Mathes Final Assignment

MATHEMATICS FOR MANAGEMENT
General Instruction:
▪ Form a group of 4-5 students and answer the questions below.
▪ Your works should be neat & complete.
▪ Due Date: may 10,2024
Chapter 1
1. A firm manufactures and markets a product that sells for Br 20 per unit. Fixed c
osts associated with activity total Br 40,000 a month, while variable cost per un
it is Br 12. A maximum of 10,000 units can be produced and sold.
A. Drive the TR, TC and Total profit functions.
B. Sketch the TR, TC and Total profit functions in the same coordinate s
ystem.
C. What is the Break-even point (in terms of quantity and sales volume)?
D. Drive the new TC, Total profit functions given that FC is increased b
y Br
E. 10,000 a month, and calculate the new break-even point.
F. Drive the new TC and Total profit functions given that unit variable
costs is decreased by 12% and calculate the new Break-even point.
G. Drive the new TR and Total profit functions given that the unit sellin
g price increases by 15% and calculate the new break-even point.
H. What is the relationship that you may inter from BEP & FC, P & BEP
and V& BEP?
I. Assume selling prince increases by 7% and at the same time
Variable cost increases by 10% what is the effect of these changes
on the BEP - calculate the new break-even point. What lesson can
we drive from this?
J. Suppose there is no any change in FC, V and P, What is the maximu
m profit the firm can generate, and at what level of output?
K. Keeping P and FC constant, what is the maximum unit variable cost
for the firm to break even (at its maximum out put level)?
L. Keeping all things as they are, what is the quantity level at whic
h the company:
i. Makes a profit of Br 45,000?
ii. Looses Br 28,000?
M. Had there been no capacity limitation, how would your answe
r have changed in part (i)?
1
Chapter 2
2. ALUMMUNI PLC. Produces three models of tractors: Metakeb, Mewesson, Met
ekem Each unit of Alpha, Gamma and Omega requires the following amounts o
f time in minumtes in each of the indicated departments.
Machining dep’t Assembly dep’t Inspection dep’t

(in minutes) (in minutes) (in minutes)
Alpha 1200 2400 600
Gamma 1800 1200 3000
Omega 3000 2400 1200
Suppose the total time available per month in machining, assembly and inspection
departments are 1050, 1160 and 830 hours respectively.
3. A population of 100,000 consumers makes the following purchases during a

particular week: 20,000 consumers make the following purchases during a parti
cular week: 20,000 purchases Brand A, 35,000 Brand purchase B and 45,000 purc
hase neither brand. From a market study, it in estimated that of those who purc
hase Brand A, 80% will purchase it again next week, 15% will purchase Brand B
next week, and 5% will purchase neither brand. Of those who purchase B, 85%
will purchase it again next week, 12% will purchase brand A next week, and 3%
will purchase neither band. Of those who purchased neither brand, 20% will pu
rchase as A next week, 15% will purchase Brand B next week, and 65% will purc
hase neither band next week. If this purchasing pattern continues, will the mark
et stabilize? What will the stable distribution be?
Chapter 3
4. A company has budgeted a maximum of Br 1,200,000 for advertising a certain p
roduct nationally. Each minute of television time costs Br 80,000 and each on
e-page newspaper ad costs$15,000. Each television ad is expected to be viewed
by 15 million viewers, and each newspaper ad is expected to be seen by 3
million readers. The company’s market research department advises the compa
ny to use at most 90% of the advertising budget on television ads. How should t
he advertising budget be allocated to maximize the total audience? Use graphic
al approach to find the optimum solution.
5. A manufacturer produces three types of plastic fixtures. The time required for
molding, trimming, and packaging is given in the table below. (Times are given
in hours per dozen fixtures.)
Process Ty pe A Type B Type C Total Time availa

ble
2
Molding
Trimming
Packaging
Profit
How many dozen of each type of fixture should be produced to obtain a maximum profit? Use
a simplex approach.
6. A toy manufacturer makes three versions of a toy. The 1st version requires 10 m
inutes each for fabrication & packaging, and 2 pounds of plastic. The 2nd versio
n requires 12 minutes of fabrication & packaging and 3 pounds of plastic. The 3r
d version requires 15 minutes of fabrication & packaging and 4 pounds of plasti
c. There are 8 hours of fabrication & packaging time available and 200 pounds o
f plastic available for the next production cycle. Profits per unit for each version
are Br 1 for version one, Br 5 for version two and Br 6 for each version three. A
minimum of 10 units of each version must be made to fill back orders. What is t
he optimal solution? (Use the Simplex method).
Chapter 4
7. A rural district needs a new fire truck which will cost Br 30,000,000. The distric
t is able to arrange the necessary financing provided a sinking fund is establishe
d to provide for repayment of the debt. The loan must be repaid in five years.
Money for the repayment will come from a tax increase on the local residents of
the district. The interest cost on the loan must be paid every six months as per t
he loan agreement with the province. If the district earns 8% compounded annu
ally on the sinking fund, if the interest rate on the loan is 12% compounded sem
i-annually and if the payment must be made annually to the sinking fund.
A. Set up a sinking fund schedule to show the accumulation of the fun
d and the book value of the debt for each year.
B. Show the total annual expense associated with the interest payment
and the sinkingfund payment.
8. Alex has won a scholarship for master’s degree and will leave for Canada eight
months from now. He wants to provide his mother a monthly income of Br 125
during his two years stay in Canada, the first income to be earned a month after
his departure. How much money should Alex deposit at the end of every mo
nth for eight months he will be in Ethiopia in an account which pays 12% int
erest compounded monthly to have money which is just enough to enable his
mother withdraw the above-mentioned monthly income during the two years o
f his stay in outside Ethiopia?
3
9. Ato Bekele is thinking of buying a G+2 building 5 years form now on a mortgag
e Basis at Br. 1,200, 000. The required down payment is Br. 400, 000,with monthl
y mortgage payment for 30 years at a rate of 18% compounded monthly. To cov
er the down payment Bekele has established a sinking fund account in Dashen
Bank, which pays 12% interest compounded quarterly.
A. How much Bekele should deposit at the end of every quarter to me

et 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 mortgag
e?
Chapter 5
10. Find the derivatives of the following

4 2
2 x +3 x −2
f (x)= 2
x
2
2(3 x −1)
f (x)=
x 2 +7 x
f (x)=(x ¿¿ 3)¿ ¿
x
f (x)=
√ 1−(lnx)2

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MATHEMATICS FOR MANAGEMENT

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

3. A population of 100,000 consumers makes the following purchases during a

Process Ty pe A Type B Type C Total Time availa

A. How much Bekele should deposit at the end of every quarter to me

10. Find the derivatives of the following

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