Name_ ID No Dept. Part I: Say True or False (1 point each) 1. The slope of a linear equations is constant throughout the line._ 2. When the slope m of a line is positive, the line slants upward from left to right. 3. Breakeven point is a point where the company has no loose but has profit. 4. The cost for a business to purchase the item plus the markup is the retailing price. 5. As quantity increases TR increases at a rate of P and average revenue remains constant in linear cost output relationships. Part II: Choose the best Answer (1 point each) A. 2y - x = 4 B. y = -2x + 7 1. Which of the following is not a linear equation? A. 5x-2y = 10 B. y = 3x 2. The equation of a line passing through the point (2,3) and perpendicular to y = -2x+ 11 C. y = 0.5x D. None C. 2x + 3xy = 7 D. None 3. Assume a city bus service charges Br. 2 plus 50 cents per kilo meter. Find the equation relating fare to number of kilo meters travelled. A. y = 2.5x + 2 C. y = 0.5x + 2. D. None B. y = 0.5x - 2 4. What are the dollar markup for merchandise that costs $60 and has a 35% markup? A. $81 C. $20 D. None B. $21 5. A merchandising company incurs selling expense of 10% and cost of goods sold is 60% of its retail and fixed cost birr 12,000, at what level of sales that the company break-even? A. 12,000 birr B. 52,,000birr Part III: Work out (Show all steps clearly and logically) (10 point) 1. A manufacturing Co. has a Total Fixed Cost of Br. 20,000 & a Unit Variable Cost of Br. 10. if the co. can sell what it produces at a price of Br. 20, a) Write the Revenue, cost & Profit functions C. 400,000birr D. 40,000 birr b) Find the breakeven point in terms of quantity and sales volume c) Show diagrammatically the Total Revenue, Total Cost, Total Profit, Fixed Cost and Variable Costs. d) Interpret the results
