Summer - 2021 Online Mid Term Exam-I

NORTH SOUTH UNIVERSITY

BUS - 501 Business Mathematics
Online Mid Term Examination- I

1. Fashion designers Inc. sells each of its women’s suits to retail stores based upon volume discount
as follows; a $125 shipping and handling charge, $325 per suit for the first 50 suits, $275 per suit
for the next 60 suits, and $195 per suit for each suit in excess of 110.
a) Determine the cost function and draw its graph
b) What are total and average costs of 30 units?
c) Of 80 units?
d) Of 150 units?
e) How many suits were purchased if the total charge was $49,625?
f) If the average charge was $315.75?

2. A company has a linear total cost function and has determined that over the next three months it
can produce 10,000 units at a total cost of $550,000. This same manufacturer can produce
20,000 units at a total cost of $600,000. The selling price per unit is $4.50.
a) Determine the revenue, cost, and profit functions using q for number of units.
b) What is the fixed cost?
c) What is the marginal cost?
d) Find the break-even quantity.
e) What is the break-even dollar volume of sales?

3. The total cost, y, of producing x units is a linear function. Record show that on one occasion 110
units were made at a total cost of $200, and on another occasion, 150 units were made at a total
cost of $275. Write the linear equation for total cost in terms of number of the units produced.
What is the total cost if 250 units are made? What are the marginal cost and fixed cost?

4. Solve the following system of equations. If there is unlimited number of solutions then express in
terms of y arbitrary.
2x + 3y = 15
(8/3) x + 4y = 25
5. Solve the following system of equations. If there is unlimited number of solutions then express in
terms of y arbitrary.
4x + 3y = 4
2x + 6y = 6
-6x +6y = 1
6. Solve the following system of equations. If there is unlimited number of solutions then express in
terms of z arbitrary.
3x + 2y - 2z = - 5
4x + 3y + 3z = 17
2x - y + z = - 1