ALGEBRA

Final Examination

FULL NAME:…VO THI MINH NGOC………………………….

INTAKE:…AU 12HCM……………………
DEADLINE: 11:59 p.m, Saturday - August 6th, 2022

Your answer:
QUESTION 1

a) Total cost = fixed cost + variable cost

Fixed cost= 11,000

Variable cost= per unit variable cost ×Q = 30 ×Q=30 Q

So equation of total cost is given by

TC= 11,000+ 30Q

b) Total revenue= P ×Q

−Q
Given that price= 150 10

−Q
So, in place of P, we can put 150 10 ∈TR equation

−Q
So TR= (150 10 ) Q

= 150Q −¿ ¿

c) Total profit= total revenue – total cost

 2 2
Q Q
= 150Q – −( 11,000+30 Q )=150 Q− −11,000−30 Q
10 10

−Q2
= 120Q −11,000
10

¿ cost
d) Breakeven level of output= Revenue price−variable cost

Now, revenue price is given as $50

11,000 11,000
So, breakeven level of output= 50−30 = 20 =550 units

e) + f )
 QUES

Step 1
 Profit =

Total Revenue = Price ×Quantity

Total Cost = Fixed Cost + Variable Cost

Step 2

a) Price of car = 50,000

Fixed Cost = 1,000,000

Variable Cost = 28,000 (q)

Where (q) is the amount sold

Break Even point where the total revenue is equal to total cost which implies profit
is equal to zero.

Total Revenue = 50000 (q)

Total Cost = 1,000,000 - 28,000(q)

Profit = 50,000(q) - 1,000,000 - 28000(q)

For breakeven point, profit = 0

50,000(q) - 1,000,000 - 28000(q) = 0

 1,000,000
q= 32,000

q = 31.25 (Break Even point)

b) Now q = 100

New Fixed Cost = 1,000,000 + 2,000,000 = 3,000,000

Expected Profit = 50,000(100) - 3,000,000 - 28000(100)

Expected profit = 2,000,000 - 28, 000,00

Profit = - 800,000

c) Fixed Cost = 3,000,000 + 10,000 = 3,010,000

Variable Cost = 27000(100)

Total Cost = 57, 10,000

Total Revenue = 50,000(100)

Profit = 50, 000, 00 - 57, 10,000

Profit = -7, 10,000

Losses have reduced by 90,000.

d) Interest rate = 4.5%

Deposited Amount = 10,000

Total returned Amount in 25 years = 10000(1 + 0.045)25

= 10000(3.005)

≈ 30,054

Value of Car = 20, 0001 ×252 = 12,800

Insurance premium reclaimed = 600 + 600 = 1200

Loan Amount = 10,000

Total Money with Richard = 30,054 + 12800 + 1200 + 10000 = 54,054

Final Cost of the car with insurance and tax = 50,000 + 2100 = 52,100

So we can see that Richard can afford the car.

QUESTION 3
r
Amount after 4 years is A = P (1+¿ n ) nt
n = 4 (compounding in a year)
t=4
r = 3%
P = 2,000
0.03
A = 2,000 ×(1+ 4 ) 4x4

A 2,000 × (1.0075)16
A = 2,254
Effective Interest = 2, 254- 2, 000
Effective Interest = pounds 254