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1.1 Porter's five forces model 1.2 1. Blue Sky Airways provides a daily service between Johannesburg and Durban. The aircraft has a capacity of 220
1.1 Porter's five forces model 1.2 1. Blue Sky Airways provides a daily service between Johannesburg and Durban. The aircraft has a capacity of 220 passengers and each trip costs the company R70 000, regardless of the number of passengers. Additional costs are R60 per passenger (baggage, cabin services and booking costs). a. If Blue Sky Airways charges R450 per passenger, how many passengers does it need to break even on each flight? 1.3 Listed six foundational principles that can be used to study finance. 1.4 a. Zebra Ltd wants you to examine the effect of changes in sales on their income before tax. The costs that the company incurred last year follows: Fixed costs: Depreciation R1 000 000; Plant maintenance 170 000; Salaries 400 000; Office expense 200 000; Advertising 30 000; Interest on debt 200000 ; Total R2 000000 Variable cost per unit output: Labour R4; Materials 6; Total R10; Assume that Zebra sells its products at R15 per unit. a) Calculate the break-even volume of sales. b) Tabulate the variable cost, sales, pre-tax income and net income of Zebra when they produce and sell 10000,20000,30000,40000,50000,60000 and 70000 units. The tax rate is 30%. c) Illustrate the variables in [b] by means of a graph
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