Sure, let's walk through the steps needed to answer each part of the problem.
### Question 3.1
Explain the meaning of the word cost price.
Answer:
The cost price is the total amount of money that it costs to produce a single unit of a product. This includes all expenses directly incurred during production, such as the cost of materials, labor, and overhead costs, but excludes any markup or profit margin that might be added when setting the final selling price.
### Question 3.2
Now calculate the values [tex]$A$[/tex], [tex]$B$[/tex] and [tex]$C$[/tex].
To address this question accurately, we would need a table or a list with specific information, which should be provided in the problem. Unfortunately, without seeing the actual table, I can speculate the following:
- [tex]$A$[/tex] might represent the daily setup cost (R40).
- [tex]$B$[/tex] might represent the daily traveling costs (R14.20).
- [tex]$C$[/tex] could represent any variable costs per cup, such as materials or ingredients.
However, these values should be derived from the provided table/data. Let's calculate these values based on the information provided:
- [tex]\( A = 40 \)[/tex] (setup cost per day)
- [tex]\( B = 14.20 \)[/tex] (traveling costs per day)
If Mary’s table includes the material costs per cup of coffee which you must calculate to find the total cost for one cup, say material costs per cup is [tex]\( C \)[/tex].
### Question 3.3
Determine the selling price of one cup of coffee if she wants to have a profit margin of 25%.
Given the cost price is [tex]$C$[/tex] and we want a 25% profit margin, the formula for the selling price [tex]\(S\)[/tex] is:
[tex]\[ S = C \times (1 + \frac{25}{100}) \][/tex]
[tex]\[ S = C \times 1.25 \][/tex]
So the selling price of one cup of coffee would be 1.25 times the cost price.
### Question 3.4
Determine Mary's fixed costs per day.
Fixed costs per day are those costs that do not change with the number of cups of coffee sold. From the information:
- Fixed cost for setting up the stall: R40
- Fixed cost for traveling: R14.20
So, Mary's fixed costs per day are:
[tex]\[ 40 + 14.20 = 54.20 \][/tex]
### Question 3.5
Provide an equation for the expenses of selling coffee per day.
The total daily expenses [tex]\(E\)[/tex] can be calculated by combining the fixed costs and the variable costs (cost per cup multiplied by the number of cups sold [tex]\(n\)[/tex]):
[tex]\[ E = \text{Fixed costs} + (\text{Cost per cup of coffee} \times \text{Number of cups sold}) \][/tex]
[tex]\[ E = 54.20 + (C \times n) \][/tex]
This equation allows us to calculate the total expenses based on the number of cups of coffee sold each day.
I hope this detailed explanation clarifies each step. Let me know if you have further questions!
