Explanation:
To determine if the company will make a profit or a loss when selling 9 units, let's calculate the total revenue and total expenses for selling 9 units.
Total Revenue = Selling Price per unit × Number of units sold
Total Revenue = R104 × 9 = R936
Total Expenses = Fixed Expenses + (Cost per unit × Number of units sold)
Total Expenses = R800 + (R18 × 9) = R800 + R162 = R962
Now, let's compare the total revenue and total expenses:
Total Revenue (R936) < Total Expenses (R962)
Since the total expenses (R962) are greater than the total revenue (R936), the company will make a loss if they sell 9 units. The loss can be calculated as:
Loss = Total Expenses - Total Revenue
Loss = R962 - R936
Loss = R26
The company will incur a loss of R26 when selling 9 units.