Business Application

of
Mathematics

Prof. Iqbal Shoukat

E-mail: [email protected]
Whatsapp no. 03009476991
 Main Learning Outcomes
Students can solve systems of linear equations by substitution.
Students are able to determine if a system of linear equations has no
solution, one solution, or infinitely many solutions.
Students are able to determine which method is best to solve a
system of linear equations.
Calculate the rate of change or slope of a linear function given
information as sets of ordered pairs, a table, or a graph.
Apply the slope formula. Give the point slope and standard forms of
linear equations and define their parts.
Convert point slope and standard form equations into one another.
Apply the appropriate linear equation formula to solve problems.

Prof. Iqbal Shoukat

E-mail: [email protected]
Whatsapp no. 03009476991
 What is a Linear equation
In mathematics, a linear equation is an equation that may be
put in the form where are the variables, and are the
coefficients, which are often real numbers.
or The equation where the highest power of the variable
will be one. The coefficients may be considered as
parameters of the equation, and may be arbitrary
expressions, provided they do not contain any of the
variables.

Prof. Iqbal Shoukat

E-mail: [email protected]
Whatsapp no. 03009476991
 Linear equation
Y = a + bX
Y = 15 + 5X
Y = 15 + 5(1) = 20
Y = 15 + 5(2) = 25
Y = 15 + 5(3) = 30

Here
a = 15 = Constant=intercept=Autonomus factor
b = 3 = Coefficient = Rate of change = Derivative = Marginal value

it means everyone unit increase the value of X the value of

Y will increase by 3 times
Prof. Iqbal Shoukat
E-mail: [email protected]
Whatsapp no. 03009476991
 Application of Linear Equations

Mr. Kamran is producing the Electric motors, the total fixed cost
incurred by him is Rs.50000 and the total variable cost per unit is
Rs. 560.

Then find the

i- Expression of TC in terms of Q

ii- If he produces the 100 motors then what would be his total
cost?

iii- Write down the business meaning of regression coefficient

iv- Show the information with the help of a diagram. E-mail:

Prof. Iqbal Shoukat
[email protected]
Whatsapp no. 03009476991
Business Application of Linear Equations

Cost Analysis
Y = a + bX
Total Cost = Total Fixed Cost + Total Variable Cost
TC = TFC + TVC

Solution

i- Expression of TC in terms of Q

Y = a + bX

TC = a + bQ
TC = 50,000 + 560Q
TC = 50,000 + 560(0) = 50,000
Prof. Iqbal Shoukat
E-mail: [email protected]
Whatsapp no. 03009476991
 Business Application of Linear Equations
Cost Analysis
ii- If he produces the 100 motors then what
would be his total cost?
TC = 50,000 + 560Q
TC = 50,000 + 560(100)
TC = 50,000 + 56,000
TC = 106,000

iii- Write down the business

meaning of regression coefficient
it shows everyone unit increase in
output level the TC of Mr.
Kamran will increase by Rs. 560
Prof. Iqbal Shoukat
E-mail: [email protected]
Whatsapp no. 03009476991
 Business Application of Linear Equation

Student Activity:

Mr. Faisal started a new business of Botique, the totoal fixed cost
incurred by him was Rs.15,000 and the total variable cost per unit
was Rs. 368.

Then find the

i- Expression of TC in terms of Q
ii- If he produces the 100 suits then what would be his total cost?
iii- Write down the business meaning of regression coefficient
iv- Show the information with the help of a diagram.

Prof. Iqbal Shoukat

E-mail: [email protected]
Whatsapp no. 03009476991
Business Application of Linear Equation

Formula of linear equation derivation

Here
Y = Any dependent Variable
X = Any independent Variable
Y2 = Current value of Y
Y1 = Previous value of Y
X2 = Current value of X
X1 = Previous value of X

Prof. Iqbal Shoukat

E-mail: [email protected]
Whatsapp no. 03009476991
Business Application of Linear Equation
Formula of linear equation derivation

Y X

Here 35 = Y1 62 = x1
Y = Any dependent Variable
X = Any independent Variable 22 = Y2 78 = x2
Y2 = Current value of Y = 22
Y1 = Previous value of Y = 35 ? 112
X2 = Current value of X = 78
X1 = Previous value of X = 62

Prof. Iqbal Shoukat

E-mail: [email protected]
Whatsapp no. 03009476991
 Business Application of Linear Equation

Y = Any dependent Variable

X = Any independent Variable
Y3 = ?
Y2 = Current value of Y = 22
Y1 = Previous value of Y = 35
X2 = Current value of X = 78
X1 = Previous value of X = 62

Y = 85.375 - 0.8125X
Y = 85.375 - 0.8125(112)
Y = -5.63

Prof. Iqbal Shoukat

E-mail: [email protected]
Whatsapp no. 03009476991
Business Application of Linear Equation
Mr. Faisal is a sales manager at KFC burger shop, when the
price of burger was Rs. 175 the sales of KFC burgers was 750
burgers, then company increased price by keeping in mind the
demand of the product and settled the price at Rs. 225 and the
sales decreased to 625. Now the company settled the price at
Rs. 120 then how much Mr. Faisal will sale at KFC?

Price of Burger (X) Sales (Y)

P3 = 120 ?

P1 = 175 750 = S1

P2 = 225 625 = S2
Prof. Iqbal Shoukat
E-mail: [email protected]
Whatsapp no. 03009476991
Business Application of Linear Equation

Let
Price of burger = X
Sales = Y Price of Sales
Burger (X) (Y)
Here
X3 = 120 ?/888
Y = Any dependent Variable
X = Any independent Variable X1 = 175 Y1 = 750
Y2 = Current value of Y = 625
Y1 = Previous value of Y = 750
X2 = Current value of X = 225 X2 = 225 625 = Y2
X1 = Previous value of X = 175
Prof. Iqbal Shoukat
E-mail: [email protected]
Whatsapp no. 03009476991
 Business Application of Linear Equation
Price of burger = X
Sales = Y

Y = Any dependent Variable

X = Any independent Variable
Y2 = Current value of Y = 625
Y1 = Previous value of Y = 750
X2 = Current value of X = 225
X1 = Previous value of X = 175
Y = 1187.5 - 2.5X
Y = 1187.5 - 2.5(120)
Y = 887.5

Prof. Iqbal Shoukat

E-mail: [email protected]
Whatsapp no. 03009476991
 Business Application of Linear Equation

Student Activity

Mr. Haris is a supplier of Motor cycle tyres, when the price of

tyre was Rs. 1,175 he was supplying 1750 tyres, then
company increased price by keeping in mind the demand of
the product and settled the price at Rs. 2,200 and Haris
increased the Supply to 2650 tyres. Now the company settled
the price at Rs. 3,150 then how many typres Mr. Haris will
supply in the market

Prof. Iqbal Shoukat

E-mail: [email protected]
Whatsapp no. 03009476991
Business Application of Linear Equation

Prof. Iqbal Shoukat

E-mail: [email protected]
Whatsapp no. 03009476991
 Key Take Away
Students can solve systems of linear equations by substitution.
Students are able to determine if a system of linear equations has no
solution, one solution, or infinitely many solutions.
Students are able to determine which method is best to solve a
system of linear equations.
Calculate the rate of change or slope of a linear function given
information as sets of ordered pairs, a table, or a graph.
Apply the slope formula. Give the point slope and standard forms of
linear equations and define their parts.
Convert point slope and standard form equations into one another.
Apply the appropriate linear equation formula to solve problems.

Prof. Iqbal Shoukat

E-mail: [email protected]
Whatsapp no. 03009476991