BAF2103 Quantitative Techniques Cat II

1. A calculator Company produces a scientific calculator and a graphing calculator. Long-

term projections indicate an expected demand of at least 100 scientific and 80
graphing calculators each day. Because of limitations on production capacity, no more
than 200 scientific and 170 graphing calculators can been made daily. To satisfy a
shipping contract, a total of at least 200 calculators much be shipped each day.
If each scientific calculator sold results in a profit of $ 2, but each graphing calculator
produces a 5 profit, how many of each type should be made daily to maximize net
profits? Use graphical method. (8 marks)
2. A marketing manager wants to assign four regions to four different salesmen. The
salesmen differ in their efficiency and territories also differ in potentiality. An estimated
sale (in Ks, 000s) by different sales men in the four territories are given below.

Territory

Salesman X Y Z W

A 16 13 17 23
B 7 12 37 18
C 10 25 14 9
D 25 27 18 25

Determine an optimal assignment schedule for maximum sales. ( 8marks)

3. Maureen mimi, is a proprietor in Nyeri Town, she is planning to explain her business
with an aim of making a profit of shs 160,000 within the next financial year. Analysis
of her past records revealed the following:
-Selling price per unit has been shs 200
-Variable cost was as follows: for
10000 units it was shs 800,000
30,000 unit it was shs. 2,400,000

-Fixed cost per year in the past was shs 140,000 for Maureen to attain the said
profit she has to intensity her advertisement which is estimated to cost shs.60,000.
Determine the break-even point of Maureen’s business. (8 marks)
4. Susan took two tests. The probability of her passing both tests is 0.6. The probability
of her passing the first test is 0.8. what is the probability of her passing the second
test given that she has passed the first test? (6 marks)