1. Determine the number of tour packages at the break-even point. 2. Determine the income if 8 tour packages are sold. 3. Hence calculate the profit made from 6 tour packages sold. Use the formula: Profit = Income - Expenses - VAT payable 4. Determine the number of tour packages that were sold if the expenses are R1 500 more than the income.

Question

UpStudy AI · Accepted Answer

To assist you effectively with these questions, I'll need some additional information about the financial aspects of the tour packages. Specifically, please provide details on the following:

1. **Selling Price per Tour Package:** How much is each tour package sold for?
2. **Variable Costs per Tour Package:** What are the costs that vary with each package sold (e.g., transportation, accommodation, meals)?
3. **Fixed Expenses:** Are there any fixed costs that remain constant regardless of the number of packages sold (e.g., salaries, rent)?
4. **VAT Rate:** What is the applicable VAT (Value Added Tax) percentage?

**However, I can outline the general approach to solving each of your questions:**

### 1. Determine the Number of Tour Packages at the Break-Even Point

**Break-Even Point (BEP)** is where Total Income equals Total Expenses (no profit, no loss).

**Formula:**
$$ \text{BEP (in units)} = \frac{\text{Fixed Expenses}}{\text{Selling Price per Unit} - \text{Variable Cost per Unit}} $$

### 2. Determine the Income if 8 Tour Packages are Sold

**Income Calculation:**
$$ \text{Income} = \text{Number of Packages Sold} \times \text{Selling Price per Package} $$
$$ \text{Income} = 8 \times (\text{Selling Price per Package}) $$

### 3. Calculate the Profit Made from 6 Tour Packages Sold

**Profit Formula:**
$$ \text{Profit} = \text{Income} - \text{Expenses} - \text{VAT Payable} $$

**Steps:**
1. Calculate **Income**: $$ 6 \times \text{Selling Price per Package} $$
2. Calculate **Expenses**: This includes fixed expenses plus $$ 6 \times \text{Variable Cost per Package} $$
3. Calculate **VAT Payable**: This depends on whether VAT is applied to income, expenses, or both. Typically, VAT on income is collected and VAT on expenses is reclaimable.
4. Subtract Expenses and VAT from Income to get Profit.

### 4. Determine the Number of Tour Packages Sold if Expenses are R1,500 More Than Income

**Given:**
$$ \text{Expenses} = \text{Income} + R1,500 $$

**Steps:**
1. Express Income: $$ \text{Number of Packages} \times \text{Selling Price per Package} $$
2. Express Expenses: $$ \text{Fixed Expenses} + (\text{Number of Packages} \times \text{Variable Cost per Package}) $$
3. Set up the equation:
$$ \text{Fixed Expenses} + (\text{Number of Packages} \times \text{Variable Cost}) = (\text{Number of Packages} \times \text{Selling Price}) + R1,500 $$
4. Solve for the Number of Packages.

---

**Please provide the specific financial details mentioned above**, and I can help you calculate each of these points accurately.
To determine the number of tour packages at the break-even point, income from 8 packages, profit from 6 packages, and the number of packages sold when expenses are R1,500 more than income, please provide the following details: 1. **Selling Price per Tour Package** 2. **Variable Costs per Tour Package** 3. **Fixed Expenses** 4. **VAT Rate** With this information, I can calculate the required values accurately.

Real Tutor Solution

Answer

Solution

Bonus Knowledge

Related Questions

Latest Economics Questions