Progress Exercise 2 : Applications of Equations & Inequalities

1. The Smith Company management would like to know the total sales units that are
required for the company to earn a profit of $150, 000. The following data are available;
unit selling price of $50; variable cost per unit of $25; total fixed cost of $500, 000. From
these data, determine the required sales units.
2. You invested RM120,000, pat oat an rate of 4% annually and the remainder at 5%
annually. The total interest at the end of 1 year was equivalent to an annual 4.5% rate on
the entire RM120,000. How much was invested at each rate?
3. The cost of a product to retailer is RM3.40. If the retailer wishes to make profit of 20% on
selling price, at what price should the product be sold?
4. Over a period of time, the manufacturer of a caramel-center candy bar found that 3.1%
of the bars were rejected for imperfections.
a. If candy bars are made in a year, how many would the manufacturer expect to
be rejected?
b. This year, annual consumption of the candy is projected to be six hundred million
bars. Approximately how many bars will have to be made if rejections are taken
into considerations?
5. You are the chief financial advisor to a corporation that owns an office complex
consisting of 50 units. At $400 per month, every unit can be rented. However, for each
$20 per month increase, there will be two vacancies with no possibility of filling them.
The corporation wants to receive a total of $20,240 per month from rents in the complex.
You are asked to determine the rent that should be charged for each unit. What is your
reply?
6. A manufacturer of video game sells each copy for RM21.95. The manufacturing cost of
each copy is RM14.92. Monthly fixed cost are RM8500. During the first month of sales a
new game, how many copies must be sold in order for the manufacturer to break even?
7. The Minah Company manufactures a product that has unit selling price at RM20 and a
unit cost of RM15. If the fixed cost are RM600,000, determine the least number of units
that must be sold for the company to have a profit.
8. At present a manufacturer has 2500 units of product in stock. The product is now selling
at RM4 per unit. For the next batch of the product, the unit price will increase by RM0.50.
The manufacturer wants the total revenue received from the sale of the 2500 units to be
no less than RM10,750. What is the maximum number of unit that can be sold this
month?
9. The cost of publication of each copy of a magazines is RM1.30. It is sold to dealers for
RM1.50 per copy. The amount received for advertising is 20% of the amount received
from all magazines sold beyond 100,000. Find the least number of magazines that can
be published profitably if 80% of the issues published are sold.