At the end of the first month, the business you started managed to make R495,000. Use the following information to calculate your business expenses and your net profit.
Operational expensesAmounts
\begin{tabular}[t]{l}
\begin{itemize}
\item[a.] Salaries: Foreman 1
Foreman 2
Worker 1
Worker 2
\item[b.] Advertising
\item[c.] Stock and equipment
\item[d.] Deliveries
\item[e.] Total operational expenses (a + b + c + d)
\end{itemize}
&
$\begin{array}{l}
\text{R25,000}
\text{R25,000}
\text{R15,000}
\text{R15,000}
\end{array}$
\text{R10,000}
\text{R90,000}
\text{R65,000}
R \_\_\_\_ (4 marks)
\\
\hline Administration costs & \\
\hline
\begin{itemize}
\item[f.] Salaries: Administrator
\item[g.] Supplies and miscellaneous
\item[h.] Insurance
\item[i.] Total administrative costs (f + g + h)
\end{itemize} &
\text{R30,000}
\text{R12,000}
\text{R3,000}
R \_\_\_\_ (2 marks)
\\
\hline General costs & \\
\hline
\begin{itemize}
\item[j.] Rent
\item[k.] Miscellaneous (fuel, electricity, etc.)
\item[l.] Total general costs $(j + k)$
\end{itemize} &
$\text{R50,000}$
R \_\_\_\_ (2 marks)
\\
\hline & \\
\hline Total expenses & R \_\_\_\_ (2 marks) \\
\hline Net profit & R \_\_\_\_ (2 marks) \\
\hline & \\
\hline
\end{tabular}
4.2 Explain why a reasonable net profit is important for your business.
Operational expenses | Amounts |
\begin{tabular}[t]{l} \begin{itemize} \item[a.] Salaries: Foreman 1 Foreman 2 Worker 1 Worker 2 \item[b.] Advertising \item[c.] Stock and equipment \item[d.] Deliveries \item[e.] Total operational expenses (a + b + c + d) \end{itemize} |
$\begin{array}{l} \text{R25,000} |
\text{R25,000} |
\text{R15,000} |
\text{R15,000} \end{array}$ |
\text{R10,000} |
\text{R90,000} |
\text{R65,000} |
R \_\_\_\_ (4 marks) |
\text{R30,000} |
\text{R12,000} |
\text{R3,000} |
R \_\_\_\_ (2 marks) |
$\text{R50,000}$ |
R \_\_\_\_ (2 marks) |