Linear cost, revenue and profit functions

1) Construct a linear cost, revenue and profit functions and conduct breakeven analysis also able to
solve the problems in supply-demand equations and applications in revenue.
2) Compute interest and perform annuity calculations.
3) Calculate summary measures.
Assignment Objective

b. The profit function. What profit is earned if 300 units are sold. (7 marks)
c. The number of units in order for the firm to break even. (4 marks)
d. If at least 1000 units be sold daily, what price should the firm charge per unit to
guarantee no loss. (4 marks)

2. A shop manager gets 4 rials for every units sold by salesman P and 5 rials for every units sold
   by salesman Q. His month fixed allowance is 32 rials. In addition to this salary, he will receive
   a bonus when combined sales from the two salesman P and Q exceeds 80 units. The bonus
   is 400 Baisa per unit for each unit over 80. Describe the salary function of the shop manager.
   (10 marks)
3. If the demand function for a company is given by the equation ? = 26 − 2?, and the supply
   function is given by the equation 8? = ? + 4.
   a. Find the equilibrium point. (7 marks)
   b. Check the equilibrium point graphically. (3 marks)
4. Ahamed deposit R.O 130 in a 8% account and compounded semi-annually. At the same time
   Salim deposit R.O 160 in a 6% account compounded annually. Find the time that will take for
   the amounts in the two accounts to be equal? (15 marks)
5. A person is saving money at the end each week in order to accumulate a $25,000 down
   payment for a house. How much must this person deposit weekly into an account paying
   13% compounded weekly if the down payment is needed in 5 years? (10 marks)
6. Salim has two factories A and B and he wants to see which factory is more consistent. The
   following information was taken from the grouped data of 600 workers’ in factory A.
   ∑?. ? = 12100 ∑?
   2 = 2040 ∑?. ?
   2 = 246920
   While the information of factory B is given by the following data.
   Business Mathematics and Statistics (MASC-B 1001) – Spring 2020 – CW1 (Assignment1) – All – QP
   MEC_AMO_TEM_034_01 Page 3 of 8
   Classes Frequency
   10 – 20 110
   20 – 30 99
   30 – 40 101
   40 – 50 105
   50 – 60 97
   (20 marks)
7. The table below shows the final marks in Mathematics and English obtained by 15 students
   selected at random from a large group of students.
   Math (x) 75 80 93 65 87 71 98 68 84 77 90 88 93 92 97
   English (y) 82 78 86 72 91 80 95 72 89 74 90 92 87 93 95
   a) Obtain the relationship between the final marks in Mathematics and English by
   correlation coefficient. (12 marks)
   b) Draw a scatter diagram for the data given in the table above. (3 marks)
   Rules & Regulations:
   • Title Page must have Assignment Name, Module name, Session, your name, ID, and the name of
   the faculty.
   • Softcopy in word format is to be submitted through Turnitin link on Moodle.
   Guidelines:
   • Assignment must be computer typed.
   ➢ Font - Times New Roman
   ➢ Font – Style - Regular
   ➢ Font - Size - 12
   ➢ Heading should be with Font Size 14, Bold, Capital and Underline.
   Business Mathematics and Statistics (MASC-B 1001) – Spring 2020 – CW1 (Assignment1) – All – QP
   MEC_AMO_TEM_034_01 Page 4 of 8
   • Explain with suitable diagrams wherever required. Diagrams must be drawn using by pencil.
   • Each student has to do the assignment individually.

Sample Solution