N4 Entrepreneurship & Business Management


Other Information: 2.1 The average expenses per month: Telephone


R225


Water and Electricity R180 Salaries and Wages Advertising costs Stationery


R2800 R345 R120


2.2 In November they will sell one of their old delivery vehicles for R3800 cash 2.3 In December they will buy a second-hand delivery vehicle. The deposit will be R7 000 and the monthly instalments thereafter will be R8000 for the next 4 years.


CASE STUDY


Springbok Silencers is a small silencer-fitting business operating from a garage next to a busy road in Alexandra. They made a few enquiries and came up with the following sales forecast for the months March to June.


Months


March April May June


Estimated sales – silencers fitted


R30 000 R15 000 R21 000 R27 000


Estimated purchases – silencers bought


R15 000 R7 500


R10 500 R13 500


Other information 1. Springbok bought a new welding machine in March. They paid R8000 deposit and the monthly payments thereafter are R800 for six months.


2. Their average expenses per month are: Wages Rental


R1700 R1200


Telephone R550 Electricity R180 Fuel


R500


3. All Springbok’s sales are strictly cash. 4. In April they plan to sell an old grinder and drill for R2000 cash. 5. In May they plan to buy a new computer. The deposit will be R1500 and monthly instalments of R500 thereafter for one year.


6. Springbok Silencers sells fitted silencers at R600 each. 7. At the end of February the business had a favourable bank balance of R4000.


Other costs:


Springbok Silencers calculated that the following costs will be incurred for every 10 silencers being fitted. Welding rods


R200 Electricity for the welding machine R200


Calculate the following: 1. How many silencers Springbok expect to fit each month (sales). 2. Variable and fixed costs of Springbok. 3. Gross profit percentage.


162


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