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In the name of Allah, The most gracious, The most merciful.

• بسم لرحمن١الله الرحيم

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Course TeacherMD. JAHIRUL HAQUE MUNSHI

LECTURER & PROCTOR Department of Mathematics,

HUB.

MD. HABIBUL ISLAM HAMDU BBA StudentDepartment of Marketing, HUB.

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PRESENTATION TITLE:

IMPORTANTS OF BUSINESS MATHEMATICS AND ITS

APPLICATION.

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CONTENTS OF CONTENTS OF PRESENTATIONPRESENTATION

• The Presentation consist of The Presentation consist of twotwo chapter, as follows chapter, as follows

(i)(i) Chapter – 1Chapter – 1: Introduction: Introduction

(ii)(ii) Chapter – 2Chapter – 2: Business Application.: Business Application.

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Problem:A manufacturer of compact discs (CDs) has a fixed cost of Tk. 10,000

and variable cost of Tk. 7 per CD made. Selling price is Tk. 12 per CD. (a) Find the revenue, cost, and profit functions.

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(b) What is the profit if 2800 CDs are made and sold?

(c) What is the profit if 1000 CDs are made and sold?

(d) At what number of CDs made and sold will the manufacturer break- even?

(e) At what sales volume (revenue) will break-even occur?

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(a) Let the number (quantity) of CDs made and sold by q. selling price is Tk. 12 per CD, so the revenue function is R(q) = 12q.

Now since compact discs (CDs) has a fixed cost of Tk. 10,000 and variable cost of Tk. 7 per CD made, so cost function is C(q) = 7q + 10,000.

Lastly, the profit function is P (q) = R(q) – C(q) = 12q – (7q + 10,000) = 12q – 7q - 10,000 = 5q -10,000.

SOLUTION:

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(b) If 2800 CDs are made and sold, then the profit is p (2800) = 5(2800) – 10000 = Tk.4000

(c) If 1000 CDs are made and sold, then the profit is p (1000) = 5(1000) – 10000 = - Tk.5000, indicating a loss of Tk. 5000.

(d) At break-even, profit = 0. Thus p (q) = 0 SO 2000 CDs.(e) Finally, the break-even Tk. volumes of sales

(revenue) is R(2000) = (12)(2000) = 24000Tk.

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Any Question or Suggestions please?

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THANKS TO All

May Allah Bless Us all

THANKS TO All

May Allah Bless Us all

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