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Mathematics For Management

The document contains 5 mathematics problems related to business management: 1) A book company problem to calculate break-even point. 2) A tent manufacturer problem to maximize profit by determining the optimal number of each tent type to produce. 3) A system of equations problem to solve using inverse methods. 4) A manufacturing problem to calculate profit, break-even quantity, and break-even sales using a revenue and cost equation. 5) A loan problem to calculate simple interest and maturity value for loans with different interest rates and terms.

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chaliye fiqe
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56 views2 pages

Mathematics For Management

The document contains 5 mathematics problems related to business management: 1) A book company problem to calculate break-even point. 2) A tent manufacturer problem to maximize profit by determining the optimal number of each tent type to produce. 3) A system of equations problem to solve using inverse methods. 4) A manufacturing problem to calculate profit, break-even quantity, and break-even sales using a revenue and cost equation. 5) A loan problem to calculate simple interest and maturity value for loans with different interest rates and terms.

Uploaded by

chaliye fiqe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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RIFT VALLEY UNIVERSITY (BURAYU CAMPUS)

DEPARTMENT OF BUSINESS MANAGEMENT


Group Assignment on Mathematics For Management
( not more than 5 individual in one group)

1. A book company produces children’s books. One time fixed costs for Little Home are
$12,000 that includes fees to the author, the printer, and for the building. Variable costs
amount to $15 per book the books are then sold to bookstores around the country at $40
each. How many books must be printed and sold to break-even?
2. A manufacturer of Light Weight mountain tents makes two types of tents: REGULAR
tent and SUPER tent. Each REGULAR tent requires one labor-hour from the cutting
department and 3 labor-hours from the assembly department. Each SUPER tent requires 2
labor-hours from the cutting department and 3 labor-hours from the assembly department.
The maximum labor hours available per week in the cutting department and the assembly
department are 30 and 80 respectively. Moreover, the distributor, because of demand, will
not take more than 12 SUPERtents per week. The manufacturer sales each REGULAR
tents for $150 and costs $110 per tent to make. Where as SUPER tent ales for $210 per
tent and costs $120 per tent to make.
Required:
a. Formulate the mathematical model of the problem
b. Using the graphic method, determine how many of each tent the company should
manufacture each week so as to maximize its profit?
c. What is this maximum profit assuming that all the tents manufactured in each week are
sold in that week?
3. Solve the following equations using the inverse method.
a) 2x1 + 4x2 = 16
2x1 + 3x2 =12
b) x+2y-3Z=11
3x+2y+Z=2
2x+y - 5Z=10
4. A manufacture has a fixed cost of Birr 50,000 and a variable cost of Birr 3 per unit made
and sold at selling price of Birr 6 per unit. Required:
a. Write the revenue and cost equations
b. Computer the profit, if 20,000 units are made and sold
c. Compute the profit, if 12,000 units are made and sold
d. Find the breakeven quantity
e. Find the break-even birr volume of sales
f. Construct the break-even chart
5. Suppose, a small handicraft enterprise has requested a two year loan of Birr 6500 from
the commercial Bank of Ethiopia. If the bank approves the loan at an annual interest rate
of 7.5%,
a. What is the simple interest on the loan?
b. What is the maturity value of the loan? 2. If the above loan is offered at a rate of 21%
and is due in 3 months, what is the maturity value of the loan?

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