Matrices and Determinants - Question Bank 2 -

NEP Batch – Semester 3

Question 1: Rs. 65,000 is invested in three investments at 6%, 8%, and 9% per annum, respectively.
The total annual income is Rs. 4,800. The income from the third investment is Rs. 600 more than the
second investment's. Using matrix algebra, determine the amount of investment.
Question 2: The prices of three commodities X, Y, and Z are x, y and z per unit, respectively. Using
matrices, find the prices per unit of the three commodities. A purchases 4 units of Z and sells 3 units of
X and 5 units of Y. B purchases 3 units of Y and sells 2 units of X and 1 unit of Z. C purchases 1 unit of
X and sells 4 units of Y and 6 units of Z. In the process, A, B, C earn Rs. 6,000, Rs. 5,000, and Rs.
13,000, respectively.
Question 3: Mr. X has invested Rs. 35,000 into three investments. Part of the money is invested in a
savings account with an annual return of 6%, partly in 7% annual yield bonds, and the remainder in the
business. In 2015, when he lost 6% of the money he invested in the business, his net income from all
three investments was Rs. 660. How much was invested in each if he invested Rs. 3,000 more in the
business than in the savings account? [2017]
Question 4: A firm produces two products P1 and P2, passing through machines M1 and M2 before
completion. M1 can produce either 10 units of P1 or 15 units of P2 per hour. M2 can produce 15 units of
either product per hour. Use matrix inversion to find the daily production of P1 and P2 if the time
available is 12 hours of machine M1 and 10 hours of M2 per day. [2014]
Question 5: A company earns before-tax profits of Rs. 1, 00,000. It is committed to donating 10% of its
after-tax -profits to the Red Cross. The Central Government levies corporate taxes of 50% of profits
after deducting charitable donations and any local taxes. The company must also pay local taxes of 10%
of its profit, less the donation to the Red Cross. Compute how much the company pays in corporate
taxes, local taxes, and as a donation to the Red Cross, using Cramer's Rule.
Question 6: The prices per ton of wheat and rye are P1 and P2, respectively. The supply of wheat is
related to prices by the relation X1 = 7 + P1 - P2 and the supply of rye by X2 = - 27 - P1 + 2P2. The
market demand for wheat is given by X1 = 4 - 10P1 + 7P2 and for rye X2 = 3 + 7P1 - 5P 2.
(i) Write down the relevant simultaneous equations for determining the equilibrium
prices in matrix form.
(ii) Find the equilibrium prices and quantities using Cramer's Rule.

Question 7: Two companies A and B are holding shares in each other. A is holding 20% shares of B
and B is holding 10% shares of A. If the separately earned profits of the two companies are Rs. 98,000
and Rs. 49,000 respectively, find total profit of each company using matrix notations. Also, show that
the total of the profits allocated to outside shareholders is equal to the total of separately earned profit.

Application of Matrices and Determinants – A system of linear equations

 Matrices and Determinants - Question Bank 2 -
NEP Batch – Semester 3

Question 8: A holding company H has two subsidiaries S 1 and S2. The subsidiaries also own a portion
of the share capital H. The percentage ownership of the group is given below:

Owners of Shares Percentage of Share Capital Held in Company

H S1 S2

H 0 60 80
S1 3 0 10
S2 6 10 0
Outside 91 30 10
Shareholder

Total 100 100 100

If the separately earned net profits of H, S1 and S2 are Rs. 30,000, Rs. 17,500 and Rs. 5,000 respectively,
find the total net profit of each company (separately earned profit plus share in the profits of the other
companies) by using matrix algebra. Also, verify that the sum allocated to the outside shareholders
equals the sum of the companies' separately earned profits.
Question 9: A manufacturer produces three products A, B and C. The profits for each unit sold of A, B
and C are Rs. 10, Rs. 20 and Rs. 30 respectively. Fixed costs are Rs. 1, 70,000 per year and the cost of
producing each unit of A, B and C are Rs. 40, Rs. 50 and Rs. 70 respectively. Next year a total of 11,000
units of all three products will be produced and sold, and a profit of Rs. 2,50,000 will be realized. If total
cost is Rs. 8, 00,000; how many units of each product should be produced next year, using matrix
algebra?
Question 10: One unit of commodity A is produced by combining 1 unit of land, 2 units of labour and 5
units of capital; One unit of B is produced by combining 2 units of land, 3 units of labour and 1 unit of
capital; one unit of C is produced by 3 units of land, 1 unit of labour and 2 units of capital. If the price of
A, B and C are Rs. 27, 16 and 19 respectively, find the rent R, wages W and rate of interest I. [2018]
Question 11: In an engineering workshop, there are 10 machines for drilling, 8 for turning and 7 for
grinding. Three types of brackets are made with the help of these machines. Type I brackets require 0
minutes for drilling, 5 minutes for turning and 4 minutes for grinding. The corresponding times for Type
II and III brackets are 3, 3, 2, and 3, 2, 2 minutes, respectively. How many brackets of each type should

Application of Matrices and Determinants – A system of linear equations

 Matrices and Determinants - Question Bank 2 -
NEP Batch – Semester 3

be produced per hour so that all the machines remain fully occupied for an hour? Solve using matrix
algebra? [2008; 2010]
Question 12: A firm produces and sells 80, 150, and 50 units, respectively of three products P, Q, and
R. The per unit cost of producing and selling these products is Rs. 30, 40, and 20, respectively. To get an
overall profit of Rs. 2,800, what should be the price of each of these products so that the price of Q is
25% higher than that of P and the price of P is half of the combined price of Q and R?

Question 13: A firm produces three products P1, P2, and P3 processed on 3 machines M1, M2 and M3,
before completion. M1 can process 25 units of P1 or 50 units of P2 or 75 units pf P3 per hour. M2 can
process 50 units of any product per hour. M 3 can process 50 or 25 or 100 units per hour of the products
P1, P2 and P3, respectively. The processing hours available on machines M 1, M2 and M3 are 12, 12 and
13, respectively. Using matrix notation, find:-
a) How many units of three products can be produced per day?
b) The production cost per unit, if costs per hour of operating machines M 1, M2, and M3 are Rs. 500,
Rs. 1,000, and Rs. 1,500, respectively.
c) The total cost of production.
[2005, 2009, 2017, 2022-2023 B.com(H) DU]

Question 14: A transport company uses 3 types of trucks T1, T2 and T3 to transport 3 types of materials
A, B, and C. The carrying capacity of each truck in tons with respect to each of the three types of
materials is given below:-

Trucks Material A Material B Material C

T1 5 4 4
T2 3 8 6
T3 2 6 4
The transport company transported 184, 332 and 260 tons of materials A, B and C respectively, charging
Rs. 1,160 thousand for all the trucks. Rate charged in respect of T 1 is double the rate charged in respect
of T3; the rate charged in respect of T2 is 1.5 times the rate charged in respect of T1. Find out the rate
charged by transporter for each type of truck.

Application of Matrices and Determinants – A system of linear equations

 Matrices and Determinants - Question Bank 2 -
NEP Batch – Semester 3

Question 15: A firm has 3 service departments S1, S2 and S3 and two production departments P1 and P2.
The direct cost of each department and the percentage of total cost of each service department allocated
to various dpertments are given below:-

Department Direct cost(Rs.) S1 S2 S3

S1 18,600 0 30 10
S2 1,02,600 20 0 10
S3 36,000 10 10 0
P1 2,20,000 40 30 30
P2 1,80,000 30 30 50
Total 100 100 100
Using matrix algebra, determine the total cost for each service department, allocate service department
cost to the production departments, and find the total cost(direct + allocated). Verify that the sum of
service department costs allocated to the production departments is equal to the direct costs of the
service departments.
Question 16: ABC Co. Ltd has two service departments S1 and S2 and four production departments P1,
P2 and P3 and P4. Overheads are allocated to each production department for inclusion in the stock
valuation. The analysis of the benefits received by each department during the last quarter and the direct
overhead expenses incurred by each department were:-

Departments S1 S2 P1 P2 P3 P4
S1 0 20 30 25 15 10
S1 30 0 10 35 20 5
Direct cost(in Rs. 000) 20,000 40,000 25,000 30,000 20,000 10,000
a) Express the total overhead of the service departments in the form of simultaneous equations.
b) Express these equations in a matrix form and solve for the total overhead of service departments
using the matrix inverse method.
c) Determine the total overheads allocated to the production departments from each S1 and S2.

Application of Matrices and Determinants – A system of linear equations