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BM Assignment

Business mathematics assignment

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LENCHO MAHAMMED
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54 views2 pages

BM Assignment

Business mathematics assignment

Uploaded by

LENCHO MAHAMMED
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Oda Bultum University


Department of Accounting and Finance
Business mathematics group assignment for accounting and finance 2nd year
regular students
Weight: 20%
Submission date: December 25,2024
1. GEACH electronics business is an infant manufacturing company. Assume that currently,
you are employed as an assistant business analyst in the company. When you survey the
past few years’ data, you observe for a given year that the company has incurred a total
production cost of Birr 2,000,000 to produce 50,000 units of product. You find the profit at
this level to be zero. The production cost per unit is 60% of the selling.
Required:
a) What is the fixed cost and unit variable cost of GEACH Company?
b) What is the break-even revenue?
c) How many units should be produced to earn a profit of Birr 200,000?
2. ABC Carpet Company has in inventory 1,500 square yards of wool and 1,800 square yards
of nylon for the manufacture of carpeting. Two grades of carpeting are produced. Each roll
of superior grade carpeting requires 20 sq. yards of wool and 40 square yards of nylon. Each
roll of quality-grade carpeting requires 30 square yards of wool and 30 square yard of nylon.

Required: If ABC would like to use all the material in inventory, how many rolls of
superior and how many rows of quality carpeting should be manufactured?
3. Mr. Habtamu invested a total of 10,000 in three different savings accounts. The accounts
paid simple interest at an annual rate of 8 percent, 9 percent and 7.5 percent respectively.
Total interest earned for the year was Br 845. The amount in the 9 percent account was
twice the amount invested in the 7.5 percent account. How much did Habtamu invest in
each account?
4. A cereal manufacturer makes two different kinds of cereal, Senior Citizen’s Feast and Kids
Go. Each pound of Senior Citizen’s Feast requires 0.6 pound (lb) of wheat and 0.2 lb of
vitamin enriched syrup, and each pound of Kids Go requires 0.4 lb of wheat, 0.2 lb of sugar,
and 0.2 lb of vitamin-enriched syrup. Suppliers can deliver at most 2800 lb of wheat, at
most 800 lb of sugar, and at least 1000 lb of the vitamin-enriched syrup. If the profit is
$0.90 on each pound of Senior Citizen’s Feast and $1.00 on each pound of Kids Go, find the
number of pounds of each cereal that should be produced to obtain maximum profit and
find the maximum profit using simplex method.

December 4, 2024
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5. A tire industry produces Grade A and Grade B tires using its two machines I and II. Grade
A tire has to be processed for 20 minutes by machine I and 10 minutes by machine II, while
Grade B tire has to be processed for 30 minutes by machine I and 40 minutes by machine
II. The firm can use at least 1,400 minutes per week on machine I and at least 1,200 minutes
on machine II. If the production cost per unit on Grade A and Grade B tires is $50 and $80,
respectively, how many tires of each type must be produced to minimize the weekly cost?
Using graphic method.
6. A diet is to include at least 140 mgs of vitamin A and at least 145 Mgs of vitamin B. These
requirements are to be obtained from two types of foods: Type 1 and Type 2. Type 1 food
contains 10Mgs of vitamin A and 20mgs of vitamin B per pound. Type 2 food contains
30mgs of vitamin A and 15 mgs of vitamin B per pound. If type 1 and 2 foods cost Birr 5
and Birr 8 per pound respectively, develop liner programming model on how many pounds
of each type should be purchased to satisfy the requirements at a minimum cost?

December 4, 2024

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