QQM1023 Managerial Mathematics

Y = mx + C

3.1 INTRODUCTION
• A function f is a linear function if and only if f ( x) can be written in the
form f ( x) = mx + c , where m and c are constant and m ≠ 0 .

• Let y = f ( x) , then y = mx + c , is an equation of a straight line with slope

m and y-intercept c.

y = mx + c
slope y-intercept

• Thus, the graph of a linear function is a straight line.

y
y=mx+c

Example 1:

Determine whether the functions given is a linear function or not. If it is,

then identify the slope (m) and the y-intercept (c).
a) y = -3x + 4

b) 2y = 4x3 – 6

c) y = x½

d) 4y = 24x + 16

e) y = (x2 – 81)
(x-9)

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3.2 Slope of a line (m)

• The slope determine whether the line is skewed to the left (m is

negative) or to the right (m is positive)
• To calculate the slope of a line connected by two points namely (x1,y1)
and (x2,y2) :

Slope (m) = y2 - y1
x2 - x1

Slope(m) = - y-intercept
x-intercept

• Types of slope :

a) Positive slope b) Negative slope

- Skewed to the right - skewed to the left
- eg : y = 2x - eg : y = -2x

c) Horizontal line d) Vertical Line

-m=0 - m = undefine
- eg : y = 3 - eg : x = 3

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Example 2:
Find the slope of the straight line connected by these two points

a) A( 5,4) andB(-1,2) b) P(11,-3) andQ(-3,7)

c) R(k, 2k2) and S(3, 6k) d) T(-5, 4) andU(3,4)

e) L(3.5, 0) and M(3.5, 4.5) f) Y(0, -9) and Z(1.5, 0)

3.3 Equation of a straight line

There are 4 ways to form an equation of straight line:

a) Given : Slope(m) and y-intercept (c):

y = mx + c
Example 3:
If the slope of a straight line L is 2 and the y-intercept is 5,
Form the equation that define the straight line.

m = 2 and c =5
Equation:

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b) Given : Slope (m) and a point (x1,y1) on the line :

y – y1 = m (x – x1)

Example 4:
Find the equation of the straight line with the slope m and pass through
the point P :
i) m = 4, P(-3, 2)

Equation :

Exercise:
ii) m = -5, P(-2,1)

iii) m = 1/3, P(4,-2)

c) Given : 2 points on the line : (x1,y1) dan (x2, y2)

- Start by calculating the slope of the line using the formula:

Slope (m) = y2 – y1
x2 – x1

- Then pick a point, and replace the x coordinate and y coordinate

as well as the slope(m) in the formula :

y – y1 = m (x – x1)

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Example 5:

Find the equation that pass through the given points.

A( 4, 3) dan B(-2, 0)

x1 y1 x2 y2

Slope =

m =

Equation :

Exercise: Find the equation that pass through the given points. ,

a. P(4,8) and Q(0,-3)

b. R(1,0) and S(5,8)

d) Given : x-intercept and y-intercept : (a,0) and (0,b)

x + y=1
a b

x-intercept y-intercept

Example 6:
Find the straight line equation that intercept the x-axis at (3,0) and y-
axis at (0,4)

Equation :

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Exercise: Find the straight line equation that has

i) x-intercept = 1 and y-intercept = -3

2

3.4 Sketching the graph of linear function

The graph of a linear function is in a form of a straight line. Thus, we

need only determine two different points on graph in order to sketch it.
To make it easier, we could find the y-intercept and the x-intercept.

Steps:
1. Find the y-intercept (0,c) : replace x=0 to the equation to find the
y coordinate (c).
2. Find the x-intercept (b,0) : replace y=0 to the equation to find the
x coordinate(b).
3. Draw the x and y-axis.
4. Tick the points (x and y-intercept) and draw a line that connects
the two point.
5. Label the graph.

Example:
Sketch the graph of 2 x + 3 y + 6 = 0

x
(-3,0)

(0,-2)

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Exercise:

Sketch the graph for

1. y = 4x − 6
2. y =1
3. x = −5
4. x + 2y −3 = 0

3.5 Parallel Lines and Perpendicular Lines

Suppose that we have two straight lines : L1 and L2
L1 : y = m1x + a
L2 : y = m2x + b , therefore

a) Two straight lines L1 and L2 are parallel if L1 and L2 have the same
slope, m1 = m2 .

m1 = m2

y
L1 with m1 slope

L2 with m2 slope

b) Two straight lines L1 and L2 are intersect if L1 and L2 have different

slope. And, the two lines with slopes m1 and m2 are perpendicular to
each other if and only if

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m1 x m2 = -1

Moreover, a horizontal line and a vertical line are perpendicular to

each other.

y
L1 with m1 slope

L2 with m2 slope

90o

Example 7:

Determine whether the two lines given are parallel or not.

a) y = 2x + 4 and y = -2x + 4
b) 2y = 16x + 8 and y = 8x
c) 4y = -3x + 24 and 3y = -4x + 2

Example 8:
Determine whether the two lines given are perpendicular or not.
a) y = 2x + 4 and y = - x + 8
2
b) 2y = -8x + 3 and 4y = 8x + 9
c) 3y = 9x + 1 and y = -x
3

Example 9:

Find the straight line equation that pass through (1,2) and paralle to the
y =2x + 3 line.

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Example 10:

Find the straight line that pass through (-3, 4) and perpendicualr to the
y = 3x – 5 line.

Example 11:
Find the straight line equation that pass through (4, -5) and
perpendicular to the
y = - x + 7 line
4

3.6 Intersection point of two lines

• The intersection point is the point where two or more lines met.
• In determining the intersection point of straight line, there are 3
possibilities:

a) 2 or more straight line intersect (either perpendicularly or not) at ONE

point
y

L2

intersection
L1
X
Eg : the y = 2x line and y = -2x line

REMEMBER: two straight lines with different slope will intersect at

ONE point!!

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b) 2 or more straight line DO NOT intersect to each other – Parallel

If two lines have the same slope(m1 = m2) – then the two lines are
parallel. Therefore, this two lines will not intersect each other.
y
L1

L2

x
Example : y = 2x + 4 line and y = 2x line will not intersect each other

c) 2 or more lines are identical

- therefore each point on the lines are the intersect points.

x

L1 and L2

y
Example : y = 2x + 4 line and 3y = 6x + 12 line

Determining the intersect point of two straight lines

We can find the intersection point between two straight lines by solving
both equation simultaneously. There are two ways of doing so;
- Substitution Method
- Elimination Method
Otherwise we can also use the methods we have learnt in chapter one
(using Inverse matrix or Cramer’s Rule)

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Example 12:
Substitution Method
Find the intercept points of the given lines :
y = 2x + 4 and 2y = x + 5

Example 13:

Elimination Method:
Find the intercept points of the given lines:
3y = 4x + 7 dan 9y = 6x – 15

* p/s: Otherwise, we also can solve this system of equations using method learnt in
Chapter 1. We can use either inverse method or Cramer’s Rule. Let’s try to apply
the method and we should obtain the same answer.

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3.7 Applications of Linear Function

• In this chapter we will be introduce to two function that takes the
linear form: the demand and supply function.
• In economy, normally the y-axis will take the value of the price(p)
and the x-axis will take the value of the quantity(q) or volume of
production.

a) Demand function:
• Describe the customers’ behaviors towards the demand for a
commodity.
• Whenever the price (p) for a commodity is high, the demanded
units or quantity (q) will be less.
• This shows that the price and the quantity demanded have a
negative relation – demand function has a negative slope.
p

b (a,b)

a q
At the price of $ b per unit, the demanded quantity is at a unit

b) Supply function :
• For supply function, whenever the price (p) for a commodity is high,
the quantity of supply (q) will increase too.
• This shows that the price and the quantity have a positive relation –
supply function has a positive slope.
p

(c,d)
d

q
c
At the price of $ d per unit, the quantity of supply at c unit

ATTENTION: For this course, the demand and supply function will only be
considered in the first quarter of the plane.

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There are also situations where the demand and supply function is in a
form of horizontal line (fixed price) or vertical line (fixed quantity).

c) Case 1 : Fixed price

• The price for a commodity is fixed no matter how many units is
demanded/supplied.
• Example 1 :

• Example 2 :

q
b c

d) Case 2 : Fixed Quantity

• The price for a commodity is varied for the same amount or quantity
demanded/supplied.

200

140

a q
• Example 1:

• Example 2:

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Example 14:
When the price of a watch is set to RM100, none of it can be sold.
However, if it is free, 50 of its were demanded. Determine the demand
function?

Example 15:
Every year, 50 generators are bought by TNB no matter how much it
costs. Determine the demand function.

Example 16:
When the price of a camera is set to RM25, there are no camera in the
stock (to be sold). If the price is set to RM40, 20 units of camera can be
sold. Find the supply function.

Example 17:

Based on the agreement between Telekom Malaysia and FTM, RM500

need to be paid per month by FTM no matter how many calls are
made and the distance of the calls. Find the supply function.

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e) Equilibrium :
• When the demand and supply of a product are drawn on the same
coordinate plane, the point (m, n) where both functions intersect is
call the point of equilibrium.
• The price ( n ), called the price of equilibrium, is the price at which
consumers will purchase a number of products (m) that producers is
willing to supply (and sells at the same price). In short, m is called the
quantity of equilibrium.
• Attention : in this course we only consider the equilibrium which lies
in the first quarter of the plane.
p

Equilibrium (m,n) Supply

Demand

q
m

Example 18:
Find the equilibrium point for the given demand and supply function
y = 10 – 2x
y = 3x + 1
2

Example 19:

Find the equilibrium point for the given demand and supply function
y = 5 – 3x
y = 4x + 12

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3.8 Total Cost, Revenue, Profit / Loss and Break-Event Point(BEP)

a. Total Cost:
• Total icost is the amount invested in order to come out with products
or services.
• There are two types of cost:
- Fixed Cost : The sum of all costs that are independent of the level of
production. Eg: rent, insurance. This cost must be paid
whether or not output is produced.
- Variable Cost : The sum of all costs that are dependent on the level
of output. Eg: labors, materials
• Total Cost - the sum of variable cost and fixed cost

Total Cost = Fixed Cost + Variable Cost

b. Total Revenue :
• Total revenue is the money that the manufacturer receives (gross) for
selling the outputs.
• Therefore, the total revenue:

Total Revenue = Price per unit x Quantity sold

c. Profit / Loss :
• Profit is the nett income obtained by selling the outputs.
• Profit is a measure of difference between Total Cost and Total
Revenue.
• Profit is obtain if the Total Revenue is greater than the Total Cost.
Meanwhile Loss happens when the Total Cost is greater than Total
Revenue.

Profit / Loss = Total Revenue – Total Cost

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d. Break-Event point (BEP) :

• Break-event point is the point where the Total Cost and Total
Revenue are intersected. In this case, no profit or loss is obtain.
• Therefore, at the BEP ,

Profit / Loss = 0

Total Cost = Total Revenue

Example 19:
Assume that the total cost to produce 10 units of a product is RM40,
and total cost to produce 20 units is RM70. If the total cost (TC) have a
linear relation with the output (q), get the
a. Function that define TC as a linear function of q

b. Total Cost to produce 35 unit of the products.

Example 20:

A company sells a product at the price RM45 per unit. The varaible cost
for each unit of the product is RM33 and the fixed cost is RM450,000.

a) Find the break-event quantity?

b) How many unit of the product should be sells in order to gain

profit at least RM150,000?

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