COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
Mathematics for Management Group Assignment
GENERAL INSTRUCTION:

Form a group of five students (±1is allowed)

Answer all the questions below neatly
Never use AI tools, if AI is detected, your assignment will be disqualified
Due Date: Last class date
MATRIX APPLICATION

1. Soft drinks Company is comparing its sales (000,000) of its products for the last two
months in two cities Addis Ababa and Dessie. The information is summarized below.

Coca Sprite Fanta

Month 1 Addis Ababa 30 40 50
Dessie 45 50 80

Coca Sprite Fanta

Month 2 Addis Ababa 40 30 60
Dessie 70 60 70

A. What are the total sales for each product during the past two months?
B. What is the total product sold in each product in month two as compared with month
one.
C. If we expect 10% increase in sales volume for each product in the third month, what
are the projected selling figures.
2. A merchandising firm sells three types of Mobile phones; Nokia (N), Apple (A) and
Samsung (S). The following matrix shows the current month sales (in 000’s units) of
mobile phones in three different cities.

Cities N A S
Paris 30 25 40
Rome 20 40 45
Bejing 35 30 40

If the cost of each of N (Nokia), A (Apple) and S (Samsung) is $100, $200, and $300
respectively and selling price is $200, $300, and $400.

A. Find the total cost of the three types of mobile phones using matrix algebra.
B. Find the total revenue using matrix algebra
C. Find the total profit using matrix algebra.

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 3. A researcher wants to investigate smoking behavior beginners. He is considering two
brands of cigarettes,Nyala and Gisila.70% % of smokers buy Nyala one month buy Nyala
again the next month.30% of smokers buyNyala one month buy Gisila the next month.
And 65% of smokers buying Gisila one month change to Nyala the next month and the
rest 35 % of smokers who buy Gisila will buy again the next month. In a sample of 1000
smokers, 700 smoke Nyala and 300 smoke Gisila in 1st month observation.
A. What is the state vector and transition matrix?
B. Determine the number of people who smoke Nyala and Gisila in the 2nd and 3rd
month.
C. Determine the steady state.

LINEAR PROGRAMMING

4. A company has budgeted a maximum of $600,000 for advertising a certain product

nationally. Each minute of television time costs $60,000 and each one-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 company to use at most 90% of the advertising
budget on television ads. How should the advertising budget be allocated to maximize the
total audience? Use graphical 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 Type A Type B Type C Total Time
available
Molding 1 2 3⁄ 12,000
2
Trimming 2⁄ 2⁄ 1 4,600
3 3
Packaging 1⁄ 1⁄ 1⁄ 2,400
2 3 2
Profit $11 $16 $15

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 minutes
each for fabrication & packaging, and 2 pounds of plastic. The 2nd version requires 12
minutes of fabrication & packaging and 3 pounds of plastic. The 3rd version requires 15
minutes of fabrication & packaging and 4 pounds of plastic. There are 8 hours of
fabrication & packaging time available and 200 pounds of plastic available for the next
production cycle. Profits per unit for each version are Birr 1 for version one, Br 5 for
version two and Birr 6 for each version three. A minimum of 10 units of each version
must be made to fill back orders. What is the optimal solution? (Use the Simplex
method).

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7.
𝑍 = 2𝑥1 + 3𝑥2 + 𝑥3
𝑥1 + 𝑥2 + 4𝑥3 ≤ 100
𝑥1 + 2𝑥2 + 𝑥3 ≤ 150
3𝑥1 + 2𝑥2 + 𝑥3 ≤ 320
𝑥1 , 𝑥2 , 𝑥3 ≥ 0
Use the simplex method to find the optimal solutions

MATHEMATICS OF FINANCE

8. ABC Inc. borrowed Br 750,000 for twenty years at 13% rate of interest compounded
annually to finance the construction of condominium houses. The council board created
sinking fund to repay the debt at the end of twenty years. Equal payments are made in to
the sinking fund at the end of each year and interest earned by the fund is 10%
compounded annually. Round all computational results to the nearest Birr.
A. Compute the total interest of the fund in the sinking fund.
B. Compute the amount at the end of the 20th year for the loan borrowed.
C. What will be the regular payment in to the sinking fund at each payment period?
D. What will be the book value of the amortization schedule at the end of the 3rd
payment period?
9. Lwam intends to open a hair dressing salon and borrows the money from Senay. Lwam
feels that she will only able to start repaying her debt after five years. Lwam will then pay
Birr 36,000 every six months for four years. Money is worth 17.95% per year
compounded semiannually.
A. What will be the present value of Lwam’s debt at the time she starts paying back.
B. What is the amount of money that Senay lends Lwam?
10. A rural district needs a new fire truck which will cost Br 300,000. The district is able to
arrange the necessary financing provided a sinking fund is established 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 the loan agreement with the province. If
the district earns 8% compounded annually on the sinking fund, if the interest rate on the
loan is 12% compounded semi-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 fund and the book
value of the debt for each year.
B. Show the total annual expense associated with the interest payment and the sinking
fund payment.

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 Calculus Applications
11. Sharp industries produce table knives. Each knife cost Birr 6 to produce and sells for
Birr 9. The quality control manager has determined from past data that out of x
knives that are produced during any given day, the fraction defective for the day is
given by x2/20,000,000, where 100< x < 1500. Each defective knife costs the
company an additional Birr 20.
Required

A. Determine the equation that gives daily profit, p, as a function of daily production volume,
x.

B. Determine the maximum daily profit and the daily production volume that yields the
maximum daily profit

12. The manager of an ocean resort wants to enclose a rectangular area of beach along
the ocean. There must be at least 500 feet of frontage along the ocean, as illustrated
below. Find the dimensions that maximize the enclosed area if 2,000 feet of fencing
are available. Find the maximum area.

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