion

b) 6

c) Amount per person =

= R428,57

1 person should pay R428,57 to ensure amount is paid in full.

COST PRICE AND SELLING PRICE: EXAM TYPE QUESTIONS CONT…

QUESTION 4: NSC JUNE EXAM 2019

Susan intends selling cups of Milo at the local taxi rank for
extra money. Milo is a nutritious supplementary drink
developed to provide active people with key vitamins and
minerals.
Use the advertisement alongside to answer the questions
that follow:
a)
Determine the unit price when purchasing Milo option 2.
(3)
b)Determine the total cost of 6 ℓ of milk. (2)
c)Explain the meaning of the word cost price.(2)
COST PRICE AND SELLING PRICE: EXAM TYPE QUESTIONS CONT…
QUANTITY COST OF AMOUNT COST PER
BOUGHT INGREDIENTS USED FOR CUP OF
ONE CUP MILO

1 kg Milo R97,95 0,04 kg A

d) Susan decided to exclude the cost of water when 1 ℓ milk R11,99 B R1,20
calculating the cost price per cup of Milo.
The table alongside shows how Susan calculated the cost 2,5 kg sugar R33,20 0,01 kg R0,13
price of ONE cup of Milo.
i. Calculate A, the cost of Milo per cup. (2)
25 foam cups C ONE R1,78
ii. Determine B, the amount of milk, in litres, used for ONE
cup of Milo. (2)
50 spoons R12,75 ONE R0,26
iii. Write down the value of C, the cost of 25 foam cups.(2).
iv. Show that the cost of ONE cup of Milo, D, is R7,29.
TOTAL COST D

e) Determine the selling price of ONE cup of Milo if Susan's intended profit margin is 25%. (4)
COST PRICE AND SELLING PRICE: EXAM TYPE QUESTIONS CONT…

QUESTION 4: NSC JUNE 2019 (SOLUTIONS)

a) R1 140, 95 ÷ 12 = R95,07916667 = R95,08 per kg

b) R11,99 × 6 = R71,94

c) Cost price of an item is the cost of making that item or Original price before profit is added or …

d) :

i. A - Cost of milo per cup: R97,95 × 0,04 kg = R3,92

ii. B – amount of milk used: R1,20 ÷ R11,99 = 0,1 l

iii. C – cost of 25 foam cups: R1,78 × 25 = R44,50

iv. D – cost of one cup of milo: R3,92 + R1,20 + R0,13 + R1,78 + R0,26 = R7,29

e) Selling Price =R7,29 × = R9,1125 = R9,10 (Answer to be rounded off to the nearest 10c)
GRADE 12
SUBJECT: MATHEMATICAL LITERACY

WEEK 5 LESSON

TOPIC: FINANCE

SECTION: INCOME, EXPENDITURE, PROFIT/LOSS AND

BUDGET

ATP: TERM1 2021

RESOURCES NEEDED

• Mind the Gap

• Math Lit Textbook
• Calculator
• EC Prelim 2020
• FS Prelim 2020
• NSC June 2019
LESSON OBJECTIVES

By the end of the lesson learners should be able to:

• Define the terminology used in income and expenditure.
• Identify and perform calculations involving income and
expenditure
• Work with income, expenditure and budget statements
INCOME, EXPENDITURE AND BUDGET

 Income
- money that an individual or business receives
- Fixed income, constant income of same rand value per month for
example salary.
- Variable income, changing income of different rand value per month
for example commission.
- Occasional income, unreliable form of income per period for example
loan
INCOME, EXPENDITURE AND BUDGET CONT…

 Expenditure
- money that an individual or business spends and often used when talking
about budgets.
- Fixed expenditure, similar expense every month, for example car instalment.
- Variable expenditure, different expense every month, for example water bill.
- Occasional expenditure, once off or unexpected expenditure for example car
breakdown.
 Budget is a list of expected income and expenditure
PROFIT AND LOSS

 Profit, income is bigger that expenditure

- There is enough money to cover bills (surplus money)

 Loss, income is less than expenditure

- There is no enough money to cover bills (deficit money)

 % Profit, compares profit and cost price

- % Profit Formula: %Profit =

 Profit margin, compares the profit and the income

- Profit Margin is a better indicator of how well a product or company is doing
- Profit Margin Formula: Profit Margin =
PROFIT AND LOSS: EXAMPLE

QUESTION 1: EC PRELIM 2020

A shopkeeper sold 10 shirts for a total R1 200 gaining a profit of 25% from the sale.
Calculate the profit made on the sale of 10 shirts
Solution:
125% : R1 200
25% : Profit
Profit = ×𝑅1 200
= R240
PROFIT MARGIN: EXAMPLE CONT…
QUESTION 2
• Company A has an income of 3000 000 and costs of 300 000
• Company B has an income of 2 500 000 and costs of 200 000
• The Profit Margin for:
Company A = 90%
Company B = 92%
• Company B performed better than Company B
INCOME AND EXPENDITURE: EXAM TYPE QUESTIONS
QUESTION 3: FS PRELIM 2020
Income and profit accumulated in the motor trade industry from 2006–2015 is given below:
INCOME AND EXPENDITURE: EXAM TYPE QUESTIONS CONT…

Use the information in the table above to answer the questions below:

a) Write down the total income for 2015 in full, without the word million. (2)

b) Identify the type of motor trade which generated the MOST income. (2)

c) Determine the year in which the profit generated through the sales of automotive fuel was less than
R300 000 000. (2)

d) Calculate D, total income in 2006. (2)

e) Calculate E, % contribution of wholesale sales of motor vehicle. (3)

f) Calculate the difference between the income generated from sales of new motor vehicle parts and
accessories, and sales of used motor vehicle parts and accessories for 2012. (3)
INCOME AND EXPENDITURE: EXAM TYPE QUESTIONS CONT…

QUESTION 3: FS PRELIM 2020 (SOLUTIONS)

a) 600 332 000 000
b) Retail sales of motor vehicles
c) 2009
d) D = 16 519 + 158 411 + 26 289 + 20 627 + 1 021 + 1 890 + 50 154
= 274 911 million
e) E = 100 – 25,9 – 0,7 – 0,5 – 9,3 – 5,2 – 50,9 = 7,3%
f) Difference = 51 503 million - 2 156 million = 49 347 million
BUDGET: EXAM TYPE QUESTION
QUESTION 4: NSC JUNE 2019
Mr Vellem tries to minimize his usage of municipal water and plans to install a Jojo tank to collect
rainwater. A local supplier gave the following quotation to install a Jojo tank:

LOCAL HANDYMAN JOE

PO Box 4652
Brackenfell
ITEM QUANTITY UNIT PRICE
Jojo tank 1 R12 958,00
Other materials 1 R1 943,70
Labour per hour or part thereof R129,99

He found out that the installation will take 5 hours 10 minutes on the first day and then and then 2 hours
on the second day.
Mr.Vellem has a total budget of R15 900 to buy and install the tank.
Verify, using calculations, whether the budget will be enough. (6)
BUDGET: EXAM TYPE QUESTION CONT…
Labour day 1 = 6 hours × 129,99
Day 2/Dag 2 = 2 hours × 129,99
= R259,98
Total = R779,94+ R259,98
= R1 039,92
Cost of installing the tank = R12 958,00 + R1 943,70 + R1 039.92
= R15 941,62
Amount above = R15 941,62 − R15 400
= R541,62
Mr Vellem's budget is NOT enough
GRADE 12
SUBJECT: MATHEMATICAL LITERACY

WEEK 6 LESSON

TOPIC: FINANCE

SECTION: BREAKEVEN ANALYSIS

ATP: TERM1 2021

RESOURCES NEEDED
• Mind the Gap
• Math Lit Textbook
• Calculator
• EC Prelim 2020
• NSC June 2019
• WC Prelim 2018
LESSON OBJECTIVES

By the end of the lesson learners should be able to:

• Define the terminology used in Break-even analysis.
• Complete a table for total income and total expenses. Determine
where the values for the two are the same.
• Determine the break-even values by drawing the two graphs on
a set of axes. Read off the point of intersection on the graph.
BREAK – EVEN ANALYSIS

 Break-even point is a point where total expenses and total income are equal.
 No profit or loss at the break even point
 Break-even point can be determined by:
- Completing a table for total income and total expenses. Determine where the values for the
two are the same.
- Drawing graphs of the total income and expenses. The break-even point will be where the two
graphs intersect.
BREAK – EVEN ANALYSIS: EXAM TYPE QUESTIONS

• Andile runs a travel agency and deals in tour packages.

A Mathematical Literacy student drew an Income and
Expense graph shown alongside to help Andile
determine the break-even point for his business.
• The formulae used for Expenses and Income are also
shown below.
• The cost price of tour packages has an equation:
Expenses = 2 000 + (500 × number of tour packages)
• The income from the tour packages has an equation:
Income = 1 000 × number of tour packages
BREAK – EVEN ANALYSIS: EXAM TYPE QUESTIONS
Use the graph and information alongside to answer
the questions below.
a)
Determine the number of tour packages at the
breakeven point. (2)
b)
Determine the income if 8 tour packages are sold.
(3)
c)Income received is VAT (Value Added Tax)
exclusive. Determine the VAT amount payable if 6
tour packages are sold. Use VAT = 15%. (3)
d)
Use your answer in QUESTION c). to calculate the
profit made from the 6 tour packages sold. Use the
formula: Profit
= Income – Expenses – VAT payable(3)
e)
Determine the number of tour packages that were
sold if the expenses are R1 500 more than the
income. (2)
BREAK – EVEN ANALYSIS: EXAM TYPE QUESTIONS CONT…

QUESTION 1 : EC Prelim 2020 (SOLUTION)

a) 4 Tour packages
b) Income = R1 000 ×8 = R8 000
c) R6 000 ×15% = R900
d) Profit = R6 000 – R5 000 – 900 = R100
e) 1 Tour package
BREAK – EVEN ANALYSIS: EXAM TYPE QUESTIONS CONT…

QUESTION 2 : NSC JUNE 2019

• Susan started her business one month later and because of the price increase of products, it then
cost her R9,50 to make ONE cup of Milo. She calculated that the daily fixed cost was R90,00 and
she would be able to sell 100 cups of Milo per day. She will sell the Milo at R12,50 per cup.
• Use the information above to answer the questions that follow
a) The table below shows the income from the sale of cups of Milo.
Number of cups of Milo (n) 0 20 30 40 80 100
Income in rand (R) 0 250 375 P 1 000 1 250

i. Determine the value of P in TABLE above. (2)

ii. Write down an equation that can be used to calculate the income. (2)
iii. Identify the independent variable in the TABLE above. (2)
BREAK – EVEN ANALYSIS: EXAM TYPE QUESTIONS CONT…

b) Susan uses the following formula to determine the cost price of the cups
of Milo.
Cost = R90,00 + (R9,50 × n) where n = number of cups of Milo.
The table below shows the cost price for a number of Cups of Milo
Number of cups of Milo (n) 0 20 30 Q 80 100

Cost price in rand (R)

90 280 375 612,50 850 1 040

Calculate the value of Q in the Table above. (3)

BREAK – EVEN ANALYSIS: EXAM TYPE QUESTIONS CONT…

c) The graph on alongside shows the

total income for making up to 100
cups of Milo.
Use the information in the TABLE
above to draw another graph
representing the cost from the
selling of up to 100 cups of Milo
BREAK – EVEN ANALYSIS: EXAM TYPE QUESTIONS CONT…
d) Use the tables or graphs on
ANSWER SHEET alongside to
answer the following questions.

i. Explain the meaning of the word

break-even in the context of the
question. (2)

ii. Determine the number of cups of

Milo at the break-even point. (2)
BREAK – EVEN ANALYSIS: EXAM TYPE QUESTIONS CONT…

QUESTION 2 : NSC JUNE 2019 (SOLUTIONS)

a)
i.P = 40 × R12,50 = R500,00
ii.Income in rand = R12,50 × n where n = number of cups of milo.
iii.Number of cups of milo
b)
R612,50 = R90,00 + (R9,50 × n)
R612,50 - R90,00 = R9,50 × n n= Q = 55
c)See the graph in the slide below
d)
i.The cost price for the number of cups of Milo sold and the selling price of that number is the same (equal). No
profit or loss OR Cost price = Selling price
ii.30 Cups
BREAK – EVEN ANALYSIS: EXAM TYPE QUESTIONS CONT…
BREAK – EVEN ANALYSIS: EXAM TYPE QUESTIONS CONT…

Question 3: WC Prelim 2018

• Tebogo decides to remove garden waste on Saturdays.

• She hired a bakkie and a trailer at R400 a day.

• She asked her friend James to help her.

• She pays James R300 per day

a) Calculate Tebogo's daily fixed expenses. (2)

b) Tebogo has removed 80 drums and her variable expenses are R240.

Calculate the variable expenses per drum. (2)

BREAK – EVEN ANALYSIS: EXAM TYPE QUESTIONS CONT…

c) The TABLE below shows the ratio between the number of drums (with waste) and the total expenses.

Number of drums (n) 0 10 20 30 40 50 80

Expenses (C) in Rand 700 730 760 A 820 850 940
Use the above information and answer the questions that follow:
i. Write down a formula in the form Expenses (C) = .............. to determine the expenses (C) if a
number of drums (n) are removed.(2)

ii. Hence determine the value of A. (2)

iii. Determine the number of drums that were removed for R1 000. (2)
d) Tebogo receives R20 to remove 1 drum. On a certain day, she received R1 600. Calculate the
number of drums she removed on that specific day. (2)
BREAK – EVEN ANALYSIS: EXAM TYPE QUESTIONS CONT…

e) The graph of Tebogo's expenses (c.)

is drawn on the ANSWER SHEET
provided.

Draw the graph of Tebogo's income for

(d.) alongside on the same set of axes
and name the axes and the graph
appropriately
f) Use the following formula and determine
the number of drums that should be
removed to break even.
BREAK – EVEN ANALYSIS: EXAM TYPE QUESTIONS CONT…

Question 3: WC Prelim 2018 (Solutions)

a)Fixed cost = R400 + R300 = R700

b)Cost per drum = R240 ÷ 80 = R3 per drum
c):
i. Expenses (C) = 700 + 3n, where n represent number of drums.
ii. Expenses (C) = 700 + 3n = 700 + 3 × 30 = 790
iii. 1000 = 700 + 3n
3n = 300
n = 100
d)Number of drums = R16 000 ÷ R20 = 80
n = 100
BREAK – EVEN ANALYSIS: EXAM TYPE QUESTIONS CONT…

e) See graph alongside

f) Number of units =
= 41,18
= 42