Question 1: Problem solving (14 Marks)

A handicraft products trader is selling leather cases for $40 the unit. To run his business, he needs to pay $1200 for rent, $500 salaries, and another $300 for renewing his business license. The handicraft trader has the choice to import his products from three different countries, and it will cost him $20 per unit if he imports the product from China, $25 per unit if he imports the product from India, and $15 per unit if he imports the product from Indonesia.

Questions:

1. Compute the traders profit if he sells 80 units imported from China and 60 units imported from India. (2 Marks)
2. If the trader imports only from China, then compute the traders profits from importing and selling 50 units then from importing and selling 150 units. Explain the obtained results. (3 Marks)
3. What is the trader total cost from importing 100 units from Indonesia and 200 units from India ? (2 Marks)
4. If the trader decides to import only from China, how many units he should import and sell to reach a profit of $3000? (2 Marks)
5. If the trader wants to reach a positive profit by selling only 90, 110, then 200 units, from which country (or countries) he should import his products for each of the three number of units. (2 Marks)
6. The trader decides to import only from India. If the trader has the privilege to return the unsold units to India and obtain a refund of $20 per unit returned, then compute his profit from importing 250 units but selling only 200 units. (3 Marks)