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A budget is a plan of future income and expenses of a business as shown below - NSC Agricultural Management Practices - Question 4 - 2021 - Paper 1
Question 4
A budget is a plan of future income and expenses of a business as shown below. Expected income and expenditure information: 2 kg seed @ R400,00 per kg: 850 kg fert... show full transcript
Worked Solution & Example Answer:A budget is a plan of future income and expenses of a business as shown below - NSC Agricultural Management Practices - Question 4 - 2021 - Paper 1
Step 1
Complete the budget table
Answer
Expected Expenditure
-
Seed:
- Quantity: 2 kg
- Price per unit: R400.00
- Total price: R800.00
-
Fertiliser:
- Quantity: 850 kg
- Price per unit: R80.00 per 50 kg bag
- Total bags: 17
- Total price: R1,360.00
-
Transport:
- Quantity: 1 trip for 17 bags
- Price per unit: R5.00 per 50 kg bag
- Total price: R85.00
-
Wages:
- Quantity: 2 workers
- Price per unit: R400.00 per week
- Total price: R800.00
-
Packaging material:
- Quantity: 1,500
- Price per unit: R1.50 each
- Total price: R2,250.00
-
Transport to market:
- Quantity: 6 trips
- Price per trip: R300.00
- Total price: R1,800.00
Total Expenditure:
- Total expenses = R800 + R1,360 + R85 + R800 + R2,250 + R1,800
- Total expenses = R7,095.00
Expected Income
- Product Sales:
- Quantity: 1,500 boxes
- Price per unit: R15.00
- Total price: R22,500.00
Total Income:
- Total income = R22,500.00
Expected Profit
- Expected profit = Total Income - Total Expenses = R22,500.00 - R7,095.00 = R15,405.00