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BUSINESS MATHEMATICS SEMESTER I - SESSION 2010/2011 (TAKE HOME QUIZ) Name : ID :

xaraprotocol

Tutorial Group :

1. A concert had brought in $432,500 on the sales of 9,500 tickets. If the tickets sold for the price
of $35 and $55 each, how many each type of ticket were sold? Solutions : $35x + $55y = $432,500.(1) x + y = 9,500 .(2) from (2); x = 9,500 y subs. (3) into (1); 35 (9,500 y) + 55y = 432,500 332,500 35y + 55y = 432,500 20y = 432,500 332,500 y= 100,000 = 5,000 20 .: y = 5,000 pieces of tickets. If y = 5,000 , find x by subs. y into (3); x = 9,500 (5,000) = 4,500 .: x = 4,500 pieces of tickets. .(3)

2. Retail prices in a department store are obtained by marking up the wholesale price by 40%.
That is, retail price is obtained by adding 40% of the wholesale price to the wholesale price.

a. What is the retail price of a suit if the wholesale price is $300? b. What is the wholesale price of a pair of jeans if the retail price is $77?
Solutions : Wholesale price = 100% Retail price = 40% + 100% = 140% a. if the wholesale price is $300 ; $300 = 100% for every 1% = $300 = 3 100 thus, the retail price; 140 x 3 = 420 .: retail price is $420. b. if the retail price is $77 ; $77 = 140% for every 1% = $77 = 0.55 140 thus, the wholesale price; 100 x 0.55 = 55 .: wholesale price of a pair jeans is $55.

3. A second employee of the computer sore is paid a basic salary of $3,000 a month plus 5%
commission on all sales during the month.

a. How much must this employee sell in one month to earn a total of $4,000 for the
month? b. Determine the sales level at which both employee receive the same monthly income. c. If employees can select either of these payment methods, how would you advise your employee to make this selection? Solutions : a. $4,000 $3,000 = $1,000 $1,000 is 5% commission on the sale to find the sales, lets A be the sales; 5% x A = $1,000 A = 1,000 = 20,000 0.05 .: the employee need to sell $20,000. b. same monthly income = commission is $3,000 $3,000 is 5% commission on the sale to find the sales, lets B be the sales; 5% x A = $3,000 A = 3,000 = 60,000 0.05 .: the sales level is at $60,000. c.

4. A publisher for a promising new novel figures fixed costs (overhead, advances, promotion,
copy editing, typesetting) at $55,000 and variable cost (printing, paper, binding, shipping) at $1.60 for each book produced. If the book sold to the distributor for $11 each, how many must be produced and sold to the publisher for breakeven. Solutions : Lets x be the no. of books; TR = $11x TC = $1.60x + $55,000 breakeven occurs when TR = TC thus, TR = TC $11x = $1.60x + $55,000 11x = 1.6x + 55,000 11x-1.6x = 55,000 9.4x = 55,000 x = 55,000 = 5851.06 9.4 .: 5,852 books must be produced.

5. A donut shop has a fixed cost of $124 per day and a variable cost of $0.12 per donut. Find the
total daily cost of producing x donut. How many donuts can be produced for a total daily cost of $250? Solutions : TC = $124 + $0.12x if the cost is $250, then; $124 + $0.12x = $250 124 + 0.12x = 250 0.12x = 250 124 = 126 x = 126 = 1,050 0.12 .:1,050 donuts can be produced daily.

6. Find and simplify each of the following and assume h is not 0 in (c) a. f(x+h) b. f(x+h)-f(x) c. f(x+h)-f(x) h i. ii. iii. Solutions : i. f(x) = 4x-3 a. f(x+h) = 4(x+h) - 3 = 4x + 4h - 3 = 4x + 4(0) 3 = 4x - 3 b. f(x+h)-f(x) = (4x-3) - (4x-3) =0 c. f(x+h)-f(x) = 0 h =0=0 0 ii. f(x) = -3x+9 a. f(x+h) = -3 (x+h) + 9 = -3x 3(0) + 9 = -3x + 9 b. f(x+h)-f(x) = (-3x+9) (-3x+9) =0 c. f(x+h)-f(x) = 0 h h =0=0 0 iii. f(x) = x(x+40) = x2 + 40x a. f(x+h) = (x+h)2 + 40(x+h) = x2 + h2 + 2hx + 40x + 40h b. f(x+h)-f(x) = (x2 + h2 + 2hx + 40x + 40h) (x2 + 40x) = h2 + 2hx + 40h c. f(x+h)-f(x) = h2 + 2hx + 40h h h = h + 2x + 40 f(x) = 4x-3 f(x) = -3x+9 f(x) = x(x+40)

7. The demand function for a manufacturers products id P=f(q)=200-5q, where p is the price (in
$) per unit when q units are demanded (per day). Find the level of production that maximizes the manufacturers total revenue and determine this revenue. Solutions : P = f(q) = 200-5q Revenue, r = pq = (200 - 5q) q = 200q - 5q2

So, a = -5, b = 200, c = 0 q = -b = -200 = 20 2a 2(-5) .:q = 20 if q = 20, find r by subs. q into r, r = 200(20) 5(20)2 = 2,000 .: it maximizes the total revenue at $2,000, which if produced 20 units.

8. Anne makes two investments and thee percentage return per year on each was the same. Of
the total amount invested,, 3/10 of it plus $600 was invested in one venture, and at the end of 1 year the person received a return of $384 from that venture. If the total return after 1 year was $1120, find the total amount invested. Solutions : Let x be the total amount invested and y be the interest y (0.3x + 600) = 384 y (0.7x) = 736 y = 736 0.7x subs. y into (1); (736) (0.3x + 600) = 384 0.7x 220.8x 441,600 = 384 0.7x 220.8x - 441,600 = 384 (0.7x) 220.8x - 441,600 = 268.8x -48x = 441,600 x = -9200 .: the total amount is $9,200 .(1) .(2)

9. The market equilibrium point for a product occur when 13,500 units are produced at a price of
$4.50 per unit. The producer will supply no units at $1, and the consumer will demand no units at $20. Find the supply and demand equations if they are both linear. Solutions :

20

Equilibrium point, (13500,4.5)

1
D

Y = mX + C,

m = Y2 Y1 X2 X1

Demand Equation ; points are (0,20) and (13500,4.5) where C = 20 m = 4.5-20 = -15.5 13500-0 13500 .:S = Y = -0.155 x + 20 135 Supply Equation ; points are (0,1) and (13500,4.5) where C = 1 m = 4.5 1 = 3.5 13500-0 13500 .: D = Y = 0.035 x + 1 135