[25] QUESTION TWO Jaya Travel Agency books their clients in Bupo Airways for flights between Johannesburg and Kruger National Park. They provide the following monthly information: REGENT BUSINESS SCHOOL (RBS) - JULY 2020 31 DIFM YEAR 2 - ACADEMIC AND ASSESSMENT CALENDAR -DISTANCE Ticket price charged by Bupo Airways R2 000 Commission received per passenger 12.5% Variable cost per passenger R32.00 Fixed cost per month R20 000 R18.00 Other variable costs: Delivery fee charged by TST Deliveries, per passenger Required: 2.1 Calculate the number of tickets Jaya Travel Agency must sell per month to break even. 2.2 Calculate the number of tickets Jaya Travel Agency must sell to make a profit of R12 000 per month (3) 2.3 Assume that another delivery company offers to charge Jaya Travel Agnecy R12.50 per passenger and 120 tickets have been sold. Calculate the profit or loss for the month using a marginal income statement. (6) 2.4 Refer to answer in 2.1, calculate the margin of safety if Jaya Travel Agency sells 110 tickets. (2) 2.5 For the following questions write down the question number only the corresponding correct letter. Eg. 2.5.6A (10) 2.5.1 The difference between budgeted amounts and actual results is referred to as: A Standard deviation B. Averaging C. Budget variances D. Weighted averages 2.5.2 If the actual amount spent on a cost item is R 50 000, and the fixed budget amount for that item was R 36 000, then the budget variance is: REGENT BUSINESS SCHOOL (RBS) JULY 2020 32 DIFM YEAR 2 - ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE A B. C. D. R 14 000 favourable R 46 000 unfavourable R 14 000 unfavourable R 86 000 favourable 2.5.3 If the budgeted selling price is R1000, the actual selling price is R750 and The actual units sold are 270, then the selling price variance is R97,500 unfavourable R87,500 favourable R67,500 unfavourable D. R57,500 favourable A B C. 2.5.4 If the actual amount spent on a cost item is R26 000 and the fixed budgeted amount for that item is R11 000, then the budget variance is: R39,000 favourable R49,000 unfavourable R13,000 favourable R15,000 unfavourable A. B. C. D 2.5.5 A certain material X is used as input in the production process. The actual A. B. cost of the material is R500 per unit. The budgeted price of the material is R 350 per unit. The quantity of the material purchased is 60 units. The material purchase price variance is equal to: R15,000 favourable R13,000 unfavourable R11,000 favourable D. R9,000 unfavourable C