Chapter 3:

Straight line

1
Type 1: Slope of the line passing through the points
𝑥1 , 𝑦1 & 𝑥2 , 𝑦2
𝑦2 −𝑦1
𝑚= ,
𝑥2−𝑥1
Compute the slope of the segment joining each pair of the points.

1. 0,0 , 2,2
2. 6, −1 , −2,0
3. −3, −2 −3, −4
1 1 1
4. ,− , 2, −
2 4 4
5. 1.6,3.8 , −3.6, −4.2 , 2
Linear equation
Rule:

If (x1,y1) and (x2 ,y2) be two points then the

Line equation is
y − y1 x − x1
=
y1 − y2 x1 − x 2

3
Type 2.
Determination of the equation of the straight line

1. A (-1, 2), B (2, -1)

2. (7, -5), (-9, 7)
3. (-7, 2), (-7, -8)
4. (2, 3), (-5, 6)
4
Type 3:
Slope-intercept form y=mx+c
Write the slope intercept form and value of
m and c
1. 2y+3x=18
2. 5y-22x+3=0
5
Application of linear equation
1. Problem (Page-30, Book: Pricheet-Saber)
It cost $2500 to set up the presses and machinery needed to
print and bind a paperback book. After setup, its costs $2 per
book printed and bound. Let x represent the number of books
made and y the total cost of making this number of books.
(a) Write the equation for y in terms of x
(b) State the slope of the line, and interpret this number
(c) State the y-intercept of the line, and interpret this number

6
Therefore, Cost = Cost per book + setup cost
= Variable cost + Fixed cost
=$2.1+$2500
y = 2x+2500

7
 Solution
Given,
Setup cost (Fixed cost) = $2500
Variable cost = $ 2per book printed
x = the number of books made
y = the total cost
(a) We know,
Total cost, y = Variable cost + Setup cost
 y = 2x + 2500

(b) The slope is 2

The slope = 2, means that every additional book printed, starting
with the first copy, adds $2 per copy.
Which is the extra cost when an additional copy is made.

8
 Solution

(c) The y-intercept = $2500

If x = 0 books are made then the total cost,
y = 2.0 + 2500 = $2500
This means if the machines were made ready and then it was
decided not to printed the book, this cost would still be
incurred.

9
2) It costs Tk. 25,700 to set up the factory needed to
produce a keyboard. After set up, its costs Tk. 120 per
keyboard production. Let x presents the number of
keyboard and y represents the total cost of making it.
i) Write the equation for y in terms of x.
ii) State the slope of the line and interpret this number.
iii) State the y-intercept of the line and interpret this
number.

10
3. If the total manufacturing cost, y taka of
producing x units of a product is Tk. 500 at
50 units output and Tk. 900 at 100 units
output, and the cost output relation is
linear.
i) What is the slope of the cost output line?
ii) How much does the production of one
add to total cost? (Example 58)

11
4. The angel publisher asks a printer for
quotations on the cost of printing 1000 and 2000
copies of a book. The printer quotes Tk. 4,500 for
1,000 copies and Tk. 7,500 for 2,000 copies.
Assume that cost, y is linearly related to x, the
number of books printed.
i) Write the co-ordinates of the given points.
ii) Find the equation of the line.
iii) What is the cost of printing 2500 copies?
(Example 57)

12
Application of linear equation
5.Problem: (Page-51, Book: Pricheet-Saber)
A printer quotes a price of $7500 for printing 1,000
copies of a book & $15000 for printing 2,500
copies. Assuming a linear relationship and that
2,000 books are printed:
a) Find the equation relating the total cost, y, to x,
the number of books printed.
b) What is the variable cost?
c) What is the fixed cost?
d) What is the variable cost per unit?
e) What is average cost per unit?
f) What is the marginal cost of the last book
printed? 13
Solution:
Here,
y = Total cost and
x = The number of books printed
The information given consists of two points whose
co-ordinates(x,y) are in the order (Units made , total cost )
These are (1000,7500) and (2500 , 15000)
We have,

y − 7500 x − 1000
=
7500 − 15000 1000 − 2500

y − 7500 x − 1000
 =
− 7500 − 1500

14
 y − 7500
= x − 1000
5

 y -7500 = 5x – 5000  y = 5x + 7500 -5000

 y = 5x + 2500 Which is required relation.

(b) The variable cost is 5x = 5.2000 = $ 10000

(c) The fixed cost is 2500
(d) The variable cost per book is $5
(e) The average cost per book is ( 5.2000 + 2500) / 2000 = 6.25
(f) The marginal cost of the last book printed is $ 5

15
6) The Beximco Company has a linear total cost function and has
determined that it has a total cost of Tk. 13980 on sales of Tk. 6,000.
The same company has a total cost of Tk. 18620 on sales of Tk.
14,000. Determine:
i) The revenue, cost and profit function using s for sales volume.
ii) fixed cost.
iii) Variable cost on sales of Tk. 60,000.
iv) Total cost on sales of Tk. 60,000.
v) The break-even point. Draw break even chart.
vi) Profit before taxes on sales of Tk. 65,000.
vii) When tax rate is 15% on profit, what will be the profit for
75,000 sales? (Example 70)

16
7. The square company has linear total cost function and has
determined that over the next three months it can produce 12000
units at a total cost of Tk. 2,24,000. This same manufacturer can
produce 18000 units at a total cost of Tk. 296000. The selling price
per unit is Tk. 13.25.
i) Determine the revenue, cost and profit function using q for
number of units.
ii) What is the fixed cost?
iii) What is the marginal cost?
iv) Find the breakeven quantity? Draw the break chart.
v) What is the breakeven volume of sales (Taka)?
vi) What will profit be if the square company shuts down
operations?
vii) If , because of a strike , the company will be able to produce only
10,000 units, should it shut down for the next three months? Why or
why not? (Example 69) 17
8) A manufacturer has fixed cost of Tk 1,20,000
and a variable cost of Tk. 20 per unit made and
sold. Selling price is 50 Tk per unit.
i) Find the revenue, cost and profit function
using x for number of units
ii) Compute profit if 10000 units made and sold
iii)The break-even quantity
iv) The break-even quantity taka volume of sales
v) Construct the break chart. Label the cost and
revenue chart. (Example 75)
18
19
 Math for practice

Book: Business Mathematics by Abdul Aziz

Format 3: Business Application
Example no. 57-83
Exercise no. 39-58, 60- 62

20
21