INTRODUCTION TO APPLIED COMPUTING FOR

BUSINESS AND ECONOMICS

Practice Class 6

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(After students complete the assignment, submit it on Teams)

Ex 1:
Hung started running a coffee stand. He invested 40.000.000 VNĐ in a coffee machine and sold a
cup of coffee for 45.000 VNĐ. The unit cost of producing a cup of coffee is 20.000. How many
cups of coffee must Hung sell to make a profit of 20.000.000 VNĐ?

Ex 2:

You set a goal to buy an apartment for 2 billion VND after 10 years of working. To achieve the
above goal, every month you will save money and deposit it at the bank to receive savings
interest on the deposited amount. Given that the bank interest rate remains unchanged for 10
years at an interest rate of 9%/1 year. To have 2 billion in your account after 10 years of working,
how much money will you have to save every month?

Assuming the bank interest rate for 10 years will remain unchanged, maybe 6%, 8%, 10%, 12%
per year, how much money do you have to save monthly with the above interest rates?

Ex 3:

You want to open a milk tea in Lotte luxury shopping centre. Before opening the store, you want
to know how your profits, sales, and variable cost would depend on your prices and production
cost.

Suppose that the input are as follows:

Annual demand of milk tea cups = 65000 – 900 * Price (demand curve)

Annual revenue = demand * price.

Variable cost = (production cost per 1 product) * demand.

Profit/loss = Revenue – fixed cost – variable cost.

Using Whatif/Scenario to show the summary report for the following scenarios:

Scenario Selling Production cost / Fixed cost

price a cup

High cost/ high price 50 20 65,000

Medium cost/ medium price 40 15 45,000

 Low cost/ low price 35 8 25,000

Ex 4:

Company X produces 3 handicrafts: BAMBOO BASKET, RATTAN BASKET, AND

PRESSED BAMBOO PLATES. Given that:
- Production costs per unit of each item above are $15, $14, $12 respectively.
- The selling price per product unit of each item is $20, $18, $14 respectively.
Because financial resources are limited, the company must choose the optimal production
plan, among the following options:
- (1) If all 3 types of goods are produced, the total cost does not exceed $1,200.
- (2) If producing RATTAN BASKETS and PRESSED BAMBOO PLATES, the total
cost does not exceed $800.
- (3) If producing BAMBOO BASKET and PRESSED BAMBOO PLATES, the total cost
does not exceed 600$.
Determine the production plan so that the profit earned by company X is the greatest.
Ex 5:

Currently, you sell 40,000 units of a product for $45 each. The unit variable cost of producing the
product is $5. You are thinking of cutting the product price by 30 percent. You are sure this will
increase sales by an amount from 10 percent to 50 percent.

Perform a sensitivity analysis to show how profit will change as a function of the percentage
increase in sales.

Ignore fixed costs.

Ex 6:

Let’s assume that at the end of each of the next 40 years, you put the same amount in your
retirement fund and earn the same interest rate each year. Show how the amount of money you
will have at retirement changes as you vary your annual contribution from $5,000 through
$25,000 and the rate of interest varies from 3 percent through 15 percent.
Ex 7:

A computer-manufacturing plant produces mice, keyboards, and video-game joysticks. The per-
unit profit, per-unit labor usage, monthly demand, and per-unit machine-time usage are given in
the following table:

Mice Keyboards Joysticks

Profit/unit 8 11 9

Labor usage/unit 0.2 hour 0.3 hour 0.24 hour

Machine time/unit 0.04 hour 0.055 hour 0.04 hour

Monthly demand 15000 29000 11000

Each month, a total of 13,000 labor hours and 3,000 hours of machine time are available. How
can the manufacturer maximize its monthly profit contribution from the plant?

Ex 8:

At a chip manufacturing plant, four technicians (A, B, C, and D) produce three products
(Products 1, 2, and 3). This month, the chip manufacturer can sell 80 units of Product 1, 50 units
of Product 2, and at most 50 units of Product 3.

Technician A can make only Products 1 and 3.

Technician B can make only Products 1 and 2.

Technician C can make only Product 3.

Technician D can make only Product 2.

For each unit produced, the products contribute the following profit: Product 1, $6; Product 2, $7;
and Product 3, $10.

The time (in hours) each technician needs to manufacture a product is as follows:

Produc
Technician A Technician B Technician C Technician D
t
1 2 2.5 Cannot do Cannot do
2 Cannot do 3 Cannot do 3.5
3 3 Cannot do 4 Cannot do
Each technician can work up to 120 hours per month. How can the chip manufacturer maximize
its monthly profit? Assume a fractional number of units can be produced.