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Welcome
to the presentation
on LINEAR EQUATION
Presented by
Nasim Khan
Assistant Professor
Department of Mathematics
Bangladesh University of
Business and Technology, Dhaka.
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
2
LINEAR EQUATION
TOPICS
Slope
Equation of line
Intercept
Slope-intercept form
Application of linear equation
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
3
Linear equation
Rule: If (x1,y1) and (x2 ,y2) be two points then
Slope , m = y2 – y1 / x2 – x1
Example:- If (12,- 5 ) and (3,6) are two points then
Slope, m = 6 – ( - 5 ) / 3 – 12
=11/(-8 )
Book- Bowen
Page- 25 to26
Same Problems: 9 to22
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
4
Linear equation
Rule: If (x1,y1) and (x2 ,y2) be two points then the
Line equation is
21
1
yy
yy
−
−
=
21
1
xx
xx
−
−
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
5
Linear equation
Example:- If (-2, -4)and (-1, 5) are two points
then, Find the equation of line.
Solution: We know ,The equation of a line is
=
21
1
yy
yy
−
−
21
1
xx
xx
−
−
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
6
Linear equation
⇒ =
⇒ -9(x+ 2)= -1(y+ 4)
⇒ - 9x – 18= - y – 4
⇒ - 9x + y = 14
Which is our required line equation.
Book- Bowen
Page- 36
Problem: 13 to 24
54
4
−−
+y
12
2
+−
+x
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
7
Linear equation
Rule: Slope-Intercept Form
y = m x + b
Where m is the slope and b is the y-
intercept
Example:-Write2y +3x =18 in slope-intercept
Form and state the value of the slope and
the y- intercept.
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
8
Linear equation
Solution: Given, the equationof the line is
2y + 3x=18
⇒ 2y = -3x +18
⇒ y = -3x/2 + 9
Which is our required form.
Therefore, slope of the line is -3/2 and y-intercept is 9 .
Book- Bowen
Page - 37
Problems: 47 to 50
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
9
Linear equation
Problem: If 5y - 2x = 30 is a linear equation
then find
(a) Write the slope-intercept form
(b) What is the slope of the line?
(c) What is the y-intercept?
(d) What is the x-intercept?
(e) Write the co-ordinate of the
points of the equation?
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
10
Linear equation
Solution: (a) Given, The line equation,
5y - 2x = 30 --- --- (1)
⇒ 5y = 2x + 30
⇒ y = 2x/5 + 6
Which is slope-intercept form.
(b) The slope of line is 2/5
(c) The y-intercept is 6
(d) Putting y = 0 in equation (1),then we have
5y – 2. 0 =30 ⇒ y = 30
So the x-intercept is 30.
(e) The co-ordinates of the points is (0,6) and (30 ,0)
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
11
Application of linear equation
 Cost function
 Average cost
 Marginal cost
What is cost function?
If x is the quantity produced of a certain goods by a firm at total cost c,
we can write the total cost function C = c (x)
There are two part of Total cost
(i) Fixed cost which is independent of x
(ii) Variable cost which is dependent of x
Therefore, Total cost = Variable cost + Fixed cost
⇒ TC = VC + FC
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
12
Application of linear equation
What is average cost?
If total cost (c) is represented as a function of output x,
the average cost (AC) represents the cost per unit of production.
i.e. Average cost = Total cost / Total quantity
= c / x
What is Marginal cost ?
Marginal cost represents the change in the total cost for each
additional unit of production.
i.e. Marginal cost = dc / dx
Marginal cost = Variable cost per unit = Slope
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
13
Application of linear equation
TOPICS
Revenue function
Break-even
Mark Up
Margin
Break- even Chart
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
14
Revenue function
Revenue is the amount of money derived from the sale
of a product and depends upon the price of a product
and the quantity of the product that is actually sold.
If q is the demand for the output of a firm at
price p, then total revenue (R) collected by the
firm is R(q) = pq
Revenue function:
R (q)=(Selling price per unit) (Number of units sold)
= p q
= Sales volumes (dollars)
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
15
Application of linear equation
Break-even: It means neither make a profit nor suffer a
loss. It’s simply means that revenue must equal costs.
So at break even, Revenue = Cost
i.e. Profit = 0.
Mark Up: It is the difference between the retail price and
the cost.
Therefore, Mark up = Retail price – cost
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
16
Application of linear equation
Example:- Suppose an stem costs $130 is price to sell at $200, Find Mark
up ?
Solution - We know, Mark up = Retail price –cost
= $(200 - 130) = $70
Mark up percentage on cost = 100% = 54%
Mark up percentage on retail price = 100% = 35%= Margin
Margin: Mark up / Retail price = 70/200 = 0.35 =35/100 = 35%
Margin 35% that means it is the markup percentage on retail price.
So 35% margin means (100- 35)% = 65% cost
130
70
200
70
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
17
Application of linear equation
BREAK-EVEN CHART
R&C
R
FCL
Q
NSO
L
T
M
I A
FC
VC
FC
VC
FC
TC
(Number of units)
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
18
Application of linear equation
CR & C
O
q
R
60,000
20,000
1,00,000
FCL
BEP
FC
Profit
Loss
( 20,000 , 100000 )
BREAK-EVEN CHART
BOOK- BOWEN, Page- 64 to 65, Problems- 13,14,15,16,29,30,31,32.
July 12, 2014 NK,Assistant Professor of
Mathematics,BUBT.
19
Home Work
Problems:
True/ False (1 to 12) & (19 to 28)
13,14,15,16,29,30,31,32
Page : 64 – 65
Book : Bowen

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Cost function

  • 1. Welcome to the presentation on LINEAR EQUATION Presented by Nasim Khan Assistant Professor Department of Mathematics Bangladesh University of Business and Technology, Dhaka.
  • 2. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 2 LINEAR EQUATION TOPICS Slope Equation of line Intercept Slope-intercept form Application of linear equation
  • 3. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 3 Linear equation Rule: If (x1,y1) and (x2 ,y2) be two points then Slope , m = y2 – y1 / x2 – x1 Example:- If (12,- 5 ) and (3,6) are two points then Slope, m = 6 – ( - 5 ) / 3 – 12 =11/(-8 ) Book- Bowen Page- 25 to26 Same Problems: 9 to22
  • 4. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 4 Linear equation Rule: If (x1,y1) and (x2 ,y2) be two points then the Line equation is 21 1 yy yy − − = 21 1 xx xx − −
  • 5. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 5 Linear equation Example:- If (-2, -4)and (-1, 5) are two points then, Find the equation of line. Solution: We know ,The equation of a line is = 21 1 yy yy − − 21 1 xx xx − −
  • 6. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 6 Linear equation ⇒ = ⇒ -9(x+ 2)= -1(y+ 4) ⇒ - 9x – 18= - y – 4 ⇒ - 9x + y = 14 Which is our required line equation. Book- Bowen Page- 36 Problem: 13 to 24 54 4 −− +y 12 2 +− +x
  • 7. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 7 Linear equation Rule: Slope-Intercept Form y = m x + b Where m is the slope and b is the y- intercept Example:-Write2y +3x =18 in slope-intercept Form and state the value of the slope and the y- intercept.
  • 8. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 8 Linear equation Solution: Given, the equationof the line is 2y + 3x=18 ⇒ 2y = -3x +18 ⇒ y = -3x/2 + 9 Which is our required form. Therefore, slope of the line is -3/2 and y-intercept is 9 . Book- Bowen Page - 37 Problems: 47 to 50
  • 9. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 9 Linear equation Problem: If 5y - 2x = 30 is a linear equation then find (a) Write the slope-intercept form (b) What is the slope of the line? (c) What is the y-intercept? (d) What is the x-intercept? (e) Write the co-ordinate of the points of the equation?
  • 10. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 10 Linear equation Solution: (a) Given, The line equation, 5y - 2x = 30 --- --- (1) ⇒ 5y = 2x + 30 ⇒ y = 2x/5 + 6 Which is slope-intercept form. (b) The slope of line is 2/5 (c) The y-intercept is 6 (d) Putting y = 0 in equation (1),then we have 5y – 2. 0 =30 ⇒ y = 30 So the x-intercept is 30. (e) The co-ordinates of the points is (0,6) and (30 ,0)
  • 11. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 11 Application of linear equation  Cost function  Average cost  Marginal cost What is cost function? If x is the quantity produced of a certain goods by a firm at total cost c, we can write the total cost function C = c (x) There are two part of Total cost (i) Fixed cost which is independent of x (ii) Variable cost which is dependent of x Therefore, Total cost = Variable cost + Fixed cost ⇒ TC = VC + FC
  • 12. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 12 Application of linear equation What is average cost? If total cost (c) is represented as a function of output x, the average cost (AC) represents the cost per unit of production. i.e. Average cost = Total cost / Total quantity = c / x What is Marginal cost ? Marginal cost represents the change in the total cost for each additional unit of production. i.e. Marginal cost = dc / dx Marginal cost = Variable cost per unit = Slope
  • 13. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 13 Application of linear equation TOPICS Revenue function Break-even Mark Up Margin Break- even Chart
  • 14. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 14 Revenue function Revenue is the amount of money derived from the sale of a product and depends upon the price of a product and the quantity of the product that is actually sold. If q is the demand for the output of a firm at price p, then total revenue (R) collected by the firm is R(q) = pq Revenue function: R (q)=(Selling price per unit) (Number of units sold) = p q = Sales volumes (dollars)
  • 15. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 15 Application of linear equation Break-even: It means neither make a profit nor suffer a loss. It’s simply means that revenue must equal costs. So at break even, Revenue = Cost i.e. Profit = 0. Mark Up: It is the difference between the retail price and the cost. Therefore, Mark up = Retail price – cost
  • 16. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 16 Application of linear equation Example:- Suppose an stem costs $130 is price to sell at $200, Find Mark up ? Solution - We know, Mark up = Retail price –cost = $(200 - 130) = $70 Mark up percentage on cost = 100% = 54% Mark up percentage on retail price = 100% = 35%= Margin Margin: Mark up / Retail price = 70/200 = 0.35 =35/100 = 35% Margin 35% that means it is the markup percentage on retail price. So 35% margin means (100- 35)% = 65% cost 130 70 200 70
  • 17. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 17 Application of linear equation BREAK-EVEN CHART R&C R FCL Q NSO L T M I A FC VC FC VC FC TC (Number of units)
  • 18. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 18 Application of linear equation CR & C O q R 60,000 20,000 1,00,000 FCL BEP FC Profit Loss ( 20,000 , 100000 ) BREAK-EVEN CHART BOOK- BOWEN, Page- 64 to 65, Problems- 13,14,15,16,29,30,31,32.
  • 19. July 12, 2014 NK,Assistant Professor of Mathematics,BUBT. 19 Home Work Problems: True/ False (1 to 12) & (19 to 28) 13,14,15,16,29,30,31,32 Page : 64 – 65 Book : Bowen