SMK ST. MARY, SABAH Section A [45 marks] Answer all questions in this section.

1. (a) A saving scheme involves an initial investment of RM 1000 and an additional RM 500 at the end of each year for the next five years. Calculate the receivable sum at the end of five years assuming that the annual rate of interest paid is 5 per cent. [4] (b) What annual repayment at the end of each year will be required to repay a loan of RM 25000 over 25 years if the annual rate of interest is 9%? [3] 2. A company uses components at the rate of 500 a month which are bought at the cost of RM 1.20 each from the supplier. It costs RM 20 each time to place an order, regardless of the quantity ordered. The total holding cost is made up of the capital cost of 10% per annum of the value of stock plus RM 0.03 per item per annum for insurance plus RM 0.06 per item per annum for storage plus 0.03 per item for deterioration. (a) Determine the economic order quantity and the frequency of ordering. [5] (b) Determine the total annual cost of the ordering policy. [3] (c) If the lead time is half a month and demand can be assumed constant, what should the reorder level? [2] 3. The table below shows a pay-off matrix for player A in a zero-sum game. Player B I II III I 15 - 45 15 Player A II -15 30 -30 III 30 15 -30 Determine the optimal mixed-strategy for each player. Then find the expected value of the game. [8] 4. (a) A company is selling luxury cars. The marginal cost to produce the cars is given by C(x) = 0.2x + 4 thousand dollars where x is the number of cars produced. It has been determined that producing 10 cars cost 717,000 dollars. Find the cost function in terms of x. [4] (b) The production cost for manufacturing leather shoes consists of a fixed cost of RM39,900 and a variable cost of RM 25 per pair of shoes. Each pair of shoes sells for RM60. (i) Find the total cost and total revenue as functions of the number of pairs of shoes produced. [2] (ii) Determine the break-even point for the profit function. [2] 5. The demand and supply equations for a product are given by p = 90 7.15 q and p = 0.2q2 + 20 respectively, where p is the price in RM and q is the quantity. (a) Find the equilibrium price. [3] (b) Calculate the consumers surplus. [4] 6. Solve the following problem using the simplex method. Maximize p = 10x + y Subject to x1 20x + y 100 x 0, y 0.

[5]

Section B [15 marks] Answer any one question in this section.

7.

Draw a network (AON) for the project based on the precedence table below. [3]
Activities A B C D E F G Preceding activities A A, B A, B C C, D Duration 2 3 3 4 5 6 3 Support staff 1 2 1 1 2 2 1

(a) Determine the earliest start time and latest start time for each activity, identify the critical path and the minimum project duration. [6] (b) Construct a Gantt chart and a resource histogram for the project if all activities start as early as possible. [6] 8. A factory produces two types of products, A and B. Each unit of product A requires 2 labour hours and 1 machine hour, whereas each unit of product B requires 2 labour hours and 4 machine hours. There are not more than 120 labour hours and not more than 96 machine hours available in the factory each day. The factory also decided that the number of units of product B produced each day should not be more than 60% of the total daily production of both products A and B. The profit for each unit of A is RM120 and each unit of B is RM200. The factory intends to maximize the total profit each day. Formulate the problem as a linear programming problem. [6] By using graphical method, determine the number of units of product A and product B that should be produced daily in order to maximize the total profit, and find the maximum total daily profit. [9]