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01-Applications and More Algebra

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58 views29 pages

01-Applications and More Algebra

Uploaded by

John Snow
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Course : MATH6135-Business

Mathematics
Effective Period: September 2020

Applications and More Algebra

Session 1
Thank you
Acknowledgement

These slides have been adapted from:

Haeussler, Jr. E.F., Paul, R. S., Wood, R. J. (2019).


Introductory Mathematical Analysis for Business,
Economics, and the Life and Social Sciences. 14th.
Ontario: Pearson.

Chapter 1
Learning Outcomes

After studying this chapter, the students should


be able to :
• LO 1: Identify the concept of mathematics in
business decision making
• LO 2: Explain the mathematics analysis concept
properly in business decision making
• LO 3: Apply mathematics concept and critical
thinking to solve economics and business problem
in business decision making
Introductory Mathematical Analysis
For Business, Economics, and The Life and Social Sciences
Fourteenth Canadian Edition

Chapter 1
Applications and More
Algebra

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Chapter Outline
1.1) Applications of Equations
1.2) Linear Inequalities
1.3) Applications of Inequalities

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0. Operations with Algebraic Expressions (1 of
4)

• Special products can be obtained from the distributive


property:

Special Products

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0. Operations with Algebraic Expressions (2 of
4)

Example 5 – Special Products

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0. Operations with Algebraic Expressions (3 of
4)

Example 5 – Continued

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0. Operations with Algebraic Expressions (4 of
4)

Example 7 – Dividing a Multinomial by a Monomial

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1.1 Applications of Equations (1 of 7)
• Modeling is the translating of stated relationships into
mathematical symbols.

Example 1 – Mixture
A chemist must prepare 350 ml of a chemical solution made
up of two parts alcohol and three parts acid. How much of
each should be used?

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1.1 Applications of Equations (2 of 7)
Example 1 – Continued

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1.1 Applications of Equations (3 of 7)
We refer below to some business terms relative to a
manufacturing firm:

• Fixed cost is the sum of all costs that are independent of


the level of production.
• Variable cost is the sum of all costs that are dependent on
the level of output.
• Total cost = variable cost + fixed cost
• Total revenue = (price per unit)(number of units sold)
• Profit = total revenue − total cost

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1.1 Applications of Equations (4 of 7)
Example 3 – Profit
The Acme Company produces a product for which the
variable cost per unit is $6 and the fixed cost is $80,000.
Each unit has a selling price of $10. Determine the number
of units that must be sold for the company to earn a profit of
$60,000.

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1.1 Applications of Equations (5 of 7)
Example 3 – Continued

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1.1 Applications of Equations (6 of 7)
Example 5 – Investment
A total of $10,000 was invested in two business ventures, A
and B. At the end of the first year, A and B yielded returns of
6% and 5¾% (5.75%), respectively, on the original
investments. How was the original amount allocated if the
total amount earned was $588.75?

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1.1 Applications of Equations (7 of 7)
Example 5 – Continued

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Exercise
1. A corn refining company produces corn gluten cattle feed
at a variable cost of $82.per ton. If fixed costs are
$120,000 per month and the feed sells for $134 per ton,
how many tons must be sold each month for the
company to have a monthly profit of $560,000?

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1.2 Linear Inequalities (1 of 5)
• An inequality is a statement that one quantity is less than,
or greater than, or less than or equal to, or greater than or
equal to, another quantity.

Rules for Inequalities:

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1.2 Linear Inequalities (2 of 5)

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1.2 Linear Inequalities (3 of 5)

A linear inequality in the variable x is an inequality


that can be written in the form ax  b  0
where a and b are constants and a  0.

• To solve an inequality involving a variable is to find all


values of the variable for which the inequality is true.

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1.2 Linear Inequalities (4 of 5)
Example 1 – Solving a Linear Inequality

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1.2 Linear Inequalities (5 of 5)
Example 3 – Solving a Linear Inequality

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1.3 Applications of Inequalities (1 of 4)
• Solving word problems may involve inequalities.

Example 1 – Profit

For a company that manufactures aquarium heaters, the


combined cost for labor and material is $21 per heater. Fixed
costs (costs incurred in a given period, regardless of output)
are $70,000. If the selling price of a heater is $35, how many
must be sold for the company to earn a profit?

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1.3 Applications of Inequalities (2 of 4)
Example 1 – Continued

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1.3 Applications of Inequalities (3 of 4)
Example 3 – Current Ratio

After consulting with the comptroller, the president of the Ace


Sports Equipment Company decides to take out a short-term
loan to build up inventory. The company has current assets
of $350,000 and current liabilities of $80,000. How much can
the company borrow if the current ratio is to be no less than
2.5? (Note: The funds received are considered as current
assets and the loan as a current liability.)

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1.3 Applications of Inequalities (4 of 4)
Example 3 – Current Ratio

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Home Work
1. To produce 1 unit of a new product, a company
determines that the cost for material is $2.50 and the cost
of labor is $4. The fixed cost, regardless of sales volume,
is $5000. If the cost to a wholesaler is $7.40 per unit,
determine the least number of units that must be sold by
the company to realize a profit.
2. To produce 1 unit of a new product, a company
determines that the cost for material is $2.50 and the cost
of labor is $4. The fixed cost, regardless of sales volume,
is $5000. If the cost to a wholesaler is $7.40 per unit,
determine the least number of units that must be sold by
the company to realize a profit
Copyright © 2019 Pearson Canada Inc. All rights reserved. 1 - 28
References

Haeussler, Jr. E.F., Paul, R. S., Wood, R. J. (2019).


Introductory Mathematical Analysis for
Business, Economics, and the Life and Social
Sciences. 14th. Ontario: Pearson.

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