Question 1

Which of the following statements regarding maximum profit is TRUE?

Accepted Answer

A)  The maximum profit level is   
B)  The maximum profit level is when   
C)  The maximum profit level is when    
D)  None of these are correct 
A)  The maximum profit level is   
B)  The maximum profit level is when   
C)  The maximum profit level is when    
D)  None of these are correct C

Question 2

What is the breakeven point if P = 48x - 3x2 (x is hundreds of products)

Accepted Answer

A)  200 
B)  300 
C)  400 
D)  500 
A)  200 
B)  300 
C)  400 
D)  500 C

Question 3

If the price function for a given product is pr(x) = 10 - 3x which of the following options represents the correct total revenue function?

Accepted Answer

A)  R = 10x + 3x2 
B)  R = 10x - 3x2 
C)  R = 10x - 3x 
D)  R = 10x + 3x 
A)  R = 10x + 3x2 
B)  R = 10x - 3x2 
C)  R = 10x - 3x 
D)  R = 10x + 3x B

Question 4

A Ghanaian company establishes that for one of its products = 350 and that = 600 - 2.5x. Which of the following options represents the correct function?

Accepted Answer

A)  = 250 + 2.5x 
B)  = 950 - 2.5x 
C)  = 250 - 2.5x 
D)  You cannot work this out from the data given 
A)  = 250 + 2.5x 
B)  = 950 - 2.5x 
C)  = 250 - 2.5x 
D)  You cannot work this out from the data given

Question 5

An Indian manufacturer establishes that its total cost per item function (in Indian Rupees, INR) is given by C = 6000x-1 + 2.5+ 0.03x. Work out the volume that minimises average cost (cost per item).

Accepted Answer

A)  2,000 
B)  20,000 
C)  200,000 
D)  2,000,000 
A)  2,000 
B)  20,000 
C)  200,000 
D)  2,000,000

Question 6

Which of the following options is NOT a component of the total cost function?

Accepted Answer

A)  Special costs 
B)  Fixed costs 
C)  Travel costs 
D)  Variable costs 
A)  Special costs 
B)  Fixed costs 
C)  Travel costs 
D)  Variable costs

Question 7

If demand for a product is 3,500 when the price is 7 Turkish Lira (TRY) and falls to 1,000 when the price is TRY 18 which of the following options is the correct linear demand function?

Accepted Answer

A)  pr(x) = 22.4 - 0.0044x 
B)  pr(x) = 22.4 + 0.0044x 
C)  pr(x) = -22.4 - 0.0044x 
D)  pr(x) = -22.4 + 0.0044x 
A)  pr(x) = 22.4 - 0.0044x 
B)  pr(x) = 22.4 + 0.0044x 
C)  pr(x) = -22.4 - 0.0044x 
D)  pr(x) = -22.4 + 0.0044x

Question 8

An Egyptian manufacturer has calculated a total cost function of C = 15 + 6x and a total revenue function of R = 3x + 2x2. Calculate the level of sales that maximises profit (x represents volume in '000s of units).

Accepted Answer

A)  750 
B)  800 
C)  850 
D)  900 
A)  750 
B)  800 
C)  850 
D)  900

Question 9

A company establishes that for one of its products = 400 and that = 850 - 3x. Calculate the volume (x) at which profit is maximised.

Accepted Answer

A)  150 
B)  160 
C)  170 
D)  180 
A)  150 
B)  160 
C)  170 
D)  180

Question 10

Establish the profit if a retailer can purchase 150 jackets at 270 Emirati Dirham (AED) and sell them for AED 360.

Accepted Answer

A)  AED 10,500 
B)  AED 11,500 
C)  AED 12,500 
D)  AED 13,500 
A)  AED 10,500 
B)  AED 11,500 
C)  AED 12,500 
D)  AED 13,500

Exam 28: Cost, Revenue and Profit Functions

Which of the following statements regarding maximum profit is TRUE?

What is the breakeven point if P = 48x - 3x2 (x is hundreds of products)

If the price function for a given product is pr(x) = 10 - 3x which of the following options represents the correct total revenue function?

A Ghanaian company establishes that for one of its products = 350 and that = 600 - 2.5x. Which of the following options represents the correct function?

An Indian manufacturer establishes that its total cost per item function (in Indian Rupees, INR) is given by C = 6000x-1 + 2.5+ 0.03x. Work out the volume that minimises average cost (cost per item).

Which of the following options is NOT a component of the total cost function?

If demand for a product is 3,500 when the price is 7 Turkish Lira (TRY) and falls to 1,000 when the price is TRY 18 which of the following options is the correct linear demand function?

An Egyptian manufacturer has calculated a total cost function of C = 15 + 6x and a total revenue function of R = 3x + 2x2. Calculate the level of sales that maximises profit (x represents volume in '000s of units).

A company establishes that for one of its products = 400 and that = 850 - 3x. Calculate the volume (x) at which profit is maximised.

Establish the profit if a retailer can purchase 150 jackets at 270 Emirati Dirham (AED) and sell them for AED 360.

Introduction to Business Mathematics and Statistics

Sampling and Data Collection

Data and Their Accuracy

Frequency Distributions and Charts

General Charts and Graphs

Arithmetic Mean

Median

Mode and Other Measures of Location

Measures of Dispersion and Skewness

Standard Deviation

Quantiles and the Quartile Deviation

Linear Functions and Graphs

Regression Techniques

Correlation Techniques

Time Series Model

Time Series Trend

Seasonal Variation and Forecasting

Index Relatives

Composite Index Numbers

Special Published Indices

Interest and Depreciation

Present Value and Investment Appraisal

Annuities

Functions and Graphs

Linear Equations

Quadratic and Cubic Equations

Differentiation and Integration

Set Theory and Enumeration

Introduction to Probability

Conditional Probability and Expectation

Combinations and Permutations

Binomial and Poisson Distributions

Normal Distribution

Linear Inequalities

Matrices

Inventory Control

Network Planning and Analysis

Filters

What is the breakeven point if P = 48x - 3x² (x is hundreds of products)

If the price function for a given product is p_r(x) = 10 - 3x which of the following options represents the correct total revenue function?

An Indian manufacturer establishes that its total cost per item function (in Indian Rupees, INR) is given by C = 6000x^-1 + 2.5+ 0.03x. Work out the volume that minimises average cost (cost per item).

An Egyptian manufacturer has calculated a total cost function of C = 15 + 6x and a total revenue function of R = 3x + 2x². Calculate the level of sales that maximises profit (x represents volume in '000s of units).