Assignment -1

Optimization Techniques (Function)

Group 2

Question 1: Assume that the life expectancy E of males in a country obeys a linear relation with
respect to time t. Given that in 1960 the life expectancy of males was 60 years and in 1985 it was
70 years.

Find the linear relation between E and t.

Using this equation, find the life expectancy of males in the year 2000.

Question 2: A company decides to set up a small production plant for manufacturing electronic
clocks. The total cost for initial set up (Fixed Cost) is Rs. 9 lakhs. The additional costs (i.e.
variable cost) for producing each clock is Rs. 300. Each clock is sold at Rs. 750. During the first
month 1500 clocks are produce and sold.

Determine cost function, revenue function, profit function and breakeven point.

What profit or loss the company incurs during the first month when all the 1500 clocks are sold?

Question 3: When the unit price of an item is Rs. 5, the daily supply will be 100. When the price
is increased to Rs. 10, the daily supply is found to be 200.

Find the supply function assume that it is linear.

Question 4: A shopkeeper charges Rs.25 per item for purchasing 20 or less items. If the
purchasing items are more than 20 and up to 50, he gives some rebate of Rs. 1 per item to all
these items, and for purchase of more than 50 items rebate of Rs. 2 per item to all these items.
Find the cost function.

Find the cost function.

Question 5: XYZ Co. Ltd. is planning to market a new model of shaving razor. The fixed cost of
the company for production of the razors is found to be Rs. 27,000 and the cost for material and
labor to produce each unit of razor is estimated to be Rs.8 per unit.

If each razor can be sold in the market for Rs.11 determine the cost function for producing the x
razors and the breakeven point.