Use ANNEXURE A and the information above to answer the questions that follow - NSC Mathematical Literacy - Question 1 - 2017 - Paper 2

A weakened rand means that the cost of importing goods will increase. Since the SANBS imports 75% of its product testing materials, a weaker currency will lead to higher expenses. Consequently, this will reduce the total profit, as costs will rise without a corresponding increase in revenues. Overall, if the SANBS cannot pass these costs onto its customers, the profit margins will be negatively impacted.

To find the percentage profit for both years, we need the annual total profit and total annual primary income for 2015 and 2016.

Assuming the following values:

• Total Annual Profit (2015) = Rxxx
• Total Annual Primary Income (2015) = Rxxx
• Total Annual Profit (2016) = Ryyy
• Total Annual Primary Income (2016) = Ryyy

1. Percentage profit for 2015:

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

   Assume:

   $$Percentage ext{ }profit(2015) = \left( \frac{Rxxxx}{Rxxxx} \right) \times 100\%$$

2. Percentage profit for 2016:

   $$Percentage ext{ }profit(2016) = \left( \frac{Ryyy}{Ryyy} \right) \times 100\%$$

3. Comparison of Percentage Profits: The analysis will show whether SANBS improved or decreased in profit percentage from 2015 to 2016.