Hawassa University

Department of Accounting and Finance

Business Mathematics Assignment II on Linear Programming
1. W/r Worknesh raises only geese and pigs. She wants to raise no more than 16 animals, including
no more than 10 geese. She spends Br.5 to raise a goose and Br.15 to raise a pig, and she has
Br.180 available for this project. She wishes to maximize her profits. Each goose produces Br.6 in
profit and each pig Br.20 in profit.
Instruction:
A. Set up (Formulate) the linear programming model.
B. Solve the LPM Using Graphic method (How many of each animal should be raised)
C. Interpret your result
2. The Hi-Fi Record Store is about to place an order for cassette tapes and compact disks. The
distributor from which they order requires that each order must request at least 250 items. The
ordering costs that Hi-Fi must pay are $3.50 for each cassette and $7.50 for each compact disk. The
distributor also requires that at least 30% of any order be for compact disks. How many cassettes
and how many compact disks should Hi-Fi order so that its total ordering costs will be kept to a
minimum?
Instruction:
A. Set up (Formulate) the linear programming model.
B. Solve the LPM Using Graphic method (How many cassettes and how many compact disks
should Hi-Fi order)
C. Interpret your result
3. Fly-High Airlines sells business class and tourist class seats for its charter flights. To charter a
plane at least 5 business class tickets must be sold and at least 9 tourist class tickets must be sold.
The plane does not hold more than 30 passengers. Fly-High makes $40 profit for each business
class ticket sold and $45 profit for each tourist class ticket sold. In order for Fly- High Airlines to
maximize its profits, how many tourist class seats should they sell?
Instruction:
A. Set up (Formulate) the linear programming model.
B. Solve the LPM Using Simplex Method (how many tourist class seats should they sell)
C. Interpret your result
4. The Plexus Dance Theatre Company will appear at the University of Georgia. According to school
policy, no more than 2000 general admission tickets can be sold and no more than 4000 student tickets
can be sold. It costs $0.50 per ticket to advertise the dance company to the students and $1 per ticket to
advertise to the general public. The dance company has an advertising budget of $3000 for this show.
It charges $4 for a student ticket and $7 for a general admission ticket.
Instruction:
A. Set up (Formulate) the linear programming model.
B. Solve the LPM Using Graphic method (How many student tickets should they sell?
C. Find the profit the company can make at optimal solution.
D. Interpret your result

Page 1 of 4
 5. Reynaldo Electronica manufactures radios and tape players. The manufacturing plant has the
capacity to manufacture at most 600 radios and 500 tape players. It costs the company $10 to make
a radio and $12 to make a tape player. The company can spend $8400 to make these products.
Reynaldo Electronica makes a profit of $19 on each radio and $12 on each tape player.
Instruction:
A. Set up (Formulate) the linear programming model.
B. Solve the LPM Using Graphic method (how many of each product should they manufacture)
C. Find the profit the company can make at optimal solution.
D. Interpret your result
6. A firm is engaged in producing two products, A and B. each unit of product A requires 2 kg of raw
material and 4 labor hrs for processing, whereas each unit of product B requires 3 kg of raw
material and 3 hrs of labor, of same type. Every week the firm has an availability of 60 kg of raw
material and 96 labor hours. One unit of product A sold gives $40 and one unit of product B sold
yields $ 35 as profit. Formulate an LPP using the above information and solve it using the graphic
method.
Instruction:
A. Set up (Formulate) the linear programming model.
B. Solve the LPM Using Simplex Method (how many of each product should they
manufacture)
C. Find the profit the company can make at optimal solution.
D. Interpret your result
7. The agricultural research institute suggested to a farmer to spread out at least 4800 kg of a special
phosphate fertilizer and not less than 7200kg of special nitrogen fertilize to raise productivity of
crops in his fields. There are two sources for obtaining these mixtures, A and B. both of these are
available in bags weighting 100kg each and they cost $40 and $ 24 respectively. Mixture A
contains phosphate and nitrogen equivalent of 20 kg and 80 kg respectively, while mixture B
contains these ingredients equivalent of 50 kg and each. Write this as LPM and determine how
many bags of each type should he buy in order to obtain the required fertilizer at minimum cost?
8. Pure Gasoline Company operates two refineries with different production capacities. Refinery A
can produce 4,000 gallons per day of super unleaded gasoline, 2000 gallons per day of regular
unleaded gasoline, and 1,000 gallons per day of leaded gasoline. On the other hand refinery B can
produce 1,000 gallons per day of super unleaded, 3,000 gallons per day of regular unleaded and
4,000 gallons per day of leaded. The company has made a contract with an automobile
manufacturer to provide 24,000 gallons of super unleaded, 42,000 gallons of regular un-leaded and
36,000 gallons of leaded. Determine the number of days the company should operate each refinery
in order to meet the terms of the contract most economically, the minimum cost.
9. Solve the following LPP by graphical method
Minimize Z = 20X1 + 40X2
Subject to
36X1 + 6X2 ≥ 108
3X1 + 12X2 ≥ 36
20X1 + 10X2 ≥ 100,

Additional Exercises
Q1. A firm that assembles computer and computer equipment is about to start production of two new
microcomputers. Each type of micro-computer will require assembly time, inspection time and storage
space. The amount of each of these resources that can be devoted to the production of microcomputers

Page 2 of 4
 is limited. The manager of the firm would like to determine the quantity of each microcomputer to
produce in order to maximize the profit generated by sales of these microcomputers.
Additional information
In order to develop a suitable model of the problem, the manager has met with design and
manufacturing personnel. As a result of these meetings, the manager has obtained the following
information:
Type 1 Type 2
Profit per unit Birr 60 Birr 50
Assembly time per unit 4hrs 10hrs
Inspection time per unit 2hrs 1hr
Storage space per unit 3cubic ft 3cubic ft
The manager also has acquired information on the availability of company resources. These weekly
amounts are:
Resource Resource available
Assembly time 100hrs
Inspection time 22hrs
Storage space 39 cubic feet
The manager also meet with the firm’s marketing manager and learned that demand for the
microcomputers was such that whatever combination of these two types of microcomputer is produced,
all of the output can be sold.
Required: Formulate the Linear programming model.
Q2. An electronics firm produces three types of switching devices. Each type involves a two-step
assembly operation. The assembly times are shown in the following table:
Assembly time per Unit (in minutes)
Station 1 Station 2
Model A 2.5 3.0
Model B 1.8 1.6
Model C 2.0 2.2
Each workstation has a daily working time of 37.5 hrs. The manager wants to obtain the greatest
possible profit during the next five working days. Model A yields a profit of Birr 8.25 per unit, Model
B a profit of Birr 7.50 per unit and Model C a profit of Birr 7.80 per unit. Assume that the firm can sell
all it produces during this time, but it must fill outstanding orders for 20 units of each model type.
Required:
A. Formulate the linear programming model of this problem.
B. Solve the LPM Using Simplex Method
C. Interpret your result
Q3. A diet is to include at least 140 mgs of vitamin A and at least 145 Mgs of vitamin B. These
requirements are to be obtained from two types of foods: Type 1 and Type 2. Type 1 food contains
10Mgs of vitamin A and 20mgs of vitamin B per pound. Type 2 food contains 30mgs of vitamin A and
15 mgs of vitamin B per pound. If type 1 and 2 foods cost Birr 5 and Birr 8 per pound respectively.

Vitamins
Foods A B
Type 1 10 20
Type 2 30 15
Required:
A. Formulate the linear programming model of this problem.

Page 3 of 4
 B. Solve the LPM Using Graphic Method
C. Interpret your result
Q4. A Juice Company has available two kinds of food Juices: Orange Juice and Grape Juice. The
company produces two types of punches: Punch A and Punch B. One bottle of punch A requires 20
liters of Orange Juice and 5 liters of Grape Juice.1 Bottle of punch B requires 10 liters of Orange Juice
and 15 liters of Grape Juice. From each of bottle of Punch A a profit of $4 is made and from each
bottle of Punch B a profit of $3 is made. Suppose that the company has 230 liters of Orange Juice and
120 liters of Grape Juice available
Required:
A. Set up (Formulate) the linear programming model.
B. How many bottles of Punch A and Punch B the company should produce in order to maximize
profit? (Using the Graphic method)
C. Find the profit the company can make at optimal solution.
D. Interpret your result
Q5. Solve the problem using the simplex approach
Max.Z=300x1 +250x2
Subject to:
2x1 + x2 < 40 (Labor)
x1+3x2 < 45 (Machine)
x1 < 12 (Marketing)
x1, x2 > 0

Page 4 of 4