et profil B. Brand wants Z. Zulu to resign from his existing job and work as an active partner in the business in order to increase the returns earned by the partners. If this is the case • They will reduce the accounting fee by 75% (as Z. Zulu will be able to do most of the accounting). They will retrench one of the three shop assistants, in other words he/she will lose his/her job. • Z. Zulu will provide an extra R60 000 capital, which will be used to pay off part of the loan at the beginning of the financial year. Note that the loan was received from Brand's parents at 15% p.a. interest, which is not capitalised. It was also agreed that 45% of the loan must be settled at the end of the second year of business. The partners' salary allowance will increase to R105 000 p.a. each REQUIRED: Assuming that profitability (and all incomes and expenses) remains the same in the second year of business: 2.1.1 Calculate the change in net profit if Z. Zulu decides to work full-time. Show workings. (7) 2.1.2 Show the effect of this change to Z. Zulu's total earnings, if he gives up his (4) job.(Sharing the remaining profit of R131 950) 2.1.3 Briefly explain THREE other advantages for the business if Z. Zulu works on a full-time basis in the business. +y= Capital Archi (3)​



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