Practice Sheet

1. If total factory cost , y of making x units of a product is y = 10x + 500 and if

1000 units are made:
i) What is the variable cost?
ii) What is the total cost?
iii) What is the variable cost per unit?
iv) What is the marginal cost of the last unit made?

2. A manufacturer has a fixed cost of $40000 and a variable cost of $1.60 per
unit made and sold. Selling price is $2 per unit.
a) Find the revenue, cost and profit functions using q for number of units.
b) Compute profit if 150000 units are made and sold.
c) Compute profit if 80000 units are made and sold.
d) Find the break-even quantity.
e) Compute the break-even dollar volume of sales (revenue).
f) Construct the break-even chart. Label the cost, revenue, and fixed cost
line, and the break-even point.

3. The total cost of producing 200 pens is Tk 1000 a manufacture on the other
hand producing 400 pens at total cost is Tk 1500. Selling price per unit at
the rate of Tk 3. Take number of quantity q and total cost c.
a. Find the revenue, cost and profit functions.
b. Find marginal cost and average cost of 300 pens is made.
c. Compute sales if 600 units are made and sold.
d. If profit is Tk 2000 then find number of quantity.
e. If loss is Tk 400 then find number of quantity.
f. Find Break-even point.
g. Construct Break-even chart and level Cost line, Revenue Line, Break-even
point.
4. A company expects fixed cost of Tk 36000. Margin is to be 52% of retail and
variable cost in addition to cost of goods is estimated at Tk 0.07 per taka
of sales. Find profit function using p for sale volume.

5. A consumer goods company produces three types of baby foods P, Q and R are
each made using three different kinds of ingredients: Sugar(S), Milk(M) and
Corn(C). The ingredient requirements are shown in the table. How many of
each kind of food could be made using all available ingredients?
 Number of Ingredients Required
Types of Foods
S M C
P 1 2 2
Q 2 7 1
R 1 3 1
Total Ingredients Available 10 32 8
If the profit per P , Q and R are Tk.5 , Tk. 7 and Tk.2 respectively , then find
the maximum profit.
6. Solvethe following system of linear equations by Gaussian Elimination
Method:
− x − 2y − z = −2
3𝑥 + 5𝑦 − 𝑧 = 1
x + 4y + 3z = 0
7. The prices of 3 commodities A , B and C in a shop are Rs.5 , Rs .6, Rs .10
respectively .Customer x buys 8 units of A , 7 units of B and 6 units of
C . Customer y buys 6 units of A , 7 units of B and 8 units of C .
Show by matrix notation the prices of the commodities , quantities bought
and the amount spent .

8. Ace Construction Company builds two kinds of driveways: asphalt and

concrete. For a typical home, an asphalt driveway requires 2 tons of asphalt
and 3 tons of gravel; whereas a concrete driveway requires 1 yard of concrete
and 4 tons of gravel. Each ton of asphalt costs $50, each ton of gravel costs $25,
and each yard of concrete cost $30.During the current month, it is expected
that 100 asphalt driveways and 75 concrete driveways will be built. Using
matrix multiplication, determine the total expected materials costs.

9. A Developer Company builds two kinds of apartments: Regular and

Extraordinary. A regular apartment requires 3 windows and 4 doors and 5
balconies; whereas an extraordinary apartment requires 8 windows and 10
doors and 6 balconies. Each window costs $100, each door costs $120, and each
balcony preparation costs $200.In the coming year, it is expected that 20
regular apartments and 15 extraordinary apartments will be built. Using
matrix multiplication, determine the total expected cost of the company.

10. Suppose a finance company has 50 urban offices and 10 customer care offices.
Each urban office and customer care office has 7 Field Officers, 3 IT Officers,
1 Accountant and 1 Caretaker. The monthly salary of each of them is as Field
Officers –Tk.25000; IT Officer–Tk.22000; Accountant –Tk.15000; Caretaker –
Tk.10000.Using matrix notation, find the total monthly salary bill of each
urban office and customer care office. Also find the total monthly salary bill of
the company.