Martha decides to start a new business venture and bake chocolate muftins. She sells the muffins for R2S,00 each. Her only fixed cost is paying her 16 ycar old niece R 500 a month to maintain the businese social page. She calculated that the variable cost per muffin is R15,00. Define the term fixed cost in the given context. .2 Give any ONE variable cost for the Muffins business venture. 3 Martha calculated that when she bakes 50 muffins her income will be equal to her expenses. What will this point be called on a graph representing her income and expenses? Calculate the amount of profit that Martha will make if she sells 200 muffins.

1. A fixed cost is an expense that does not change with the number of muffins produced. In this context, Martha’s monthly payment of R500 to her niece is a fixed cost because it must be paid whether she bakes 1 muffin or 200 muffins. 2. One variable cost is the cost incurred for each muffin baked. Here, the variable cost per muffin is R15.00. This means that every muffin produced adds a cost of R15.00. 3. The point where Martha’s income equals her expenses is called the break‐even point. On a graph of income and expenses, the break‐even point is where the two lines intersect. 4. To calculate the profit from selling 200 muffins, we perform the following calculations: - Selling price per muffin: \( R25.00 \) - Income from selling 200 muffins: \[ \text{Income} = 200 \times R25.00 = R5000 \] - Variable cost for 200 muffins: \[ \text{Total Variable Cost} = 200 \times R15.00 = R3000 \] - Total cost includes fixed cost plus variable cost: \[ \text{Total Cost} = \text{Fixed Cost} + \text{Total Variable Cost} = R500 + R3000 = R3500 \] - Profit is given by: \[ \text{Profit} = \text{Income} - \text{Total Cost} = R5000 - R3500 = R1500 \] Thus, if Martha sells 200 muffins, she will make a profit of R1500.