ASSIGNMENT DIRECTION & PART I SHORT ANSWERS (8 REQUIREMENT/ Marks) Is Direction: Discuss the following concepts concisely. ( 4 X 2 Marks & Marks) -Explain the following terms: ja-Mathematical models b-Fixed cost - Variable cost -Non negativity constraint PARTII. Problem Solving (17 marks) Direction: Calculate the amount for the following questions. 1- ABC Ltd. makes a television table that sells for $80 per unit. It has variable costs of $15 per unit and incurs fixed costs of $120,000 per period. - Create the mathematical model that represents the profit. (1 mark) b- If ABC Ltd. Sells 150 tables, what would be the profit? 1 mark) - How much tables must ABC Ltd sells to break even? ( 1 mark) d- Determine the sales unit that the firm will have to reach if it is to make $20,000 profit per period. (2 marks) 2- It costs a publishing company 40,000 dollars to make books. The 40,000 is a fixed cost or a cost that cannot change. To help the publishing company sell the books, a marketing company charges 5 dollars for each book sold. If the company charge 10 dollars per book, how many books should they sell to break even?(2 marks) 3- A company has fixed costs of $300,000 and produces one product with a selling price of $80.00 and a variable cost of $40.00 per unit. The maximum factory capacity is 20,000 units and it anticipates selling 15,000 units. ja-How much profit will they make at the present level of operation? (1 mark) 5-How much profit will they make if sales increase to the maximum that the factory can supply? (1 mark) 19- A farmer can plant up to 8 acres of land with wheat and barley. He can eam $5,000 for every acre he plants with wheat and $3,000 for every acre he plants with barley. His use of a necessary pesticide is limited by federal regulations to 10 gallons for his entire 8 acres. Wheat requires 2 gallons of pesticide for every acre planted and barley requires just I gallon per acre. Let: |X=wheat Y-Barely -Determine the objective function. (1 marks) b-Determine the constraints.(3 marks) |--Determine the value of X & Y(2marks each, total=4 marks)