Worksheet For Mathematics For Management

Worksheet for Mathematics for Management
1. Thomas Private Limited Company is about to start production of new products to

sell to customers. Before the start of the new production, it costs the company $
200,000 to construct the factory’s building. Once the construction is over, the cost
per unit of production is estimated to be birr 20. Upon selling, the company will
incur a 20% commission expense. Moreover, the price per unit of products is
decided to be Birr 50.
Required:
a) Construct the total cost equation in terms of quantity.
b) Determine the break-even quantity (Revenue)
2. In its first year, “Helen Trading” had the following experience:

Unit selling price birr 100 Sales 50,000 units
Total fixed cost birr 400,000 TVC birr 3,000,000
Required:
a) Develop TR, TC and profit functions for the company in terms of quantity
b) Find the breakeven point in terms of quantity and sales volume.
c) If profit had been br. 500,000 what would have been the sales volume
(Revenue) and quantity of sales.
d) What would have been the profit if sales are br. 2,000,000
3. ALUMMUNI PLC. Produces three models of tractors: Metakeb, Mewesson,

Metekem Each unit of Metakeb, Mewesson and Metekem requires the following
amounts of time in minumtes in each of the indicated departments.
Machining dep’t Assembly dep’t Inspection dep’t

(in minutes) (in minutes) (in minutes)
Metakeb 1200 2400 600
Mewesson 1800 1200 3000
Metekem 3000 2400 1200
Suppose the total time available per month in machining, assembly and inspection
departments are 1050, 1160 and 830 hours respectively.
Required:
Determine the number of units of each product to be produced in a month to use up all
the available resources (use Gaussaian method)
4.Attendance record indicated that 80,000 South Koreans attended the 2002 world cup at
its opening ceremony. Total ticket receipts were $ 3,500,000. Admission prices were $
37.50 for the second class and $ 62.50 for the first class. Determine the number of South
Koreans who attended the opening ceremony at the first and second class.
5.There are two competing brands of toothpastes in a market. The brands are colget and
Akuafresh. A survey was undertaken to determine the extent customers switch over from
one brand to another every quarter. The survey has identified that every quarter 1/3 of
45% of customers of Akuafresh in the previous quarter continue to purchase Akuafresh.
And ¾ of 60% customers of colget in the previous quarter become customers of
Akuafresh. Moreover, it was identified that the two brands have a constant customers of
10,000 and no one stops purchasing one or the other brand. Currently the number of
customers of colget are 6000 persons.
Required:
a. What will be the number of customers of colget and Akuafresh after two
transitions?
b. Find the steady state market share.
6.Abush Manufacturing Company produces two different types of Tractor. These are
Hiwot and Durex. Hiwot requires 9 minutes to assemble and 2 minutes to package. While
Durex requires 12 minutes to assemble and 6 minutes to package. In addition, each type
has an engine. The company has 720 minutes of assembly time available 75 engines and
300 minutes of packaging time. Profits are b. 45 for Hiwot and br. 70 for Durex both per
unit.
Required:
a. Formulate the Linear anagramming model for the problem. (Show all the
necessary steps)
b. Determine how many tractors of each type to make in order to maximize total
profit (use simplex method)
c. Interpret your result
7. Ato Bekele is thinking of buying a G+2 building 5 years form now on a mortgage
basis. The building will be used for office purpose for his new business that costs Br.
500, 000. The required down payment is Br. 100, 000,with monthly mortgage payment
for 30 years at a rate of 12% compounded monthly. To cover the down payment Bekele
has established a sinking fundaccount in Dashen Bank, which pays 10% interest
compounded quarterly.
Required: a) How much Bekele should deposit at the end of every quarter to
meet the objective of the down payment?
b) Determine the amount of monthly mortgage payment to be made to
discharge the mortgage within 30 yrs.
c) What is the amount of total interest paid on the mortgage?
d) What is the total amount paid over the entire period of the
mortgage?

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Worksheet for Mathematics for Management

1. Thomas Private Limited Company is about to start production of new products to

2. In its first year, “Helen Trading” had the following experience:

3. ALUMMUNI PLC. Produces three models of tractors: Metakeb, Mewesson,

Machining dep’t Assembly dep’t Inspection dep’t

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