UNIVERSITY OF BOTSWANA CENTRE FOR CONTINUING EDUCATION DIPLOMA IN ACCOUNTING AND BUSINESS STUDIES SEMESTER I CA TEST I 2012/2013

COURSE NO. DAB 311

DURATION: 2 Hrs

DATE: 03 SEPTEMBER 2012

TITLE OF PAPER: QUANTITATIVE METHODS FOR BUSINESS SUBJECT: ACCOUNTING TITLE OF EXAMINATION: DABS YEAR 3 MARKS: 40

INSTRUCTIONS: 1. This paper contains TWO (2) questions carrying equal marks. 2. Attempt ALL questions. 3. Number your answers correctly and clearly. 4. Start each question on a new page. 5. Show your workings and calculations. 6. Neatness is a must, in quantitative analysis.

DO NOT OPEN THIS PAPER UNTIL YOU ARE TO DO SO BY THE INVIGILATOR.

NO. OF PAGES: 3 (Including this one) DAB-311: QUANTITATIVE METHODS Question 1 The Electrocomp Corporation manufactures two electrical products: air conditioners and large fans. The assembly process for each is similar in that both require a certain amount of wiring and drilling. Each air conditioner takes 3 hours of wiring and 2 hours of drilling. Each fan must go through 2 hours of wiring and 1 hour of drilling. During the next production period, 240 hours of wiring time are available and up to 140 hours of drilling time may be used. Each air conditioner sold yields a profit of P250. Each fan assembled may be sold for a P150 profit. Electrocomps management realises that it forgot to include two critical constraints. In particular, management decides that to insure an adequate supply of air conditioners for a contract, at least 20 air conditioners should be manufactured. Because Electrocomp incurred an oversupply of fans in the preceding period, management also insists that no more than 75 fans be produced during production period. Required: (a) Formulate a linear programming problem for this problem. (b) Present a graphical solution of this problem. (5 marks) (10 marks)

(c) Find the best combination of air conditioners and fans that yields the highest profit. (5 marks)

Question 2 (a) A paper manufacturer having two mills must supply three printing plants with newsprint each week. Mill A produces 350 tonnes per week and Mill B produces 550 tonnes per week. Plant 1 requires exactly 300 tonnes per week, Plant 2 requires exactly 400 tonnes per week and Plant 3 requires exactly 200 tonnes per week. The shipping costs, in Pula per tonne, are shown in the following table: TO FROM Mill A Mill B Required: (i) (ii) (iii) Draw the transportation network. (3 marks) Plant 1 17 18 Plant 2 22 16 Plant 3 15 12

Find the initial solution and total cost using the northwest corner method. (3 marks) Find the final optimal solution based on your northwest corner method initial solution showing every step. (6 marks) Four lecturers are assigned to teach four courses. The time (hours) they need to complete the course is shown below. . LECTURER Judy Curtis Brown Dread (i) (ii) 1 14 16 18 20 2 13 15 14 13 COURSE 3 17 16 20 15 4 14 15 17 18 (5 marks) (2 marks)

(b)

Who should teach which course? What is the total time required to complete the courses?

(iii)

What is the total cost of teaching if the hourly rate for a lecturer is P264.14? (1 mark) (Total 20 marks)