Instructions / Instruksies

Answer all questions and show all required details in your answers.
Do not write on the left side of the margin line.
Use only blue and black ink for writing answers.
Answers written in pencil shall not be marked.

Question 1 / Vraag 1

1) You are the manager of a small business that produces handmade crafts. The fixed weekly
costs (rent, utilities, etc.) are R10 000, and the cost to produce each item is R200. You sell
each item for R500. [4]

(i) Write a cost function C(x) to represent the total weekly cost if x items are produced,
(ii) Write a revenue function R(x) to represent the total weekly revenue if x items are sold,
(iii) Write a profit function P (x) to represent the weekly profit,
(iv) If you sell 100 items in a week, what will be your profit?

1. Cost Function:

C(x) = Fixed Costs + (Variable Cost per Unit × x) = 10, 000 + 200x✓

2. Revenue Function:

R(x) = Selling Price per Unit × x = 500x✓

3. Profit Function:

P (x) = R(x) − C(x) = 500x − (10, 000 + 200x) = 300x − 10, 000✓

4. P(100):
P (100) = 300(100) − 10, 000 = 30, 000 − 10, 000 = R20, 000✓

Question 2 / Vraag 2

2) You are the production manager at a factory that produces two models of electronic devices:
Model X and Model Y. Model X requires 3 units of material A and 2 units of material B, while
Model Y requires 1 unit of material A and 4 units of material B. The factory receives 60 units
of material A and 80 units of material B daily. [4]

(i) Write a system of equations to represent the daily production of Model X and Model Y,
(ii) Solve the system using Gaussian elimination.

1. System of Equations: Let x = number of Model X units, and y = number of Model Y

units. 
3x + y = 60 (Material A)
2x + 4y = 80 (Material B)
✓

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 2. Gaussian Elimination: Augmented matrix:

3 1 | 60
" #

2 4 | 80

1 R2 = R2 − 32 R1 :
3 1 | 60
" #
✓
0 10
3
| 40
(i) Solve for: y:
10
y = 40 =⇒ y = 12✓
3
(ii) Solve for: x:
3x + 12 = 60 =⇒ x = 16
x = 16, y = 12.✓

Question 3 / Vraag 3

3) You are working with a data analyst who provides you with the following matrices: [7]

2 3 1 0 5
" # " # " #
h i
A= , B= , C= , D= 3 4
4 1 2 4 6

(i) Identify the dimensions of each matrix.

(ii) Calculate A + B and interpret the result.
(iii) Calculate AB and interpret the result.
(iv) Calculate BA and explain why it is different from AB.
(v) Calculate CD and interpret the result.
(vi) Calculate DC and explain why it is different from CD.

(i) Dimensions:
– A: 2 × 2✓(halfmark for each correct dimension)
– B: 2 × 2✓
– C: 2 × 1✓
– D: 1 × 2✓
(ii) A + B:
2+1 3+0 3 3
" # " #
A+B = =
4+2 1+4 6 5
This represents the element-wise sum of matrices A and B.✓
(iii) AB:
2(1) + 3(2) 2(0) + 3(4) 8 12
" # " #
AB = =
4(1) + 1(2) 4(0) + 1(4) 6 4
This represents the product of matrices A and B.✓

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 (iv) BA:
1(2) + 0(4) 1(3) + 0(1) 2 3
" # " #
BA = =
2(2) + 4(4) 2(3) + 4(1) 20 10
BA ̸= AB because matrix multiplication is not commutative.✓
(v) CD:
5 h 15 20
" # " #
i
CD = 3 4 =
6 18 24
This represents the outer product of C and D.✓
(vi) DC:
5
" #
h i
DC = 3 4 = 3(5) + 4(6) = 15 + 24 = 39
6
This represents the dot product of D and C, which is a scalar. DC ̸= CD because the
dimensions are different.✓

Question 4 / Vraag 4
A company operates two factories to produce laptops: [6]

• Factory 1 (x days): Produces 30 Model A, 20 Model B, and 40 Model C daily.

• Factory 2 (y days): Produces 50 Model A, 30 Model B, and 10 Model C daily.

The company must meet minimum demands:

• 1500 Model A,

• 1200 Model B,

• 800 Model C.

• Operating costs are R20, 000/day for Factory 1 and R15, 000/day for Factory 2.

(i) Set up the system of inequalities.

(ii) Draw the feasible region.

(iii) Write the cost function.

(iv) Determine the optimal operating days to minimise cost.

(v) Find the minimum cost.

(i) The constraints for minimum production requirements are:

30x + 50y ≥ 1500 (Model A)




20x + 30y ≥ 1200 (Model B)


✓




40x + 10y ≥ 800 (Model C)
x ≥ 0, y ≥ 0 (Non-negativity)



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 (ii) Feasible Region: The feasible region is determined by the intersection of the inequalities:

Intersection of A and B: (30x + 50y = 1500) ∩ (20x + 30y = 1200) ⇒ (x, y) = (20, 20)
Intersection of A and C: (30x + 50y = 1500) ∩ (40x + 10y = 800) ⇒ (x, y) = (40, 0) ✓
Intersection of B and C: (20x + 30y = 1200) ∩ (40x + 10y = 800) ⇒ (x, y) = (0, 40)

(iii) The total cost C to minimise is:

C = 20,000x + 15,000y✓

(0, 40) : C = 20,000(0) + 15,000(40) = R600,000

(20, 20) : C = 20,000(20) + 15,000(20) = R700,000
(40, 0) : C = 20,000(40) + 15,000(0) = R800,000✓

(iv) The minimum cost occurs at (0, 40).✓

(v) Minimum Cost

R600,000 ✓

Question 5 / Vraag 5
A company has: [5]

• Production function: q(m) = 40m − m2 where m = workers

• Revenue function: R(q) = 50q

(i) Find (R ◦ q)(m)

(R ◦ q)(m) = R(q(m))
= 50(40m − m2 )
= 2000m − 50m2 ✓

(ii) Explain what this composite function represents

The composite function (R ◦ q)(m) represents the total revenue as a direct function of the
number of workers m, combining both the production output and revenue generation pro-
cesses.✓

(iii) Calculate revenue with 15 workers

(R ◦ q)(15) = 2000(15) − 50(15)2

= 30, 000 − 11, 250
= R18,750 ✓

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(iv) Find worker count for maximum revenue
The function (R ◦ q)(m) = −50m2 + 2000m is quadratic. Maximum at:

b
m=−
2a
2000
=−
2(−50)
= 20 workers ✓

(R ◦ q)(20) = 2000(20) − 50(20)2

= 40, 000 − 20, 000
= R20,000 (Maximum revenue)✓

A company manufactures Smartphones (x) and Tablets (y) with the following constraints: [3]

• Labour: 2x + 3y ≤ 200 hours.

• Storage: x + 2y ≤ 150 units.

• Revenue: R(x, y) = 50x + 70y − 0.1x2 − 0.2y 2 .

• Cost: 
1000 + 20x + 30y if x + y ≤ 50
C(x, y) = 
1000 + 15x + 25y if x + y > 50

0 if P ≤ 10,000



T (P ) = 0.15(P − 10,000) if 10,000 < P ≤ 50,000

0.25(P − 50,000) + 6,000 if P > 50,000



(i) Formulate the profit function P (x, y) and compute P (30, 25).

(ii) Derive the tax function T (P ) and calculate T (60,000).

(iii) Optimise (x, y) to maximise profit under the constraints.

(i) Profit Function

P (x, y) = R(x, y) − C(x, y)
For x + y > 50:

P (x, y) = (50x + 70y − 0.1x2 − 0.2y 2 ) − (1000 + 15x + 25y) = −0.1x2 − 0.2y 2 + 35x + 45y − 1000

At (30, 25):

P (30, 25) = −0.1(30)2 − 0.2(25)2 + 35(30) + 45(25) − 1000 = R960✓

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 (ii) Tax Calculation For P = 60,000:

T (60,000) = 0.25(60,000 − 50,000) + 6,000 = R8,500✓

(iii) Optimisation The optimal production mix is:

(x, y) = (40, 35) with P (40, 35) = R2,450✓

A government imposes a specific tax of R3 per unit on producers of solar panels. The original
market conditions are: [6]

• Demand function: Qd = 120 − 8P

• Supply function: Qs = 4P − 24

(i) Pre-tax equilibrium

120 − 8P = 4P − 24
144 = 12P
P0 = R12
Q0 = 120 − 8(12) = 24 units ✓

(ii) New supply function

Producers receive (P − 3) per unit after tax:

Qnew
s = 4(P − 3) − 24
= 4P − 36 ✓

(iii) Post-tax equilibrium

120 − 8P = 4P − 36
156 = 12P
P1 = R13 (Consumer price)✓
Pproducer = 13 − 3 = R10
Q1 = 120 − 8(13) = 16 units ✓

(iv) Tax incidence

Consumer burden = 13 − 12 = R1
Producer burden = 12 − 10 = R2✓
Total tax = R3
% borne by consumers = 33.3%
% borne by producers = 66.6% ✓

TOTAL / TOTAAL: 35
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