The graph below shows the monthly cost and total sales of cookies by Mrs Tan. - Explain what does po

Question

The graph below shows the monthly cost and total sales of cookies by Mrs Tan.

Explain what does point $P$ represent.[1]
Explain what does point $Q$ represent.[1]

Mrs Tan bought 3 ovens costing $10 950 that will be fully depreciated (means reduced to $0) in 2 years.

Each oven is to be used to bake large, medium and small cookies respectively. Each large, medium and small circular cookie has a thickness of 0.4 cm and measures 6 cm, 4 cm and 3 cm in diameter respectively.

Selling price for each large cookie is $1, medium cookie is $0.80 and small cookie is $0.50. Order for each type of cookies must be in multiples of 20.

On a particular day, she receives orders from 18 locations amounting to a total of 160 large, 100 medium and 140 small pieces of cookies. The cost of delivery to each location is $3.50.

The table below shows the cost of producing and packing the cookies on a particular day.

Electricity and water usage: $6.
Depreciation of oven: $15.
Cost of delivery.
Cost of materials.
Cost of packaging.

The cost of materials are shown in the table below.

Each piece of	Cost of material
Large cookie	$20\text{ cents}$
Medium cookie	$15\text{ cents}$
Small cookie	$11\text{ cents}$

Mrs Tan wants to pack exactly 20 cookies in each container. The table below shows the dimensions and cost of the different types of containers from a supplier for her to select.

Dimensions of circular containers available
Diameter (cm)	Height (cm)	Cost of each circular container
$7$	$10$	$\$0.60$
$6$	$7$	$\$0.50$
$5$	$10$	$\$0.40$
$4$	$7$	$\$0.30$

By taking 1 year to be 365 days, show that the depreciation cost of the 3 ovens per day is $15.[1]
Calculate Mrs Tan’s profit from the sales of cookies on this particular day.[6]
Without raising the price of the large, medium and small cookies, suggest a way to help Mrs Tan increase the profit margin.[1]

Accepted Answer

(a) fixed cost (b) break-even point (c) $\$15$ (d) $\$154$ (e) reduce delivery cost

Diameter (cm)	Height (cm)	Cost of each circular container
\(7\)	\(10\)	\(\$0.60\)
\(6\)	\(7\)	\(\$0.50\)
\(5\)	\(10\)	\(\$0.40\)
\(4\)	\(7\)	\(\$0.30\)

2025 AHS PRELIMS P2 Q16

2025 AHS PRELIMS P2 Q16

Solution:

Solution locked

Each piece of	Cost of material
Large cookie	\(20\text{ cents}\)
Medium cookie	\(15\text{ cents}\)
Small cookie	\(11\text{ cents}\)