Skip to content

CMA Final · Strategic Cost Management · Business Application of Maxima and Minima

A rectangular storage yard is to be fenced on all four sides using 160 metres of fencing. What is the maximum area that can be enclosed?

The maximum area is 1,600 square metres. With a perimeter of 160 metres, the two sides sum to 80 metres. Maximising x times (80 minus x) gives x equal to 40, a square yard of 40 by 40 metres.

  1. A1,200 sq m
  2. B1,600 sq mCorrect
  3. C2,400 sq m
  4. D3,200 sq m

Explanation

Let sides be x and 80 - x. Area = 80x - x². dA/dx = 80 - 2x = 0 gives x = 40, so the yard is a 40 m square. Area = 40 × 40 = 1,600 sq m. Second derivative is -2, confirming a maximum. A 30 × 50 layout gives only 1,500.

Did you get it right without looking?

One question tells you little. A timed set on Business Application of Maxima and Minima shows your real accuracy, how long you take and where you lose marks.

Practise Business Application of Maxima and MinimaFree diagnostic mock

More Business Application of Maxima and Minima questions