Skip to content
MeerkatSkool Afrikaans
Summaries · Grade 7 EMS › Costs, price and profit
Free summary · Grade 7 EMS

Costs, price and profit

Fixed and variable costs, cost price and selling price, profit, loss and the break-even point. Read one part at a time and tap “I know this”. Then test yourself in the quiz.

Know it already? Jump straight to the quiz

Your progress0 of 3

Profit and loss

Income−Expenses=Profit
If the answer is negative, it is a loss.
Cost priceSelling priceProfit per item
R40R65R25
R25R40R15

Income = number × price: 100 items × R30 = R3 000. If the cost price rises, profit per item falls, unless the price rises too.

Cost, price and profit at the bakery.
Cost, price and profit at the bakery.
Tap when you could tell someone without looking.

Kinds of costs

Fixed costsVariable costs
Stay the same each monthChange with how much you make
The shop’s rentThe material per item

An overhead cost is not tied to one item. Know all your costs to set the price correctly; fixed costs must be covered every month.

Tap when you could tell someone without looking.

Breaking even

A stall pays R100 to hire its table. Each cupcake brings in R10 more than its ingredients cost. It must sell R100 ÷ R10 = 10 cupcakes to break even. If it sells fewer, it makes a loss; a business that keeps making losses may eventually close.

Meerkat tip

More sales at the same price can give more profit than a higher price.

Tap when you could tell someone without looking.

Remember this and test yourself

Remember this: your summary
  • Profit = income − expenses: R8 000 − R5 500 = R2 500.
  • Fixed costs stay the same each month (rent); variable costs change with production (material per item).
  • Selling price lower than cost price: a loss.
  • Break-even point: income equals expenses.
  • Profit percentage = profit ÷ cost price × 100: R15 ÷ R60 × 100 = 25%.

Write these points in your book. Read them again the night before the test.

Memory trick

Fixed costs are like your rent: they come every month. Variable costs are like your flour: the more you bake, the more you buy.

Flash cards · Tap to turn over

Important words

First say what the word means, then turn the card over.

Test yourself · Part 2

True or false?

Read the question and the answer. Is the answer right? Tap True or False.

    Now the real quiz!

    The quiz has many more questions on this topic. Every question shows straight away whether you are right and explains why.

    Take the quiz: Costs, price and profit
    All Grade 7 EMS summaries
    For parents
    • Read one part together and ask your child to tell it back in their own words.
    • The ticks (“I know this”) are saved on this device only. We never ask for names or emails.

    Follows CAPS for Grade 7 Economic and Management Sciences (EMS). Always check your teacher’s notes and textbook too.

    Free PDF