Use the information above to answer the questions that follow. 3.1 Determine the total fixed cost that will be paid for each of the three contracts individually at the end of each period. 3.2 Explain, without using fixed monthly costs, a factor that will influence Mpho to choose one of the cell phone contracts. 3.3 (a) The cash price of an iPhone 13 Pro Max is R16 500 including \( 15 \% \) VAT. Calculate the price excluding VAT. (b) The store manager states that the Telkom contract package is cheaper than paying cash. 3.4 Verify, using calculations, whether the manager's statement is valid. (a) Write down the formula to represent option 1 . (b) Determine the value of A (see ANSWER SHEET). 3.5 Use the data given on the attached ANSWER SHEET, to draw the graph of the Telkom relationship. The graph for the Vodacom and MTN relationships are already drawn. 3.6 Write down the number of minutes and cost, at which the cost for option 1 and option 2 are the same. 3.7 Mpho plans to use more than 25 call minutes but less than 180 call minutes per month. Which of the three contracts above will be the most cost effective for Mpho?

To solve the questions step by step, let's extract the known conditions and then address each question accordingly. ### Known Conditions 1. There are three cell phone contracts. 2. The cash price of an iPhone 13 Pro Max is R16,500, including 15% VAT. 3. We need to analyze the costs associated with the contracts and compare them. ### 3.1 Total Fixed Cost for Each Contract To determine the total fixed cost for each contract, we need specific details about the contracts, such as the fixed monthly fees or any other fixed costs associated with them. Since this information is not provided, I cannot calculate the total fixed cost for each contract. ### 3.2 Factor Influencing Mpho's Choice One factor that may influence Mpho's choice of a cell phone contract could be the amount of data included in the contract. If Mpho frequently uses data for streaming or browsing, a contract with a higher data allowance may be more appealing, even if it has a higher fixed cost. ### 3.3 (a) Price Excluding VAT To calculate the price excluding VAT from the cash price of R16,500, we can use the formula: \[ \text{Price excluding VAT} = \frac{\text{Cash Price}}{1 + \text{VAT Rate}} \] Where the VAT rate is 15% or 0.15. Let's calculate this: \[ \text{Price excluding VAT} = \frac{16500}{1 + 0.15} = \frac{16500}{1.15} \] ### 3.3 (b) Validity of the Manager's Statement To verify if the Telkom contract package is cheaper than paying cash, we need to compare the total cost of the Telkom contract over its duration with the cash price of R16,500. This requires specific details about the Telkom contract, such as monthly fees and duration. ### 3.4 (a) Formula for Option 1 The formula for option 1 would typically represent the total cost over a period, which could be expressed as: \[ C_1 = F + V \cdot m \] Where: - \( C_1 \) = Total cost for option 1 - \( F \) = Fixed cost (monthly fee) - \( V \) = Variable cost per minute - \( m \) = Number of minutes used ### 3.4 (b) Determine the Value of A To determine the value of \( A \), we need more context or data from the ANSWER SHEET, which is not provided here. ### 3.5 Graph of the Telkom Relationship To draw the graph of the Telkom relationship, we would need specific data points (cost vs. minutes) from the ANSWER SHEET. Without this data, I cannot create the graph. ### 3.6 Cost Equivalence of Option 1 and Option 2 To find the number of minutes and cost at which the cost for option 1 and option 2 are the same, we would set the equations for both options equal to each other and solve for \( m \): \[ C_1 = C_2 \] Where \( C_1 \) and \( C_2 \) are the total costs for options 1 and 2, respectively. ### 3.7 Most Cost-Effective Contract for Mpho To determine which contract is the most cost-effective for Mpho, we would need to calculate the total costs for each contract based on the usage of more than 25 but less than 180 call minutes. This requires specific details about the costs associated with each contract. ### Next Steps To proceed with calculations for questions 3.3 (a), 3.4 (b), and 3.6, I will calculate the price excluding VAT and then verify the manager's statement if the necessary data is provided. Please provide the missing details or data from the ANSWER SHEET for further calculations.