Formula Centre

Formula guides and key subject rules for every grade and subject, with worked examples and practice.

Grade 10 Agricultural Sciences essentials

Agricultural Sciences • Essential reference • Grade 10

Gross margin = Income − Variable costs
IncomeMoney earned from production (R)
Variable costsCosts that change with output (R)

When to use it

Use when comparing the financial performance of farm enterprises.

Worked example

R50 000 income − R32 000 variable costs = R18 000 gross margin.

Common mistakes

  • Including fixed costs as variable costs.

Practice question

Calculate gross margin from R72 000 income and R49 500 variable costs.

Grade 11 Agricultural Sciences essentials

Agricultural Sciences • Essential reference • Grade 11

Gross margin = Income − Variable costs
IncomeMoney earned from production (R)
Variable costsCosts that change with output (R)

When to use it

Use when comparing the financial performance of farm enterprises.

Worked example

R50 000 income − R32 000 variable costs = R18 000 gross margin.

Common mistakes

  • Including fixed costs as variable costs.

Practice question

Calculate gross margin from R72 000 income and R49 500 variable costs.

Grade 12 Agricultural Sciences essentials

Agricultural Sciences • Essential reference • Grade 12

Gross margin = Income − Variable costs
IncomeMoney earned from production (R)
Variable costsCosts that change with output (R)

When to use it

Use when comparing the financial performance of farm enterprises.

Worked example

R50 000 income − R32 000 variable costs = R18 000 gross margin.

Common mistakes

  • Including fixed costs as variable costs.

Practice question

Calculate gross margin from R72 000 income and R49 500 variable costs.