Sheet#6

Applications of Matrices and Determinants in Business

Problem-01: The sum of three numbers is 6. If we multiply the third number by 2 and add the
first number to the result, we get 7. By adding second and third numbers to three
times the first number, we get 12. Using matrices find the numbers.
Solution: Let the three numbers be x , y and z respectively. Then, given that
x + y + z = 6; x + 2z = 7 and 3x + y + z = 12
The above system of equations can be written in matrix form as:
⎡1 1 1⎤ ⎡ x ⎤ ⎡ 6⎤
⎢1 0 2⎥ ⎢ y ⎥ = ⎢ 7⎥ or, AX = B
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
⎢⎣3 1 1⎥⎦ ⎢⎣ z ⎥⎦ ⎢⎣12 ⎥⎦
⎡1 1 1⎤ ⎡ x ⎤ ⎡ 6 ⎤
where A = 1 0 2 , X = y and B = ⎢ 7 ⎥
⎢ ⎥ ⎢ ⎥
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
⎢⎣3 1 1⎥⎦ ⎢⎣z ⎥⎦ ⎢⎣12⎥⎦
1 1 1
Now, A = 1 0 2 = 1(0 − 2) − (1 − 6) + 1(1 − 0)
3 1 1
= −2 + 5 + 1 = 4 ≠ 0
So the above system of equations has a unique solution given by, X = A−1B . Let A ij be the co-
factor of a ij in A = a ij . Then.
A11 = −2, A12 = 5, A13 = 1, A 21 = 0, A 22 = −2, A 23 = 2,
A31 = 2, A32 = −1 and A33 = −1
⎡ − 2 0 2⎤ ⎡ − 2 0 2⎤
⎢ ⎥ 1 1 ⎢
∴ adj A = ⎢ 5 − 2 − 1⎥ . Thus A = −1
adj A = ⎢ 5 − 2 − 1⎥⎥
A 4
⎢⎣ 1 2 − 1 ⎥⎦ ⎢⎣ 1 2 − 1 ⎥⎦
⎡ − 2 0 2⎤ ⎡ 6⎤
1 ⎢
and X = A B or X = ⎢ 5 − 2 − 1⎥⎥ ⎢⎢ 7⎥⎥
−1

4
⎢⎣ 1 2 − 1 ⎥⎦ ⎢⎣12 ⎥⎦
360 Business Mathematics

⎡ x ⎤ ⎡− 12 + 0 + 24⎤ ⎡3 ⎤

⎢ y ⎥ = 1 ⎢ 30 − 14 − 12 ⎥ = ⎢1 ⎥
⎢ ⎥ 4 ⎢ ⎥ ⎢ ⎥
⎢⎣z ⎥⎦ ⎢⎣ 6 + 14 − 12 ⎥⎦ ⎢⎣2⎥⎦
Equating terms on both sides, we get x = 3, y = 1 and z = 2.
Hence, the three numbers are 3, 1 and 2 respectively.

Problem-02: A mixture is to be made of three foods A, B, C. The three A, B, C contain

nutrients P, Q, R as shown below:
Ounces per pound of nutrient
Food Nutrient P Nutrient Q Nutrient R
A 1 2 5
B 3 1 1
C 4 2 1
How to form a mixture which will have 8 ounces of P, 5 ounces of Q and 7
ounces of R?

Solution: Let x , y and z = pounds of food A, B and C, respectively be needed to form the
mixture.
The required relationships can be written as:
x + 3y + 4 z = 8
2 x + y + 2z = 5
5x + y + z = 7
The above system of simultaneous linear equations can be written in matrix form as:
⎡1 3 4⎤ ⎡ x ⎤ ⎡8 ⎤
⎢2 1 2⎥ ⎢ y ⎥ = ⎢5 ⎥ or , AX = B
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
⎢⎣5 1 1⎥⎦ ⎢⎣z ⎥⎦ ⎢⎣7⎥⎦
⎡1 3 4⎤ ⎡ x ⎤ ⎡8 ⎤
where A = 2 1 2 , X = y and B = ⎢5 ⎥
⎢ ⎥ ⎢ ⎥
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
⎢⎣5 1 1⎥⎦ ⎢⎣z ⎥⎦ ⎢⎣7⎥⎦
⎡1 3 4⎤
Now A = ⎢⎢2 1 2⎥⎥ = 1(1 − 2) − 3(2 − 10 ) + 4(2 − 5) = −1 + 24 − 12 = 11 ≠ 0
⎢⎣5 2 1⎥⎦
[ ]
Let A be the cofactor of a ij . Then,
A11 = −1, A12 = 8, A13 = −3
A21 = 1, A22 = − 19, A23 = 14,
A31 = 22, A32 = 6 and A33 = − 5
 ⎡− 1 1 2 ⎤
∴ adj A = ⎢⎢ 8 − 19 6 ⎥⎥
⎢⎣− 3 14 − 5⎥⎦
⎡− 1 1 2 ⎤
1 1 ⎢
Thus, A = adj A = ⎢ 8 − 19 6 ⎥⎥
−1

A 11
⎢⎣− 3 14 − 5⎥⎦
Thus, the solution of the system of equations in given by
⎡− 1 1 2 ⎤ ⎡8 ⎤
1 ⎢
X=A B= −1
⎢ 8 − 19 6 ⎥⎥ ⎢⎢5 ⎥⎥
11
⎢⎣− 3 14 − 5⎥⎦ ⎢⎣7 ⎥⎦
⎡ x ⎤ ⎡− 8 + 5 + 14 ⎤ ⎡11⎤ ⎡1⎤
⎢ ⎥ 1 ⎢ ⎥ 1 ⎢ ⎥ ⎢ ⎥
or, y =
⎢ ⎥ 11 ⎢ 64 − 95 + 42 ⎥ = 11 ⎢11⎥ = ⎢1⎥
⎢⎣z ⎥⎦ ⎢⎣− 24 + 70 − 35⎥⎦ ⎢⎣11⎥⎦ ⎢⎣1⎥⎦
Equating terms on both sides, we got X = 1, y = 1and z = 1.
Hence, the mixture is formed by mixing one proud of each of the foods A, B and C.

Problem-03: Food I has 3 units of vitamins A, 9 units of vitamin B and 12 units of vitamin C.
Food II has 6,9 and 15 units of vitamin A, B and C respectively. Food III has 9,0 and 9 units of
vitamin A, B and C respectively. The number of units of vitamin A, B and C required are 33, 27
and 60 respectively. Find the amount of three foods that will provide exactly these amounts. Use
matrix method.

Solution: Let x, y and z = units of food I, II and III to be purchased respectively.

The summary of data is :
Vitamin
A B C
I 3 9 12
Food
II 6 9 15
III 9 0 9
Requirement of vitamins 33 27 60
The system of equations can now be written as :
3x + 6 y + 9z = 33
9x + 9 y = 27
12 x + 15 y + 9z = 60
Now by applying Cramer’s rule, we can find the required values of x, y and z.
362 Business Mathematics

Problem-04: Memory Bakery Ltd. produces basic pastry mix types A, B and C. In the past, the
mix of ingredients has been as shown below:
Pastry mix Ingredients
Flour Fat Sugar
A 0 1 0
B 5.5 2.5 0.5
C 4.5 2 3

Due to changes in the consumer’s tastes, it has been decided to change the mixes using the
following amendment matrix:
Pastry mix Ingredients
Flour Fat Sugar
A 5 1 0
B -0.5 0.5 0.5
C 0.5 0 0
Obtain the matrix for the new mix.
Solution: The matrix of the new mix is obtained by the addition of the original mix matrix and
the amendment matrix.
Flour Fat Sugar
⎡5 1 1 ⎤ ⎡ 0 1 0 ⎤ A ⎡5 2 1⎤
⎢5.5 2.5
⎥ ⎢
0.5 + − 0.5 0.5
⎥
0.5 = B 5
⎢ 3 1
⎥
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
⎢⎣4.5 2 3 ⎥⎦ ⎢⎣ 0.5 0 0 ⎥⎦ C ⎢⎣5 2 3 ⎥⎦

Problem-05: There are two families A and B. There are 4 men, 6 women and 2 children in family
A and 2 men, 2 women and 4 children in family B. The recommended daily allowance for
calories is: Man: 2400, women: 1900, child: 1800 and for proteins is: Man: 55 gm, women: 45
gm and child: 33 gm.
Represent the above information by matrices. Using matrix multiplication, calculate the total
requirement of calories and proteins for each of the two families.

Solution: The members of the two families can be represented by the 2× 3 matrix.
M W C
A ⎡4 6 2⎤
D = ⎢
B ⎣2 2 4⎥⎦
and the recommended daily allowance of calories and proteins for each member can be
represented by 3× 2 matrix.
Calories proteins
 M ⎡2400 55⎤
E = W ⎢⎢1900 45 ⎥⎥
C ⎢⎣1800 33 ⎥⎦
The total requirement of calories and proteins for each of the two families is given by the matrix
multiplication:
Calories proteins
⎡2400 55⎤
⎡4 6 2⎤ ⎢ A ⎡24600 556⎤
DE = ⎢ 1900 45 ⎥⎥ = ⎢
⎣2 2 4⎥⎦ ⎢ B ⎣15800 332 ⎥⎦
⎢⎣1800 33 ⎥⎦
Hence, family A requires 24,600 calories and 556 gm proteins and family B requires 15,800
calories and 332 gm proteins.

Problem-06: Use matrix multiplication to divide Tk. 30,000 in two parts such that the total
annual interest at 9% on the first part and 11% on the second part amounts Tk. 3060.

Solution: Let the two parts be Tk. x and Tk. (30,000 − x ) respectively. Let A be the matrix
representing these two parts as:
Part I Part II
A = [x 30000 − x]
Let R be the matrix representing the annual interest rates on two parts, i.e.
Part I ⎡0.09 ⎤
R=
Part II ⎢⎣0.11 ⎥⎦
The total annual interest on the two parts is given by the matrix multiplication as:
⎡0.09⎤
AR = [x 30,000 − x ]⎢ ⎥ = Tk.3,060 (Given)
⎣0.11⎦
0.09x + 0.11(30,000 − x ) = 3060
9 11
x+ (30000 − x ) = 3060
100 100
9x + 33,0000 − 11x = 30,6000, i.e. x = 12,000 .
Hence, one part is Tk. 1,200 and second part is Tk .(30,000 − 12,000)Tk .18,000.

Problem-07: A trust fund has Tk. 50,000 that is to be invested into two types of bonds. The first
bond pays 5% interest per year and the second bond pays 6% interest per year. Using matrix
algebra, determine how to divide Tk. 50,000 among the two types of bonds so as to obtain an
annual interest of Tk. 2,780.

Solution: Let Tk. x and Tk. (50,000 − x ) be invested in the first and second type of bond,
respectively. The value of these bonds can be written in the form of a row matrix:
364 Business Mathematics

A = [x 50,000 − x ]1×2
The amounts received as interest annual from two bonds can be written in the form of a column
⎡0.05 ⎤
matrix: B = ⎢ ⎥
⎣0.06 ⎦ 2×1
Thus, total interest to be obtained annually from two bonds is given by
⎡0.05⎤
AB = [x 50,000 − x ]⎢ ⎥ = 0.05x + 0.06(50,000 − x ) = 3,000 − 0.01x
⎣0.06⎦
But given that the annual total interest is Tk. 2,780. Therefore
3,000 − 0.01x = 2780 or, x = (3000 − 2780)/ 0.01 = 220 ×100 = Tk.22,000
Hence, the required amount to be invested into two types of bonds as : Tk. 22,000 and Tk.
(50,000 − 22,000) = Tk.28,000 respectively.
Problem-08: A firm produces different pump units, each of which requires same components
shown below in a tabular form:
Pump Housing Impeller Bolts Couplings Inlets Aromoured hose
Type A 1 1 5 4 2 8 m.
Type B 1 1 7 3 2 4 m.
Type C 1 1 3 5 2 3 m.
The firm receives an order for 8 Type-A pump units, 4 Type-B units and 2 Type-C units. Using
the notion of Matrix Multiplication, obtain the matrix whose elements may represent the
quantities of each item required to make up the order.
Solution: The specifications of the different pump units with their components can be
represented by the following matrix:
⎛1 1 1 ⎞
⎜ ⎟
⎜1 1 1 ⎟
⎜ 5 ⎛ 8 ⎞
7 3 ⎟ ⎜ ⎟
⎜ ⎟ , ⎜ 4 ⎟
⎜ 4 3 5 ⎟ ⎜ 3 ⎟
⎜ 2 2 2 ⎟⎟ ⎝ ⎠3×1
⎜
⎜ 8 4 3 ⎟⎠ 6×3
⎝
Where each column represents the type of the pump and each row represents the different
components required. The firm has received order for8 8 type A. 4 type B, 2 type C units, This
can be represented by the matrix.
Therefore the matrix multiplication of these two matrices gives
 ⎛1 1 1 ⎞ ⎛1× 8 + 1× 4 + 1× 3 ⎞ ⎛15 ⎞
⎜ ⎟ ⎜ ⎟ ⎜ ⎟
⎜1 1 1 ⎟ ⎜1× 8 + 1× 4 + 1× 3 ⎟ ⎜15 ⎟
⎜ 5 ⎟ ⎛ 8 ⎞ ⎜ ⎟ ⎜ 77 ⎟
7 3 ⎜ ⎟ 5× 8 + 7 × 4 + 3× 3
⎜ ⎟ × ⎜ 4 ⎟ = ⎜ ⎟ = ⎜ ⎟
⎜ 4 3 5 ⎟ ⎜ 3 ⎟ ⎜ 4 × 8 + 3 × 4 + 5 × 3 ⎟ ⎜ 59 ⎟
⎜ 2 2 ⎟
2 ⎟ ⎝ ⎠ ⎜ ⎟ ⎜ 30 ⎟
⎜ 2 × 8 + 2 × 4 + 2 × 3 ⎟
3×1
⎜ ⎜ ⎟
⎜ 8 4 3 ⎟⎠ 6×3 ⎜ 8 × 8 + 4 × 4 + 3 × 3 ⎟ ⎜ ⎟
⎝ ⎝ ⎠ 6×1 ⎝ 89 ⎠
The first element of matrix (=15) gives the number of components for housing, the second (=15)
gives that of impeller and so on.

Problem-09: The following matrix gives the number of units of three products (P, Q and R) that
can be processed per hour on three machines (A, B and C):
⎛ A B C ⎞
P ⎜ ⎟
⎜10 12 15 ⎟
Q ⎜
13 11 20 ⎟
R ⎜⎜ ⎟
⎝16 18 14 ⎟⎠
Determine by using matrix algebra, how many units of each product con be produced, if the hours
available on machines A, B and C are 54, 46 and 48 respectively.
Solution:

⎡A B C ⎤
P ⎢ ⎥ ⎡54 ⎤ A ⎡540 + 552 + 720⎤ ⎡1812 ⎤ P
10 12 15 ⎥ ⎢46 ⎥ B = ⎢702 + 506 + 960⎥ = ⎢2168⎥ Q
Units of products = Q ⎢
⎢12 11 20 ⎥ ⎢ ⎥ ⎢ ⎥ ⎢ ⎥
R ⎢ ⎢ 48
⎥ ⎣ ⎦ ⎥ C ⎢
⎣864 + 828 + 672 ⎥ ⎢
⎦ ⎣ 2364 ⎥⎦ R
⎣16 18 14 ⎦
∴ 1812,2168 and 2368 units of product P, Q and R are produced respectively.

Problem-10: The following matrix gives the proportionate mix of constituents used for three
fertilizers : Constituent
A B C D
1 0.5 0 0.5 0
Fertilizer
2 0.2 0.3 0 0.5
3 0. 2 0.2 0.1 0.5
(i) If sales are 100 tins (of one kilogram) per week, 20% being fertilizer 130% being fertilizer 2,
and 50% fertilizer 3; how much of each constituent is used ?
(ii) If the cost of each constituent is 50 paisa, 60 paisa, 75 paisa, and 100 paisa per 100 grams,
respectively, how much does a one-kilogram tin of each fertilizer cost?
(iii) What is the total cost per week?
Express the calculations and answers in matrix form.
366 Business Mathematics

Solution: (i) The sales of fertilizers per week can be expressed as the following matrix: 1000(.02
0.3 0.5) = (200 300 500)
⎛ 0.5 0 0.5 0 ⎞
⎜ ⎟
Thus (200 300 500) ⎜ 0.2 0.3 0 0.5 ⎟ = (260 190 150 400)
⎜ 0.2 0.2 0.1 0.5 ⎟⎠
⎝
Requirements of constituents are;
A : 260, B : 190, C : 150, D : 400
(ii) Costs of each constituent are 50p, 60p, 75p, and 100p per 100 grams, i.e., 500p, 600p, 750p and
1000p per 1,000 grams (one kilogram of each constituent, respectively.
⎛ 500 ⎞
⎛ 0.5 0 0.5 0 ⎞ ⎜ ⎟ ⎛ 625 ⎞
⎜ ⎟ ⎜ 600 ⎟ ⎜ ⎟
Thus ⎜ 0.2 0.3 0 0.5 ⎟ × ⎜ ⎟ = ⎜ 780 ⎟
⎜ 0.2 750
⎝ 0.2 0.1 0.5 ⎟⎠ ⎜⎜ ⎟ ⎜⎝ 795 ⎟⎠
⎟
⎝ 1000 ⎠
Costs per 1-kg tin of fertilizer are:
1 : Tk. 6.25, 2 : Tk. 7.80 3 : Tk. 7.95.
(iii) The total cost of fertilizer if 1000 one-kilogram this are needed per week may be
calculated by either :
⎛ 625 ⎞
⎜ ⎟
(200 300 500) ⎜ 780 ⎟ = (7,56,500)
⎜ 795 ⎟
⎝ ⎠
⎛ 500 ⎞
⎜ ⎟
⎜ 600 ⎟
or by (260 190 150 400)
⎜ 750 ⎟ = (7,56,500)
⎜ ⎟
⎜1000 ⎟
⎝ ⎠
Hence, total cost per week is Tk. 7,565.

Problem-11: The total cost of manufacturing three types of motor car is given by the following
table:
 Labour Materials Sub-contracted
(hrs) (units) Work (Units)
Car A 40 100 50
Car B 80 150 80
Car C 100 250 100
Labour costs Tk. 20 per hour, units of materisls cost Tk. 5 each and units of sub-contracted work
cost Tk. 10 per unit. Find the total cost of manufacturing 3,000; 2,000 and 1,000 vehicles of type
A, B and C respectively.
Express the cost as a triple product of a three element row matrix , 3x3 matrix and a three element
column matrix and perform the multiplication according to the same rules you used for 2 × 2
matrices.

Solution: Let matrix P represent labour hours, material cost and cost of sub-contracted work for
three types of cars A, B, C repectively.
⎡ 40 100 50 ⎤
P = ⎢ 80 150 80 ⎥
⎢ ⎥
⎢⎣100 250 100⎥⎦
Further let matrix Q represent labour cost per unit, material cost and cost of sub-contracted work.
⎡20⎤
Q = ⎢ 5 ⎥
⎢ ⎥
⎢⎣10 ⎥⎦
The cost of each car A, B, C is now given by the column matrix
⎡ 40 100 50 ⎤ ⎡20 ⎤ ⎡1800 ⎤
PQ ⎢ 80 150 80 ⎥ ⎢ 5 ⎥ = ⎢3150 ⎥
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
⎢⎣100 250 100⎥⎦ ⎢⎣10 ⎥⎦ ⎢⎣4250⎥⎦
Let the number of cars A, B, C to be manufactured in that order be represented by the row matrix.
R=[3000 2000 1000]
Hence the total cost of manufacturing three cars A, B and C is given by the matrix.
⎛ 1800 ⎞
⎜ ⎟
RPQ= (3000 2000 1000) ⎜ 3150 ⎟ = [1,59,50,000]
⎜ 4250 ⎟
⎝ ⎠

Problem-12: A manufacturer produces three products: P, Q and R which he sells in two markets.
Annual sales volumes are indicated as follows:
Markets Products
P Q R
368 Business Mathematics

I 10,000 2,000 18,000

II 6,000 20,000 8,000
If unit sale prices of P, Q and R are Tk. 2.50, 1.25 and 1.50 respectively find the total revenue in
each market will the help of Matrix Algebra.
If the unit costs of the above 3 commodities are Tk. 1.80, 1.20 and 0.80 respectively, find his
gross profits.

Solution: Total revenue in each market is obtained from the matrix product:
⎡10000 6000 ⎤
[2.50 1.25 1.50]× ⎢⎢2000 20000⎥⎥ = [54500 52000]
⎢⎣18000 8000 ⎥⎦
⎡10000 6000 ⎤
Total cost = [1.80 1.20 0.80]× ⎢⎢2000 20000⎥⎥ = [34800 41200]
⎢⎣18000 8000 ⎥⎦
Profit from market A = 54500 − 34800 = 19700
Profit from market B = 52000 − 41200 = 10800
Problem-13: A manufacturer produces three products P,Q, and R, which he sells in two markets
A and B. Annual sale volumes are indicated below:
Market Product
P Q R
A 10,000 2,000 18,000
B 6,000 20,000 8,000
If unit sale prices of P, Q, R are Tk. 2.50, Tk. 1.25 and Tk. 1.50, respectively, find the total
revenue in each market with the help of matrix algebra.

Problem-14: A firm produces three products A, B and C which it sells in two markets. Annual
sales in units are given below:
Market Units sold
A B C
I 8,000 4,000 16,000
II 7,000 18,000 9,000
If the price per unit of A, B and C is Tk. 2.50, Tk. 1.25 and Tk. 1.50 respectively and the
costs per unit are Tk. 1.70, Tk. 1.20 and Tk. 0.80 respectively, find the total profit in each
market by using matrix algebra.