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Module 3

The Critical Points Of A Function

MATH 4: APPLIED MATHEMATICS

Mary Jane Alivio - Bundac


Faculty Member, Mathematics Department
Break – Even Point Analysis
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Lesson 3.3 Critical Points By Non-Linear Functions

Higher-Order Derivative:

Recall the following notations of derivatives in their second degree order from the given
functions and its first derivatives.

Functions First Derivatives Second Derivatives


y dy/dx ; y ‘ d2y/dx2 ; y “
f(x) f ‘(x) f “(x)
R(x) R’(x) R”(x)
C(x) C’(x) C”(x)
P(x) P’(x) P”(x)

The 2nd degree, 3rd degree, or up to the nth degree derivative is referred to us a Higher-
Order Derivative. In such a way, that the 2nd derivative is a derivative of the 1st and the 3rd
derivative is also the derivative of the 2nd.

Example:

1. Find the 2nd derivative of the function, y = 4x3 - 3x2 – 2/3x + 15.
Solution:
a. Find the 1st derivative (dy/dx).
dy/dx = 12x2 – 6x – 2/3

b. Find the 2nd derivative (d2y/dx2) (the derivative of the 1st)


d2y/dx2 = 24x -6

2. Find the 3rd derivative of the given 2nd derivative f “ (x) = x – 2 .


x3
Solution:
f ‘’’(x) = x3 (1) – (x – 2)(3x2)
[x3]2

= x3 – 3x3 + 6x2
x6

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Break – Even Point Analysis
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f ‘’’(x) = - 2x3 + 6x2


x6

= - 2x2(x – 3)
x6

f ‘’’(x) = - 2(x – 3)
x4

Finding The Critical Points Of Non-linear Functions

The following are the suggested steps in locating the critical point/s such as:

a. Maxima (or Maximum points)


b. Minima (or Minimum points).

1. Find the first derivative of the given function.


2. Equate the first derivative to zero and solve for x (a critical value).
3. Substitute the value of x in the original function and solve for y. These coordinates
of x and y are the critical point and a candidate for a maxima or minima.
4. Test whether the point is maxima or minima by finding the second derivative.
- If the second derivative is negative, the critical point is maximum; and
- If the second derivative is positive, the critical point is minimum.

Example:

Solve the application problem.


The unit selling price of a particular product is Php200.00. Due to competition it has
been decided to reduce the price by 1% of the number of units sold. If the variable
cost is Php150.00 and the fixed cost is Php10,000.00, find the maximum profit.

Solution:
Let x = be the volume of sales
New unit selling price (p) = (200 – 0.01x)
V = Php150.00
FC = Php10,000

Revenue Function: R(x) = px Cost Function:C(x) = vx + FC


R(x) = (200 – 0.01x)x C(x) = 150x + 10,000
R(x) = 200x – 0.01x2

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Break – Even Point Analysis
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Profit Function: P(x) = R(x) – C(x)


P(x) = (200x – 0.01x2) – (150x + 10,000)
P(x) = 50x – 0.01x2 – 10,000

P(x) = – 0.01x2 + 50x – 10,000

Steps:
1. Find the first derivative:
P ’(x) = - 0.02x + 50 (first derivative)

2. Let P ’(x) = 0
-0.02x + 50 = 0
-0.02x = - 50
x = - 50
-0.02

x = 2,500 units

3. Substitute x = 2,500 units to P(x):


P(2,500) = -0.01(2,500)2 + 50(2,500) – 10,000
= Php52,500

Hence, C.P. (2,500, 52,500)

4. Test whether the critical point is maximum or minimum.


P ’(x) = - 0.02x + 50 (first derivative)
P ‘’(x) = - 0.02 (second derivative)
P ‘’(x) is negative (critical point is maximum)

Interpretation:
The maximum number of units to sell must be 2,500 to obtain a
maximum profit of Php52,500.

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Break – Even Point Analysis
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Exercises:

Solve the following problems.

1. Find the two non-negative numbers x and y for which 2x + y = 30, such that xy2 is
maximized.

2. A farmer has 1,200 m of fencing. He wants to enclose a rectangular fiend bordering


A river, with no fencing needed along the river. Let x represent the width of the field.
a. Write an expression for the length of the fields.
b. Find the area of the field (area (A) = Length x Width).
c. Find the value of x leading to a maximum area.
d. Find the maximum area.

Assignment:

Solve the problems as application of critical points by non-linear function.

1. The sale of game headphone of “lesser” performers is very sensitive to price. If a


headphone manufacturer charges p(x) dollar per headphone, where

p(x) = 6 - x ,
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then x thousand of headphones will be sold.
a. Find an expression for the total revenue from the sale of x thousand headphones.
b. Find the value of x that leads to maximum revenue.
c. Find the maximum revenue.

2. Find the dimensions of the rectangular field of maximum area that can be made from
200 meters of fencing material. (This fence has four sides)

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Break – Even Point Analysis
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3. Epidemiologists have found a new communicable disease running rampant in College


Station in a certain University. They estimate that t days after the disease is first
observed in the community, the percent of the population infected by the disease is
approximated by
p(t) = 20t3 – t4
1000
for 0 ≤ t ≤ 20.
a. After how many days is the percent of the population infected a maximum?
b. What is the maximum percent of the population infected?

4. A company has the following total cost and total revenue functions:
R(x) = x3 – 59x2 + 1315x + 2000,
C(x) = 1000x – 2x2, where x is the number of units to sell.
a. Find the units to sell for maximum profit.
b. Find the maximum profit.

References

Altares, P.S. (2004). Quantitative Techniques for Business (with Computer Application).
Quezon City: Rex Printing Company Inc.

Giordano, F.R. et. al. (2014). A First Course in Mathematical Modeling. 5th edition. Cengage
Learning.
Kolman, B. and R. E. (1995). Beck. Elementary Linear Programming with Applications.
Elsevier Science & Technology Books.

Mooney, D.D., et. al. (1999). A Course in Mathematical Modeling. USA: Mathematical
Association of America.

Stewart, J. (2008). Calculus Early Transcendentals. 6th ed. USA: Thomson Learning, Inc.

Khan Academy: Solving Inequalities-Linear and Compound Inequalities Transcendental


Functions-Exponential Growth Functions/Exponential and Logarithmic Functions

WIT Press. (2020). Environmental break-even point. England: https://www.witpress.com

Research Gate. (2020). Carbon Break Even Analysis: Environmental Impact of Tablet in
Higher Education.USA: https://www.researchgate.net
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Break – Even Point Analysis
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