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Assignt I

The document outlines an individual assignment for a Mathematics for Management course, detailing various business scenarios involving cost analysis, revenue functions, and optimization problems. It includes specific tasks related to a milk manufacturing company, a real estate firm, a furniture company, a farmer's crop planning, and consumer purchasing behavior analysis. Students are instructed to complete the assignment without the use of AI tools, and the due date will be announced in class.

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16 views2 pages

Assignt I

The document outlines an individual assignment for a Mathematics for Management course, detailing various business scenarios involving cost analysis, revenue functions, and optimization problems. It includes specific tasks related to a milk manufacturing company, a real estate firm, a furniture company, a farmer's crop planning, and consumer purchasing behavior analysis. Students are instructed to complete the assignment without the use of AI tools, and the due date will be announced in class.

Uploaded by

f6081321
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
Mathematics for Management Individual Assignment
Instruction:
 Individual Assignment
 Your works should be neat & complete.
 Never use AI tools, if AI is detected, your assignment will be disqualified
 Due Date: Will be notified in class
1. Belleza milk manufacturing company has started producing and selling a product. In its first
year it has the following operations:
Unit selling price--------Birr 75
Unit variable cost--------Birr 45
Total revenue------------Birr 18,000
Total cost ----------------60% of total revenue
Assuming linearity, answer the following
A. What is the amount of fixed cost?
B. Develop total revenue, total cost and total profit functions in terms of quantity.
C. Develop total cost equation in terms of revenue.
D. Determine:
I. The break-even quantity
II. The break-even revenue
E. Determine the quantity level that leads to a total loss of Birr 5,000.
F. Determine the total revenue that leads to a total profit of Birr 8,000.
2. A real estate firm sold 8,000 houses earning a profit of Birr 9,000,000. Total variable costs
of the frim are Birr 3,000,000. Moreover, the company incurred a commission expense
(additional cost) of Birr 240,000 at a 2% rate.
A. Develop the total cost equation expressed in terms of
I. Quantity
II. Revenue
B. Find the break-even revenue.
C. Find the break-even quantity
3. A furniture company has two plants that produce the lumber used in manufacturing tables
and chairs. In one day of operation, plant A can produce the lumber required to manufacture
20 tables and 60 chairs and plant B can produce the lumber required to manufacture 25
tables and 50 chairs. The company needs enough lumber to manufacture at least 200 tables
and 500 chairs. If it costs 1000 Birr to operate plant A for one day and 900 Birr to operate
plant B for one day , how many days should each plant should be operated in order to
produce sufficient amount of lumber at a minimum cost? What is the minimum cost? ( use
the simplex approach )
4. A farmer owns a 100 acre farm and plans to plant at most three crops. The seed for crops A,
B and C costs Birr 40, 20, and 30 per acre, respectively. A maximum of Birr 3200 can be
spent on the seeds. Crops A, B, and C requires 1, 2 and 1 work days per acre, respectively,
and, there are a maximum of 160 work days available. If the farmer can make a profit of
Birr 100 per acre on crop A and Birr 300 per acre on crop B, and Birr 200 on crop C, how
many acre of each crop should be planted to maximize profit?

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5. A population of 100,000 consumers makes the following purchases during a particular
week: 20,000 consumers make the following purchases during a particular week: 20,000
purchases Brand A, 35,000 Brand purchase B and 45,000 purchase neither brand. From a
market study, it in estimated that of those who purchase 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 purchase as A next week, 15% will purchase Brand B next week, and 65%
will purchase neither band next week. If this purchasing pattern continues, will the market
stabilize? What will the stable distribution be?

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