RIFT VALLEY UNIVERSITY NEKEMTE CAMPUS

Course: Business Mathematics for Accounting 2nd year section: A, C, D, E, F & G

Group assignment: Maximum Mark: 40%

Instructions:

 The members in one group must not exceed five.

 Copying from each other will earn less mark
 Show all computations to get your result
 Failure to submit on deadline will not be considered
 Submission deadline: 1 day before final exam date

Q1. Draw the graph for linear equations below (follow all procedures)

2x+15y=33
-x+4y=22
2y - 3x = 3
Q2. If the total factory cost (y) of making x units of a product is given by y = 3x + 20, and if 50
units are made,

a) What is the variable cost (VC)?

b) What is the total cost (TC)?
c) What is the variable cost per unit (VC/unit)?
d) What is the average cost per unit (AC/ unit)?
e) What is the marginal cost of the 50th unit?

Q3. A manufacture has a fixed cost of Birr 60,000 and a variable cost of Birr 2 per unit made and
sold at selling price of Birr 5 per unit. Required:

a) Write the revenue and cost equations

b) Computer the profit, if 25,000 units are made and sold
c) Compute the profit, if 10,000 units are made and sold
d) Find the breakeven quantity
e) Find the break-even birr volume of sales
f) Construct the break-even chart

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Q4. A Juice Company has available two kinds of food Juices: Orange Juice and Grape Juice. The
company produces two types of punches: Punch A and Punch B. One bottle of punch A requires
20 liters of Orange Juice and 5 liters of Grape Juice.1 Bottle of punch B requires 10 liters of Orange
Juice and 15 liters of Grape Juice. From each of bottle of Punch A a profit of br.4 is made and
from each bottle of Punch B a profit of br.3 is made .Suppose that the company has 230 liters of
Orange Juice and 120 liters of Grape Juice available

Required:

a. Formulate this problem as a LPP

b. How many bottles of Punch A and Punch B the company should produce in order to maximize
profit? (Using the graphical method)

c. What is this maximum profit?

Q5. Assume that you have deposited Birr 6000 at commercial Bank of Ethiopia which pays interest
of 7% per year compounded annually. Assume that you want to determine the amount of money
you will have on deposit (your account) at the end of 2 years (the first and second year) if all
interest is left in the savings account.

a) What is the amount of future value after 2 years?

b) What is the total interest for 2 years?