% ets Bahria, University, Committed to Excollenco in Highor Education| Business Mathematics-I [QTM-101] Assignment#02 Title: Applications of Linear & Quadratic Functions Group Member Name Registration # Tehreem Bukhari O1-11222.- 16 Mutaika Iman Ol- 231-154 Ubaiduallah Qayyum [Ol 111231- 213 Ky Total Marks: 30 Business Matematics-IBAHRIA UNIVERSITY, ISLAMABAD CAMPUS BUSINESS STUDIES DEPARTMENT Programme: BBA Seetion:_C Semester: Spring-2023 BBA-1C Questioni#1: [CLO-2; PLO-3} {6-Marks} HMO provides health care to individuals and families on a prepaid basis. Typically, the subscriber pays an insurance premium for which most health care services are provided. These organizations typically emphasize preventive health care, and subscriber usually do not pay for office visits. A survey indicated that this type of insurance plan is being selected by more individuals, In 1980 there were 24 million individuals covered by these types of plans. In 1985 there were 28.4 million. If growth is assumed to be occurring at a linear rate: 8) Determine the estimating function n = f(t), where n equals the number of individuals covered by HMO plans and t equals time measured in years since 1980. Interpret the meaning of slope. If the linear pattern continues, what is the number of individuals covered by HMO expected tobe in the year 2000? What is restricted domain in this case? ©) Sketch the function. (@) To determine the estimating function n=F(t), we meed 10 find the ceyvation fov & near > yelatfonship between the Number of Tnclividvals coveved by HMO plans (h) Gnd Afme measuved in years Strnce 1980 (+). Business Matematics-1(1920, 241 wittion) C185 , 2B-Ly wiion). Using these 2- points , we cain CA - (m) “of the Vnear_yelationship (ootate the slope m™ = (28-4 ~ 244) | (1485-140) Geli willvon | 5 mM = 0°88million per qeor nt Now let$ use the pofnt-slope fore 5 m= 0°88 A(0,24) v4t = m(x-x1) 2H = 0°88 (x-0) ye 088% + 24 Go. the estimating Junction for the 7 coveved by 1M" plans 53 n= 0e88t + 24 mber of wdividuals yvepresents the vate of (b) the Slope tn ahis context fndlivicduals coveved qnevease Wn the number of by HMO plans pey Year In Abts case, it frdicates that, On ewevage , the number © tndivicluals covereal_by HMO plans tneveases by _02°38million each year Sfnce 1980 (c) To find the estimated number of fhaividuals covered by tMO plans th the year 2000, we need 40 Substitute t= 2000 ~1430 = 20 a 2000 ~1480 = 20° §nio the estimating fonction : 0088 (20) + 24 1796 +24 Lile Gynillion W n w "“hevefore, if the Uheay patievin continues, the Number of tnelivicuals covered by HMO Plans — “the yeqy 2000 ’s expected do be approximately Ue byvillion - (d) ane vestricted domain fn th®s case would be the Yange Of values fov t+ Since he data Starts fyorm 1980 and we ave assuming a Wneeav Growth , jhe domain would be t 20 (yeas Sihce 1930 ). (e) Ahe y-axis vepresents the years since 1480 (t) and the y-axis yepresents the number of fnalivicluals covered by HMO plans (nh). dhe points on dhe qvaph Connect 4° fovm Qa Straight \the inelicating the \fneay growth Te Over time n (number) 55 50 45 4o 35 30 tt ays os Wo 15 3025 30 de TY )Question#2: [CLO-2; PLO-3] [5-Marks] AA firm produces three products which sell respectively for $25, $35 and $50. Labour requirements for each product are respectively 3, 4 and 3.5 hours per unit. Assume labor costs are $5 per hour and annual fixed costs are $75,000. 8) Construct a joint total revenue function for the sales of three products, b) Determine an annual total cost function for the production of three products. ©) Determine the profit function for three products. 4d) What is annual profit if 10,000, 20,000 and 30,0000 units are sold, respectively of the three products? (a) 4o_constvuct the foint yevenve function for the Sales Of thvee products , we neeal to smultiply the _pvice of each pyoduct by the quantity gold andl Som them op $ Rix) = P¥Q Total Revenve = Price x Quantity 1 sold Product 4 Product 3 :~ R(%3) = SOx3 1 Ahe total oink Yevenve fonction S53 Rlxix20%3) = 26x14 35x24 SOX3 Business Matematics-I(b) To determine the annval total cost function for the pyodvetion of three products, we neeel Ao consider both labor cost (variable cost) + fixecl costs § C(x) = Variable Costs + Fixed Costs Nous » Calevlat prodcey 7 the labour costs for each Labour Cost for product 4 = Bx5< $15 labour Cost for product 2 = 4y 5 = $20 labour Cost for product 3 = 365x5 = $1795 the variable cost would be 5 te vaneble cost wovld be 3 Vaviable cost for pyoduct 4 = IS xy vaviable cost for pyocluct 2 = 20x2 variable cost fov prociuct B= ITS x3 E%xed cost % alvead given 5 fxecl cost = $15,000 Ahe annval total cost function fs 5 C(x) = FO+ NVC C(x, X25%3) = (15x, +20%2 +17-5x3) + 75,000 (c) Ao determine the profit function, we Subtvact the jotal cost from the total _yevenve 3 Profit = Reverve ~ Cost P(x) = TR-TC £20 x2 +1725 ¥3 + 13000 | Planes X38) = (250:#35#3 + 50x2) —[(154 A ) ~20 x2 ~17° 5x3 + 15000 25x, +35x2 $50 x3 ~15%: 2 - 75000 P(x %2,%3), = Ox, + 15x24 32°Sx3 - 75)(a) To calevlate the annval profit if 10,000 3 20,000 $3 0,0 vnifs ave sold , respectively » of the three S peduats we need tO Substitute these peantities fnto the yofit function. X= 10,000 nits X2 = 20,000 units %3 = 30,000 vnits Susstituring the values Tinto the pyefit fonction 3 P (xi. x2, ) = 10x1 + 1SK2 + 32°5%3 ~ 75,000 = tO(10,000) + (5(20,000) + 32°5 (30,000)- 75,000 = 100,000 + 300,000 + 475,000- 15000 = 1,300,000 Ahevefove, the cinmval pYofit would be $1,300,000 if 10,000 , 20,000 & 30,000 vnits Gre Sold Yespectivel tthe three pyodvcts.Question#3: [CL0-2; PLO-3] [4-Marks] A travel agent is planning a week-long ski trip for students at a local university. The package includes airfare, breakfast and dinner cach day, transfers, lodging and lift tickets. The price is ‘$450 per person unless the number of persons signing up exceeds 150. In this case, the package rice for all persons is reduced by $2.50 for each person in access of 150. If p is price and n ‘equals the number of persons signing up for the trip, determine the function p = f(n).. Yo determine the function _p=f{(n) ,we need to considey the Conditions Stated tn the problem 4 Fivectly 5 P= price pey person n= humbev of persons signing op for the trip athe given conelftions ave 5 @) The fiifal price is $450 perv person (2) If the number of persons signing vp \SO, the price fs yeduced by $2950 for each fn excess of (50 exceeds pevson Now, we express dhis as a fonction 3 For NE 150 s~ p= $4150 per person For n>150 :~ p= $450~ ($2950 x (-150)) Ahevefore , the function ps f(n) can be defined as $ $450 if n1s0 Business Matematics-IQuestion#4: [CLO-2; PLO-3] [4-Marks] A company produces e-bikes. A rental cost of a fuctory is $8,000 a month and the cost of heat and light there is $6,000 a month. The selling price per e-bike is $2,000. The cost of materials per e-bike is $400, How many e-bikes per month docs the company have to produce and sell to Teach the break-even level of output? To_cateulate dhe break-even level of ovtput for the company + w 1 40 consider’ the costs and selling Rental, Cost = $8000 per month Cost t heat § light = $6000 per month Selling price per exbikke = § 2000 Cost of materials per evike = $4100 ahe total cost per month (Cc) fs the sum Of the Yental_cost,cosi of heat _§ Waht and the vaviable prede cing each e-bike 3 C= Rental Cost + Cost of heat & Ifght + (cost of materials per e-bike x @ C= $8000 + $6000 + ( $400xQ) C= $14,000 + $400Q Ahe total yevenve per month (R) is the selling price pey e-bike multiplied by the number & e-bikes produced § Sold ¢ R= Sellin price pey e-bike x Q R= $2000Q do veach the break-even Level of ovtput,the 4oral_Yevenve (R) must eqval the total cost Ce Business Matematics-I BuIc6 R=c $2000Q = $14000 + $400Q g ‘is the number Of e-bikes produced § Sold perv mnoitn $ 16,000 @ = $14,000 Q = $14,000 $16,000 Q= IS Qed lh 3 the eile Aas Company needs to produce Se" (G)e-bikes per month to Yeach the bi even level of ovtpur.Question#5: “[CLO-2; PLO-3) The total cost function for producing a product is C(x) = 100x? + 1300x + 1,000 ‘Where x equals the number of units produced in thousands and C equals cost in thousands of dollars, Each unit of product is sold for $2000. Formulate the total revenue function (stated in thousand of dollars) and determine 8) The level of production required to break even b) The level of output that would result in maximum profit. ©) The expected maximum profit. To formvlate the total _vevenve fonetfon, we need to consider the + tg Ei the lever of pregusics | ee” R uF Selling © pey unit X numbey OF nits produced (x) Price per OF ayocluction yeaivecl +o break— even occuvs when the total Yevenve equals total cost 3 Re) = Cx) 2000% = 100x>+ 1300x + 000 100 x2 41300 x + 1000~ 2000x% =O toox2— Joox +0 =O Now, we golive the eqyation by using the quadvatic formula ¢ Business Matematics-I= (b+ [b= Hae ) 20 ° potiing the values of a,b,c Yn the vadvattc = 100 fovrnula % b = -100 c= 1000 oo x= -(100) + [-700)* 44(\00) (1000) Perea 200) a % = 700 + | 3q0,000 ie 200 Since, we ave Tntevestect In the positive valve of %, We choose 3 x= 700 + J 390,000 / 200 x w 162 Hlheve fore 3 the level of production veayived yo break even 7 is approximately 7,620 omts Gn yhovsands). (b) Abe level of ovipvt that would yesvit_th maximum profit can be determined by finding dhe maximum point of the pyoftt function « Since vofit Ts calevlated Gs Yevenve yrinus cost we need +o fovmolate the pre tt function 3 P(x) = R(&)- CC®) P(x) = 2000% -(00 x* + \S00% +\000) 2000 x — 100 %*- 1300 x -100x*4 700 — (000 - {000 EtAo find the level _of ovtpot that would vesole tA maxtrnum pvofit »we need to find dhe vertex of the vadvattc fencton ° x-coordtnate of the vertex can ibe he _x- coordinate T_T ound using the Lovmular $ x=-b/24 Tha ovr case , Q=-100, b=700. Substituting | dhe values the values x= -700 [(@x~100) x= BS therefore athe level of ovtpot that wovld yesolt fa maximum profit 1s 3,500 onits Cin_Ahovsands ) (c) Ao determine the O Business Matematics-I| (30, 1000) :~ 1000 = a(30)*+ b(30) + ep —®@ 1000 = G0o0q + 30b4¢c CS, 2800) s~ 2800 = ACIS)*+ bis) + ep ® 2900 = 225q + ISbic To eliminate the term we can Sobstvact eqe © from @& B) ~ (000 = 400Q9 + 30b+¢ (3900 = 100q +10b +c) -2800 = 60q + 206 —__» @) 2800 = 2254 415b4e — (3800 = (00q 4106 +c) see Seen 2 (QELS) -1000 = 125a + Sb —___»G) Now we multiply ecyo @) by 5 § eqyuG) by 20 40 Simplify the cocgiftents of 6B aa ~ {4000 = 40004 + (00b—+» 6) 25004 + 100b —> @) ubtractin equ © from eayo @ 3~ _ 100 - (~ 14000) = (25004 +(G0b)~ (41000Q+ 20,01 ( 14009) = ¢ ) 100b) ~ 6000 = - \S00qG a= ~-6000 /-|\500 4 - 20,000 =[senses the valve of (a = 4) fn eq ©) a~ / ~ 14000 = 4,000 (4) + 1006 ~ (4000 = (6000 + |00b lo0b = ~ 30,000 Substituting the values of (a=4) & (b=- 300 Jacq O = 2) — 3%00 = 100 (4) + 10-300) +o 300 = 4oo- 3000+*C 3300 = —2600 + c c= 6400 Aheve fore y the eq? for clemand fonctor rs aya = 4(p) = Lp*- 300p + 6400 (b) Ao find the quantity demanded at a market pvyice OF Fs, we SobsHtvte pHs Tato he demand function 5 ad = fC 5) = 4(5)* 300(5) +6400 = 100-1500 + 6400 qd = 5000 Aheve fore , tne ayuantity demanded at the market pvice of $5" fs 20.(c) ie fhcel the pyice gt which demand ak be Zevo, we ger Gad=0 Solve Sn the demand func. e~ Yd = 4x2 300x + 6400 O = Hx*- 300% +6400 ; 4 (x? 15x + 1600) = 9 XH 15% +1600 = 6 (a=1)(b= +75) (c= 1600) Dise = bX ae (-15 )*— 41 (1)(1600) 5625 ~ 64100 =-175 <0 tt ti Ahe value (-175) is less than zevo therefore a ual not meet maxis Welemaned ill mot be Tere: For minimum clemanhd 3 QVonin) = oe 2a (- 20 24) 3105 GY Feniny. = (d) To Sketch the demand function , we can vse the x- inteves t, Y-Intercept »vevtex, gand concavity 3pAty ( evcept 3 %=6 4= 4%*~ aoox + 6400 d= 400) ~ 300(0) + 64100 d= S400 Fi Y-Tnterce Pt= (0, 6400). ntercept 3 44 Ee foweton acter meet Gt x-axes explained ty avt (Cc) of this js w We can ffnd vertex Eornul aaa Nevtex =] -bB Lyac-b> 2a » USING the following v Ha A= Hp?~ 300p'+ 6400 | = H)(b = = 300) = ex00) Nevtex = (aqe5 , 4 (4)(64 00) - ¢300)* ANG 00) ~ 300)* 4(A) Nevtex = (395, 115) &) oneawiny fs +o be determined $ a=4 (a> 0) if (a70), the pavabola_opens vpwaral & the clemand func jis concave op: the _clemand pna4) Q@temanded) , 7 ' ES { A Oo z 7B 15 20 25 30 as{do 45 50 55 60 62 40 BPS price ¢ P .