Reference no: EM132699224

1. XYZ company's cost function for the next four months is
C = 500,000 + 5Q
a) Find the BE dollar volume of sales if the selling price is br. 6 / unit
b) What would be the company's cost if it decides to shutdown operations for the next four months
c) If, because of strike, the most the company can produce is br. 100,000 units, should it shutdown? Why or why not?

2. In its first year, "Abol Buna Co" had the following experience
Sales = 25,000 units Selling price = br. 100
TVC = br. 1,500,000 TFC = br. 350,000

Required:
1. Develop Revenue, cost & profit functions for the co. in terms of quantity.
2. Find the Breakeven point in terms of quantity
3. Convert the cost equation in terms of quantity in to a cost equation in terms of revenue
4. Find the Breakeven revenue
5. If profit had been br. 500,000 what would have been the sales volume (revenue) & the quantity of sales
6. What would have been the profit if sales are br. 2,000,000.
3. A small home business set up with an investment of $ 10,000 for equipment. The business manufactures a product at a cost of br. 0.64 per unit. If the product sales for Br. 1.20 per unit how many units must be sold before the business breaks even?
4. A retail co. plans to work on a margin of 44% of retail price & to incur other Variable Cost of 4%. If is expected Fixed cost of Br. 20,000.
i. Find the equation relating Total Cost to sales
ii. Find the profit if sales are Br. 60,000
iii. Find the breakeven revenue
iv. If profit is Br. 15,000 what should be the revenue level?
7. A certain manufacturer produces two product P & q. Each unit of product P requires (in its production) 20 units of row material A & 10 units of row material B. each unit of product of requires 30 units of raw material A & 50 units of raw material B. there is a limited supply of 1200 units of raw material A & 950 units of raw material B. How many units of P & Q can be produced if we want to exhaust the supply of raw materials?
8. Attendance records indicate that 80,000 South Koreans attended the 2002 world cup at its opening ceremony. Total ticket receipts were Birr 3,500,000. Admission prices were Birr 37.5 for the second-class and Birr 62.50 for the first class. Determine the number of South Koreans who attended the football game at first class and second class.
9. A company produces three sizes of window fans: small, medium and large. The manager has formulated an LPM for fan production:

Briefly explain or define each of these parts of the model:
A.
B. No 6 in the objective function
C. The term labor, metal and plastic
D. The 160 hour
E.
10. If you have Br. 100,000 in an account that pays 6% compounded monthly and I you decide to withdraw equal monthly payments for 10 years at the end of which time the account will have a zero balance, how much should be withdrawn each month?
11. Ato Liku purchases a house for Br. 250, 000. He makes a 20% down payment, with a balance amortized by a 30 year mortgage at an annual interest rate of 12% compounded monthly.
a) Determine the amount of the monthly mortgage payment.
b) What is the total amount of interest Ato Liku will pay over the life of the mortgage?
c) Determine the amount of the mortgage Ato Liku will have paid after 10 years?
12. How much should be deposited in an account paying 10% compounded quarterly in order to have a balance of Br. 10, 000 ten (10) years from now? What would be the amount of compound interest after 10 years?
13. At what interest rate you should invest Br. 5000, if you want to receive an amount of Br. 7,000 in 8 years time.
14. Thomas Private Limited Company is about to start production of new products to sell to customers. Before the start of the new production, it costs the company $ 200,000 to construct the factory's building. Once the construction is over, the cost per unit of production is estimated to be birr 20. Upon selling, the company will incur a 20% commission expense. Moreover, the price per unit of products is decided to be Birr 50.

Required:
a) Construct the total cost equation in terms of quantity.
b) Determine the break-even quantity (Revenue)

15. In its first year, "Helen Trading" had the following experience:
Unit selling price birr 100 Sales 50,000 units
Total fixed cost birr 400,000 TVC birr 3,000,000
Required:
a) Develop TR, TC and profit functions for the company in terms of quantity
b) Find the breakeven point in terms of quantity and sales volume.
c) If profit had been br. 500,000 what would have been the sales volume (Revenue) and quantity of sales.
d) What would have been the profit if sales are br. 2,000,00
16. ALUMMUNI PLC. Produces three models of tractors: Metakeb, Mewesson, Metekem Each unit of Metakeb, Mewesson and Metekem requires the following amounts of time in minumtes in each of the indicated department
Machining dep't Assembly dep't Inspection dep't
(in minutes) (in minutes) (in minutes)
Metakeb 1200 2400 600
Mewesson 1800 1200 3000
Metekem 3000 2400 1200
Suppose the total time available per month in machining, assembly and inspection departments are 1050, 1160 and 830 hours respectively.
Required:
Determine the number of units of each product to be produced in a month to use up all the available resources (use Gaussaian method.
17. Attendance record indicated that 80,000 South Koreans attended the 2002 world cup at its opening ceremony. Total ticket receipts were $ 3,500,000. Admission prices were $ 37.50 for the second class and $ 62.50 for the first class. Determine the number of South Koreans who attended the opening ceremony at the first and second class
18. There are two competing brands of toothpastes in a market. The brands are colget and Akuafresh. A survey was undertaken to determine the extent customers switch over from one brand to another every quarter. The survey has identified that every quarter 1/3 of 45% of customers of Akuafresh in the previous quarter continue to purchase Akuafresh. And ¾ of 60% customers of colget in the previous quarter become customers of Akuafresh. Moreover, it was identified that the two brands have a constant customers of 10,000 and no one stops purchasing one or the other brand. Currently the number of customers of colget are 6000 persons
Required:
a. What will be the number of customers of colget and Akuafresh after two
transitions?
b. Find the steady state market share.
19. Abush Manufacturing Company produces two different types of Tractor. These are Hiwot and Durex. Hiwot requires 9 minutes to assemble and 2 minutes to package. While Durex requires 12 minutes to assemble and 6 minutes to package. In addition, each type has an engine. The company has 720 minutes of assembly time available 75 engines and 300 minutes of packaging time. Profits are b. 45 for Hiwot and br. 70 for Durex both per unit.
Required:
a. Formulate the Linear anagramming model for the problem. (Show all the necessary steps)
b. Determine how many tractors of each type to make in order to maximize total profit (use simplex method)
c. Interpret your result
20. Ato Bekele is thinking of buying a G+2 building 5 years form now on a mortgage
basis. The building will be used for office purpose for his new business that costs
Br. 500, 000. The required down payment is Br. 100, 000,with monthly mortgage
payment for 30 years at a rate of 12% compounded monthly. To cover the down
payment Bekele has established a sinking fund account in Dashen Bank, which
pays 10% interest compounded quarterly.
Required: a) How much Bekele should deposit at the end of every quarter to meet 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 mortgage?
21. Find the derivatives of the following
a) f (X) = 25
b) g (X) = X⁶
c) h (X) = 1/X⁴
d) f (X) = 5X³ + 3X⁴
e) g (X) = (3X² - 3) (X + 5)

Attachment:- Review questions.rar