DPB 20053 1

BUSINESS MATHEMATICS

CHAPTER 1 : EQUATIONS

Fakilah Anurul binti Mohd Azli Navamohan

Commerce Department
Politeknik NIlai
LEARNING OBJECTIVES

1. Able to use the concepts and formulation of equations

2. Able to apply the concepts and formulation of specific equations to solve

business mathematics problems

3. Able to ascertain relationship between

i. Total cost
ii. Revenue
iii. Profit
iv. Fixed cost
v. Variable cost

4. Able to calculate the variable cost, sales price and profit using
equations
2
TYPES OF EQUATIONS

1 2 3
LINEAR QUADRATIC SIMULTANEOUS
EQUATIONS EQUATIONS EQUATIONS

3
 TEST YOUR KNOWLEDGE

Identify the types of equation below:

5 = 6𝑥 + 14
3𝑥 + 5 = 6
𝑥 2 + 3𝑥 = 9
5𝑦 + 1 = 14𝑦 − 3
1
𝑥 + 5 = 10
7
3𝑥 2 + 9𝑥 − 27 = 0

4
 LINEAR EQUATIONS
(1st DEGREE EQUATION)

𝟐𝒙 + 𝟏𝟔 = 𝟓𝒙 − 𝟐

• One variable involved

• Variable with no power
• The solution to the equation is to find the value for the
variable “x”

5
Method for solving 1st degree equation

Simplify any
Clear parentheses
fraction

Isolate the variable

• - move the variable (x) to the left
side and move the number to the
right side

6
Example
Solve the equation below:

3𝑥 − 2 = 10

Solution: Isolate the variable

3𝑥 − 2 = 10
3𝑥 = 10 + 2
3𝑥 = 12
12
𝑥=
3
𝒙=𝟒

FAM 7
Example
Solve the following equation

2𝑥 − 5 𝑥 − 2 = 6 − 8𝑥 + 1
Clear parenthesis
Solution:
2𝑥 − 5 𝑥 − 2 = 6 − 8𝑥 + 1
2𝑥 − 5𝑥 + 10 = 6 − 8𝑥 + 1 Isolate the variable

2𝑥 − 5𝑥 + 8𝑥 = 6 + 1 − 10
5𝑥 = −3
−3
𝑥=
5

8
Example
Find the value of x in the following equation

2 5𝑥
=
4 10 − 2𝑥
Solution:
Simplify any fractions
2 5𝑥
=
4 10 − 2𝑥
2 10 − 2𝑥 = 4(5𝑥) Clear parenthesis

20 − 4𝑥 = 20𝑥 Isolate the variable

−4𝑥 − 20𝑥 = −20
−24𝑥 = −20
−20
𝑥=
−24
5
𝑥=
6 9
 EXERCISE

a. 4 2 + 5𝑥 = 10 𝑓. 5𝑥 = 60
𝑥
𝑏. 𝑥 − 2 = 3(𝑥 + 1) 𝑔. = 5
7
6 2
c. = h. 2𝑥 + 7 = 19
2𝑥−1 𝑥−3

4𝑥 − 3 6 − 2𝑥
𝑑. 2 𝑝 + 4 = 7𝑝 + 2 𝑖. =
5 2
3
ℎ. 𝑥 − 6 = −18 j. 5𝑥 + 12 = 11 𝑥
5
10
 QUADRATIC EQUATIONS
(2nd DEGREE OF EQUATION)
• The general form of quadratic equation is

2
𝑎𝑥 + 𝑏𝑥 + 𝑐 = 0
• There are 2 values for the variable for this type of equation

• There are three ways to solve the quadratic equation

i. Factoring method
ii. Quadratic formula method
iii. Calculator method

11
 FACTORING METHOD

To get b, sum up the

combination that you
𝒙𝟐 + 𝒃𝒙 + 𝒄 = 𝟎
get at c.

To get c, you should get (a + b) (a x b)

the right combination of
axb=c
𝒙+𝒂 𝒙+𝒃 =𝟎

Split the factoring to get the answer of the variable

𝑥+𝑎 =0 𝑥+𝑏 =0
𝑥 =0 −𝑎 𝑥 =0 −𝑏
𝑥 = −𝑎 𝑥 = −𝑏

12
 Example
To get b, sum up the
combination that you
get at c. 𝒙𝟐 + 𝟓𝒙 + 𝟔 = 𝟎
3+2=5
a=3
To get c, you should get the (a + b) (a x b) b=2
right combination of
3x2=6
𝒙+𝟑 𝒙+𝟐 =𝟎

Split the factoring to get the answer of the variable

𝑥+3=0 𝑥+2=0
𝑥 =0 −3 𝑥 =0 −2
𝑥 = −3 𝑥 = −2

13
 EXERCISE

i. 𝑥 2 − 14𝑥 + 49 = 0

ii. 𝑥 2 + 12𝑥 + 36 = 0

iii. 𝑥 2 − 8𝑥 + 7 = 0

iv. 𝑥 2 − 3𝑥 − 4 = 0

v. 𝑥 2 + 6𝑥 + 9 = 0

14
 QUADRATIC FORMULA METHOD

• Quadratic formula will be used when quadratic expression

can’t be factorized
• Quadratic formula :

−𝑏 ± 𝑏 2 − 4𝑎𝑐
𝑥=
2𝑎

15
Example
Question : Solve the quadratic equation below

𝒙𝟐 + 𝟓𝒙 + 𝟔 = 𝟎
Steps:
a b c
• Identify the value of a, b and c
• Substitute the value into the formula and split

𝑎 = 1 , 𝑏 = +5, 𝑐 = +6

−𝑏 + 𝑏2 − 4𝑎𝑐 and −𝑏 − 𝑏2 − 4𝑎𝑐

𝑥= 𝑥=
2𝑎 2𝑎
−5 + 52 − 4(1)(6) −5 − 52 − 4(1)(6)
𝑥= 𝑥=
2(1) 2(1)
−5 + 25 − 24 −5 − 25 − 24
𝑥= 𝑥=
2 2

𝒙 = −𝟐 𝒙 = −𝟑
16
 EXERCISE

i 2𝑥 2 + 𝑥 − 3 = 0

ii −2𝑥 2 + 11𝑥 + 21 = 0

iii 2𝑥 2 − 4𝑥 − 2 = 0

iv 4𝑥 2 − 7𝑥 − 12 = 0

v 6𝑥 2 + 11𝑥 − 35 = 0

17
 SIMULTANEOUS EQUATION

• Solving TWO EQUATIONS with two unknowns

1
𝟐𝒙 + 𝟐𝒚 = 𝟐
𝟐𝒙 + 𝒚 = 𝟒 2

• Solving THREE EQUATIONS with three unknowns

𝟐𝒙 + 𝟐𝒚 + 𝒛 = 𝟏𝟎 1
𝟐𝒙 + 𝒚 + 𝟐𝒛 = 𝟏𝟓 2
𝒙 + 𝟐𝒚 + 𝒛 = 𝟏𝟒
3

18
 TWO EQUATIONS
2𝑥 + 2𝑦 = 6 1

2𝑥 + 𝑦 = 4 2

Solution :

1 - 2 : 2𝑥 + 2𝑦 = 6
2𝑥 + 𝑦 = 4
𝒚 = 𝟐
Thus,
Substitute y = 2 into 2 𝒙 = 𝟏 𝒂𝒏𝒅 𝒚 = 𝟐

2𝑥 + 2 = 4
2𝑥 = 4 – 2
2𝑥 = 2
2
𝑥=
2
= 𝟏
19
 EXERCISE

i. 2𝑥 + 2𝑦 – 3 = 3
5𝑥 – 2𝑦 + 9 = 10

ii. 17𝑥 – 5𝑦 = 34
20𝑥 + 20𝑦 = 40

iii. 2𝑦 + 𝑥 = 8
1 + 𝑦 = 2𝑥

20
Example
Salleh is planning to invest RM30 000 in two projects, x and y. The two projects
will gain an annual income of RM1750., Project x will payback 5% per year while
project y will payback 6% per year due to a higher level of risk involved. How
much money should be invested for each project?

1
The investment : 𝑥 + 𝑦 = 30 000
2
The gain : 0.05𝑥 + 0.06𝑦 = 1 750
1 × 0.05 ∶ 0.05𝑥 + 0.05𝑦 = 1 500 3

2 3 : 0.01𝑦 = 250
250
y=
0.01

= 𝟐𝟓 𝟎𝟎𝟎

21
Substitute 𝑦 = 25000 into equation 1

𝑥 + 𝑦 = 30 000
𝑥 + 25 000 = 30 000
𝑥 = 30 000 – 25 000
= 𝟓 𝟎𝟎𝟎

Thus, Salleh should invest :

RM 5 000 in project x ,
RM25 000 in project y

22
 EXERCISE

En. Fuad having a cash of RM20 000. he plans to invest his

money in two types of shares, Bank Rakyat and Koperasi
Niaga. After one year, he will gain an annual income of
RM2 200 where Bank Rakyat shares will payback 15% per year
while Koperasi Niaga share will payback 10% per year
respectively. How much provisions does he need for each
shares?

23
 EXERCISE

AZ company manufactures two different products. In the

coming week, 225 hours of labour are available for
manufacturing the two products. Since both products
generate a good profit, management is interested in using all
225 hours. Each unit of product A will require 3 hours of
labour and each unit of product B will require 2.5 hours. Each
unit of product A will cost RM6.00 and each unit of product B
will cost RM4.00. The company insists that the total costs for
the two products must be RM420. Indicate the number of
products A and B which need to be produced

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 THREE EQUATION

1
2𝑥 + 𝑦 – 𝑧 = 3 Choose any two
𝑥 − 2𝑦 – 𝑧 = −5 2 of the equation

5𝑥 + 𝑦 + 2𝑧 = 6 3

Solution :
Eliminate z from the equation 1 and 2 by subtraction

1 2𝑥 + 𝑦 − 𝑧 = 3
2 𝑥 − 2𝑦 − 𝑧 = −5
1 - 2 : 𝒙 + 𝟑𝒚 = 𝟖 4

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Eliminate z from the equation 1 and 3 by addition.

1 x 2 : 4𝑥 + 2𝑦 − 2𝑧 = 6 5
3 : 5𝑥 + 𝑦 + 2𝑧 = 6 6

𝟗𝒙 + 𝟑𝒚 = 𝟏𝟐

Solve equation 4 and 6 for x and y by subtraction.

:
4 𝑥 +: 3𝑦 = 8
6 9𝑥 + 3𝑦 = 12
6 - 4 : 8𝑥 = 4
4
𝑥=
8
1
𝑥=
2

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 1
Subtitute x = 2 into equation 4 to get value of y.

1 :
4 + 3𝑦 = 8
2 1
3𝑦 = 8 −
2
15
=
2

𝑦 = 15
2
3

𝑦 = 5
2

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 1 5
To solve z, substitute x= and y= into equation 1
2 2

1 5
1 : 2( ) + − 𝑧 = 3
2 2
5
1+ −𝑧 =3
2
7
−𝑧 = 3 −
2
1
𝑧=
2

1
Thus, x =
2
5
y=
2
1
𝑧=
2
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 EXERCISE

i 𝑥 +𝑦+𝑧 =6
𝑥 −𝑦+𝑧=2
𝑥 + 2𝑦 − 𝑧 = 2

ii 𝑥 + 2𝑦 + 𝑧 = 4
2𝑥 − 3𝑦 − 𝑧 = 4
𝑥 − 2𝑦 − 2𝑧 = 3

iii 2𝑥 + 𝑦 − 2𝑧 = 4
𝑥 +𝑦 =1
3𝑥 + 2𝑦 − 𝑧 = 2

29
USE OF EQUATIONS IN BUSINESS

i. Fixed Cost (FC)

• Cost that does not change with an increase or decrease in the amount of
goods or services produced.
• Expenses that have to be paid by a company, independent of any business
activity.

ii. Variable Cost (VC)

• Corporate expenses that varies with production output.
• Cost that vary depending on a company’s production volume. Arise as
production increases and fall as production decreases.

iii. Total cost (TC)

• Total economic cost
• Fixed Cost + Variable Cost
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Total Revenue = Unit Price x Quantity

TR = p x Q
Total Variable Cost = Variable Cost per Unit x Quantity
TVC = VC x Q
Total Cost = Fixed cost + Total Variable Cost

TC = FC+ TVC
Profit = Total Revenue – Total Cost

P = TR – TC
𝐹𝐶+𝑃
Target Quantity , Q =
𝑝−𝑉𝐶
31
Example
Anne Private Limited produces clothing products. The total variable cost per
unit is RM2.10. If the fixed cost is RM85,000 and the price is RM3.00 per unit,
find the profit of the company if the company wishes to produce 150, 000
unit

Solution:
Profit = Total Revenue – Total Cost
P = pQ – (FC + VC.Q)
= 3(150,000) – (85,000 + 2.1(150,000))
= 450,000 – 85,000 – 315,000
= RM 50, 000

32
 EXERCISE
1. Xyz Enterprise had launched a new product. The variable cost for 100
units of the product is RM1 350 and the fixed costs of the product is
RM20 000.In the first production, they produced 5 000 units with a
selling price of RM20.00 per unit. Using the information given, find :
a) The profit gained by XYZ Enterprise if all of the new products are
sold.
b) The total units to be sold in order to earn a profit of RM20000.
c) The Total revenue if 6000 units are sold
d) The profit gained for total units sold in “c” with the fixed cost
reduced by 10%

33
 EXERCISE

2. Company XYZ is in the process of diversifying the business by introducing a

new product. The production and finance departments had provided the data
below :
Building =RM 15 000
Interests =RM10 000
Copyrights =RM1 500
Other Overhead costs =RM15 000
Raw materials for 5000 units =RM17 500
Other variable costs =RM1.00 per units
Price per unit =RM10.50

Using the information given, find :

a. The profit if 5500 units is sold
b. The profit if 10000 units is sold

34
 EXERCISE

3. Aida Harith Enterprise produced a baby product with variable cost of

RM2.50 per unit. The fixed cost is RM80000 and 50 units were sold at
RM375.
i. How much profit will be gained when 30000 units were sold
ii. Calculate the profit gained if the fixed cost reduced by 20%

35
 Past Year Questions

1. Identify the value of 𝑥:

5x−2 3.5x+1
i. 2
=
3
[3.5 marks]
ii. 2 x + 5 = 16
[2.5 marks]
iii. 2y − 2 − 5y = 10 − 2(y − 4)
[4 marks]

36
 Past Year Questions

2. Interpret the following question into quadratic equation using the

factoring method

𝑥 2 − 4 = −3𝑥

[5 marks]
3. Detail the value of all variables for the third-degree equation below:

2𝑝 + 6𝑞 + 3𝑟 = 10
6𝑝 + 6𝑞 + 5𝑟 = 50
7𝑝 + 12𝑞 + 7𝑟 = 60
[6 marks]

37
 Past Year Questions

4. Detail the value of the variables for the second-degree equation

below:
3𝑥 + 4𝑦 = 7
3𝑥 − 4𝑦 = −1

[4 marks]

38
THE END, THANK YOU

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