Get premium membership and access revision papers, questions with answers as well as video lessons.
Management Mathematics I(D +E) Question Paper
Management Mathematics I(D +E)
Course:Bachelor Of Commerce
Institution: Kca University question papers
Exam Year:2010
1
UNIVERSITY EXAMINATIONS: 2009/2010
SECOND YEAR STAGE 2 EXAMINATION FOR THE DEGREE OF
BACHELOR OF COMMERCE
CMS 101: MANAGEMENT MATHEMATICS I(D +E)
DATE: APRIL 2010 TIME: 2 HOURS
INSTRUCTIONS: Answer Question ONE and Any other TWO Questions
QUESTION ONE
a) A Business Invested Sh.112,000 for four years. The investment increased in value after one
year by 8%. The next year it decreased in value by 10%. The following year it increased in
value by 14% and at the end of the fourth year it decreased by 12%. What was the average
yearly change in value? ( 8 Marks)
b) A survey of 600 Jua Kali workers showed that 310 regularly listened to the seven o’clock news
on radio and that 370 regularly listened to late-night news on radio and that 370 regularly
listened to late-night news on radio, while 120 regularly listened to both news casts.
Required
i) A venn diagram for the above information (2 Marks)
ii) The number of workers who listened to:
I) The seven o’clock news but not the late night news (2 Marks)
II) Exactly one of the news broad casts (2 Marks)
iii) The number of workers workers who did not listen to either of the news broad casts
(2 Marks)
2
c) The total Revenue function of an electronics company is quadratic in nature.The table below
shows the number of laptops sold and their corresponding sales Revenues.
Number of laptops sold (x) 10 25 40
Sales revenue,R (sh’000’) 1650 3375 4200
Required
The total revenue function. (6 Marks)
d) Kimondo and Muinde were employed on the same day and their salaries were as follows:
Kimondo: Sh 22,000 per month and an increment of sh 600 at the end of every year.
Muinde : sh 20,000 per month and an increment of sh 1,000 at the end of every year.
After how many years will they earn the same salary? (8 Marks)
QUESTION TWO
a) A firm has determined that the volume,V, of sales (in units ) of a certain product is given by
the relation: V = K/(3+p) Where K is a constant and P is the price per unit of the product.
Required
(i) If 100 units are sold when selling price is sh 50, determine the value of K and state the
specific function relating the sales volume to price.
(4 Marks)
(ii) How many units would be sold at a price of sh 40? (4 Marks)
b) A manufacturer orders raw materials from a supplier who offers a quantity discount based on
the following schedule:
Quantity ordered ,q (units) Price per unit, p (sh)
q<500 60.00
500=q= 1000 54.00
q> 1000 49.50
Required
i) Formulate a function that gives the total cost ,C, as related to the quantity ordered.
(6 Marks )
3
ii) What will be the total cost when the quantity ordered is 200 units, 500 units and 1060
units. (6 Marks).
QUESTION THREE
To help plan meals to be prepared in a college cafeteria, a survey of 320 students was conducted and
the following data was obtained:
130 students ate breakfast
180 students ate Lunch
215 students ate dinner
68 students ate breakfast and Lunch
112 students ate breakfast and dinner
90 students ate dinner and Lunch
7 students ate none of the three meals
Required
a) Present the above information in a venn diagram ( 5 Marks)
b) The number of students that ate all the three meals ( 3 Marks)
c) The number of students that ate at least one meal in the cafeteria. ( 3 Marks)
d) The number of students that ate exactly one meal in the cafeteria. ( 3 Marks)
e) The number of students that ate only dinner in the cafeteria. ( 3 Marks)
f) The number of students that ate exactly two meals in the cafeteria. ( 3 Marks)
QUESTION FOUR
a) J.Otieno is a salesman employed on a fixed monthly salary and commission basis.The
commission depends on the sales made in a month. He earns sh 8,000 per month when sales are
sh 300,000. When sales are sh 250,000 he earns sh 7,000 per month.
Required
i) An equation to show his total earnings in a month. (4 Marks)
ii) The rate of commission (4 Marks)
iii) The value of basic monthly wage assuming one flat rate of commission is payable
(4 Marks)
iv) The sales per month if he earns sh 12,000 during the month (4 Marks)
4
b) break-even point is that level of output at which revenue equals cost.
Required:
Graphically show the break-even point using the cost, revenue and profit functions.
(4 Marks)
QUESTION FIVE
a) Explain the following terms as used in the mathematics of finance:
i) Compound interest . (2 Marks )
ii) Future Value of money. (2 Marks )
iii) Present value of money. (2 Marks )
iv) Effective rate of interest. (2 Marks )
b) If a sum of sh.p is invested for a period of n years at interest rate of r% per annum compounded
annually, the amount of money accumulated at the end of the period is given by: Amount = P(1
+ r )n. How would this formula change if compounding was done quarterly?
(4 Marks )
c) A company will need to spend sh 150 million on a new plant in two years time.The current rate
of interest is 20% per annum. If the interest is compounded quartery , what single sum should
be invested in order to realize the required sum of sh 150 million?
(8 Marks)
More Question Papers
Popular Exams
Return to Question Papers