Ndejje University

Faculty of Business Administration

Business Mathematics Assignment 1
Deadline: 13th/April/2023
Question one
a) Distinguish between a basic feasible solution and feasible region.
b) Explain how a business manager can apply the knowledge of linear programming in
executing his/her duties.
c) A certain furniture shop makes tables and chairs using wood and labor. To make each
table, it requires 30 board feet of wood and 5 hours, whereas a chair needs 20 board feet
of wood and 10 hours. There are 300 board feet of wood available, and 110 hours of
labor available. Each table contributes $6 to the profit, and each chair contributes $8.
Find the number of chairs and tables that should be produced so as to maximize profits.
d) At KAB, Professor X wishes to employ two people, John and Mary to grade papers for
his classes. John is a graduate student and can grade 20 papers per hour. John earns $15
per hour for grading papers. Mary is an post-doctoral associate and can grade 30 papers
per hour; Mary earns $ 25 per hour for grading papers. Each must be employed at least
one hour a week to justify their employment. If Professor X has at least 110 papers to
grade each week, how many hours per week should he employ each person to minimize
the cost?
e) Professor Hamer is on a low cholesterol diet. During lunch at the Guild canteen, he
always chooses between two meals, A or B. The table below lists the amount of protein,
carbohydrates, and vitamins each meal provides along with the amount of cholesterol he
is trying to minimize. Mr. Hamer needs at least 200grams of protein, 960 grams of
carbohydrates, and 40 grams of vitamins for lunch each month. Over this time period,
how many days should he have meal A, and how many days the meal B so that he gets
the adequate amount of protein, carbohydrates, and vitamins and at the same time
minimizes his cholesterol intake?

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 A B
PROTEIN(g) 8 16
CARBOHYDRATES(g) 60 40
VITAMIN C(g) 2 2
CHOLESTRROL(g) 60 50

Question two
a)

b)

c) Given the demand function , find the elasticity of demand at the

price p = 5. Interpret the result.
d) Given the function y= f(x) = x3 + 6x2 + 25, investigate the nature of the turning points of
the function.
e) Kakoma Dairy farm exports milk to Kenya using the following cost and revenue
functions. The total cost function is TC=2q2-180q+10 while the revenue function is
TR=600q-4q2 where q is the quantity exported, find the
i) average fixed cost at 10 units of output.
ii) average variable cost at 10 units of output.
iii) quantity at which profits are maximized and hence the maximum profit.
iv) quantity at which revenue is maximized and hence the maximum revenue.
v) quantity at which costs are minimized and hence the minimum cost.

END

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