1.1.1 Communication costs decreased by 4,402% from 2015 to 2016 - NSC Mathematical Literacy - Question 1 - 2017 - Paper 2

A weaker rand increases the import costs for the SANBS, as they rely on importing 75% of their product testing materials and consumables. This rise in costs may significantly reduce their total profit since a larger portion of their expenses would increase relative to their income. If the costs increase without a corresponding increase in revenue, their profit margins will shrink, negatively affecting their overall profitability.

To calculate the percentage profit for both years, we use the formula provided:

$Percentage \ profit = \left( \frac{Annual \ Total \ Profit}{Total \ Annual \ Primary \ Income} \times 100 \right)$

1. For 2015, let’s assume:

   • Annual Total Profit (2015) = RXXXX
   • Total Annual Primary Income (2015) = RYXXX
   • Then, the calculation is: $Percentage \ profit \ 2015 = \left( \frac{XXXX}{YYYY} \times 100 \right)$

2. For 2016, let’s assume:

   • Annual Total Profit (2016) = RZZZZ
   • Total Annual Primary Income (2016) = RAAZZ
   • The calculation is: $Percentage \ profit \ 2016 = \left( \frac{ZZZZ}{AAZZ} \times 100 \right)$

3. Lastly, compare both results to highlight any changes in percentage profit.