break-even point

Break-even analysis
point at which
the revenue (or
income) and the
cost of production
(or expenses)
In Topic 4B, straight-line graphs were drawn to model both production cost and revenue.
are equal; it can
If we combine graphs for cost and revenue for the same business, we can find the be identified
break-even point. This is the point at which the graphs intersect and revenue equals cost. as the point of
Sales exceeding the break-even number result in a profit for the business, and sales below the intersection of
the combined
break-even number result in a loss.
graphs of cost
This section uses simultaneous linear equations to look at break-even points, and profits and and revenue
losses.

1.4.4 Break-even point

• The break-even point is the point at Revenue > costs (profit)
which income or revenue equals the cost $
Revenue
of production for a business. Revenue
is money earned through sales. Costs of
production include costs of materials,
Costs > revenue (loss)
Costs and revenue ($)

labour, plant and equipment.

Costs
• The aim of most businesses is to make a
profit, which is the difference between
revenue and costs. If revenue is greater Break-even point
than costs, a profit is made. If revenue
is less than costs, a loss is made. If both
revenue and costs are equal, neither a profit
or a loss is made. The point where this
occurs is the break-even point.
• To find the break-even point, the n
equations for cost and revenue are solved
simultaneously.

Profit = Revenue − Costs.

• The diagram shows the graphs of a cost function and a revenue function, drawn on the same set of axes.
The point of intersection of the two lines represents the point at which costs and revenue are equal, that
is, the break-even point. To the left of the break-even point, the cost line is above the revenue line. This
means that the costs are higher than the revenue and will result in a loss. To the right of the break-even
point, the cost line is below the revenue line. This means that costs are lower than the revenue and will
result in a profit.
 INTERSECTING GRAPHS

The work in the previous section would enable you to sketch straight line graphs that model both
expenses and income. By combining the graphs for expenses and income for the same business the
break even point can be found.

The break even point is where the graphs intersect, that is, where expenses equal income.

Sales exceeding the break even number result in a profit for the business.
We begin this section with a review of simultaneous equations and then look for break even points
and profits.
When two non-parallel straight lines are drawn on the same set of axes, their point of intersection
is the solution of both equations simultaneously.

Break-even analysis
The break-even point is reached when costs or expenses and income are equal. There is no profit
or loss at the break-even point. For example, if the break-even point for a business is 100 items per
month, the business will make a loss if it sells fewer than 100 items each month; if it sells more than
100 items per month, it will make a profit. A profit (or loss) is calculated by subtracting the costs
from the income (Profit = Income – Costs). Income is a linear function of the form I = mx, where
x is the number of items sold and m is the selling price of each item. Cost is a linear function of the
form C = mx + c, where x is the number of items sold, m is the cost price per item manufactured
and c is the fixed costs of production.

BREAK-EVEN ANALYSIS

Break-even point occurs when costs equal income.

Profit = Income − Costs
Income: I = mx
Costs: C = mx + c

Break-even point
The break-even point is reached when costs or expenses and income are equal. There is no
profit or loss at the break-even point. For example, if the break-even point for a business is
100 items per month, the business will make a loss if it sells fewer than 100 items each month;
if it sells more than 100 items per month, it will make a profit. A profit (or loss) is calculated
by subtracting the costs from the income (Profit = Income - Costs). Income is a linear
function of the form I = mx, where x is the number of items sold and m is the selling price of
each item. Cost is a linear function of the form C = mx + b, where x is the number of items
sold, m is the cost price per item manufactured and b is the fixed costs of production.

Break-even analysis
Break-even point occurs when costs equals income.
Profit = Income - Costs
Income - I = mx
Costs - C = mx + b
Applying simultaneous equations
Simultaneous equations can be used to solve problems involving linear modelling.

Jeanette is comparing the plans of two telephone companies providing national calls.
OzExpress One has a monthly access fee of $14 and charges $1.30 per call, while Optel Easy
has a monthly access fee of $25 and charges $0.80 per call. The costs, $C, of these plans can
be represented by the following formulas, where n is the number of calls made per month:
OzExpress One: C = 1.3n + 14 Optel Easy: C = 0.8n + 25
a Graph both formulas on the same axes, for values of n from 0 to 50.

b If Jeanette makes around 18 national calls per month, which is the cheaper plan for her?
c For what number of calls per month do both plans charge the same cost?
d To what type of caller would you recommend:
i the OzExpress One plan? ii the Optel Easy plan?
a Monthly costs of two telephone plans

C = 1.3n + 14
OzExpress One
80

75

70
C = 0.8n + 25
Optel Easy
65

60

55

50

45
Cost of plan, $C

40

35

30

25

20

15

10

0
5 10 15 20 25 30 35 40 45 50
Number of calls, n

b When n = 18, OzExpress One Plan is cheaper (marked by the red dotted line on the
graph).
c 22 calls (n = 22 where the two lines We can check this by substituting n = 22 into both
formulas:
intersect, marked by the green dotted OzExpress One C = 1.3(22) + 14 = 42.6 Cost = $42.60
line on the graph). Optel Easy C = 0.8(22) + 25 = 42.6 Cost = $42.60

d i OzExpress One is cheaper for callers who make fewer than 22 calls per month.
ii Optel Easy is cheaper for callers who make more than 22 calls per month.
a Use the graph of production costs and income to Daily production costs and income
determine the number of items that must to be sold 6 Income
to break even.
b How much profit or loss is made when:

($’000)
4 Costs
i 100 items are sold?
ii 1000 items are sold? 2
c How many items need to be sold for the company
to make a: 0
200 400 600 800 1000 1200
i $1000 profit? ii $1000 loss? Number of items
d Find the:
i initial daily production costs of the company
ii production cost of each item iii selling price of each item.

Solve Think Apply

a 800 items To break even, income has to equal The break-even point
production costs. This happens where (income = costs) occurs
the lines intersect. The lines intersect where the lines for income
where the number of items = 800. and costs intersect.
b i Cost = $2250 When the number of items = 100, the Income > costs where the
Income = $500 line representing costs is above the income line is above the costs
Loss = $2250 − $500 line representing income, indicating line. Income < costs where
= $1750 costs > income. Hence, a loss is the income line is below the
made. The gap between the lines costs line. The gap between
when n = 100 is $1750. This is the the two lines is the profit or
amount of loss. (loss).
ii Cost = $4500 When number of items = 1000, the
Income = $5000 line for income is above the line for
Profit = $5000 − $4500 costs, indicating income > costs.
= $500 Hence, a profit is made. The gap
between the lines when n = 1000 is
$500. This is the amount of profit.
c i Profit = $1000 when A profit occurs when the income line
cost = $5000 and is above the costs line. This is when
income = $6000 n > 800. When n = 1200 the gap
Number of items = 1200 between the lines is $1000.
ii Loss = $1000 when A loss occurs when the income line is
cost = $3000 and below the costs line. This is when
income = $2000 n < 800. When n = 400 the gap
Number of items = 400 between the lines is $1000.
d i Initial daily production Find the costs when n = 0. The initial daily production
cost = $2000 costs are the fixed costs
necessary to set up production
before any items are
produced. This is found on
the graph where n = 0.
 Holly’s Hot Dogs makes and sells hot dogs. There is a Cost and revenue
fixed cost per day of $150 and each hot dog costs $1.20 Cost
400
to produce. The hot dogs are sold for $4 each. Revenue
The graphs of the production cost and the revenue made

Amount ($)
300
from selling hot dogs are drawn on the same set of axes.
a How many hot dogs must be sold to break even? 200
b What is the revenue at the break-even point?
c Find the profit made when 90 hot dogs are sold. 100

0
20 40 60 80 100 120
Number of hot dogs (n)

Solve Think Apply

a Approximately 54 hot To break even, the revenue has to equal The break-even point occurs
dogs must be sold to the production cost. Read the value where the lines for revenue
break even. for n at the point of intersection of the and cost intersect.
two lines.
Note: in this case we need to estimate
the value.
b At the break-even point, Estimate the value for the revenue from Read the value for the
revenue is about $215. the vertical axis (amount in dollars) revenue at the point of
when n ≈ 54. intersection of the two lines.
c When n = 90, Read the values from the vertical axis Find the values for the
revenue = $360 for the revenue line and the cost line revenue and cost by reading
cost = $260 when n = 90. Subtract the cost from the across to the vertical axis
Profit = revenue − cost revenue to find the profit. from each line for the given
= 360 − 260 number of hot dogs.
= $100
 The Majestic Muffin Shop has a fixed cost of $320 per day and a variable production cost of $2 per muffin.
The selling price of each muffin is $6. The maximum daily production is 120 muffins.
a Write an equation for the cost, $C, of producing n muffins.
b Graph the linear equation for the production cost.
c Write an equation for the revenue, $R, for the number of muffins sold, n. Draw the straight line for the
revenue equation on the same set of axes as the cost equation in part b.
d Find the point of intersection.
e How many muffins must be sold to break even?
f What is the break-even revenue?
g On the graph drawn for parts b and c, shade the loss zone and the profit zone.

Solve Think Apply

a The cost equation is C = 2n + 320. The fixed cost is $320.
The variable cost is 2n since
the cost per muffin (and the
gradient) is 2.
b Cost and revenue Draw the graph using
graphing technology,
800 R = 6n or the gradient (2) and
y-intercept (320) method,
600 or by completing a table of
Amount ($)
The vertical
intercept is the
fixed cost. The
gradient relates to
the variable cost.
The maximum
number of muffins
is 120 so this is the
largest value for n.

C = 2n + 320 values and plotting the points.

400
n 0 40 80 120
200 C 320 400 480 560

0
20 40 60 80 100 120
Number of muffins (n)

c The revenue equation is R = 6n. Draw the graph using There is no

The graph is drawn on the same set of axes as graphing technology, or the fixed cost, so the
C = 2n + 320 in part b. gradient (6) and y-intercept equation has no
(0) method, or by completing constant value.
a table of values and plotting Both C and R are
the points on the same set values in dollars
of axes. and so can both
be represented
n 0 40 80 120
on the vertical
R 0 240 480 720
axis, labelled as
‘Amount ($)’.
d The point of intersection has the coordinates Find the values at the point The break-even
(80, 480). where the lines intersect. point is when
revenue equals cost.
This is the point of
intersection of the
two lines.
 Solve Think Apply
e 80 muffins must be sold to break even. Read the value for n for the
point of intersection of the
two lines.
f The break-even revenue is $480. Read the amount (C or R)
in dollars for the point of
intersection of the two lines.
g Cost and revenue For the loss zone, shade the The loss zone is
zone between the two lines the zone between
800 R = 6n to the left of the break-even the two lines where
Profit
zone point to indicate where the the revenue line is
600
Amount ($)

revenue is less than the cost below the cost line.

C = 2n + 320
400 Break-even for making n items. The profit zone is
point
Loss For the profit zone, shade the the zone between
200 zone zone between the two lines the two lines where
to the right of the break-even the revenue line is
0
20 40 60 80 100 120 point to indicate where the above the cost line.
Number of muffins (n) revenue is more than the cost
for making n items.

1 As a fundraising activity, a school hires a cinema to show the premiere of a movie. The cost of hiring
the cinema is $500. People are then charged $10 to attend the movie.
a Write a function for the profit or loss made on the movie in terms of the number of people attending.
b Graph the function.
c Use the graph to calculate the number of people who must attend the movie for the school to
break even.
d A rival cinema offers to waive the hire fee but the school will receive only $5 per person
attending. On the same axes graph the function P = 5n.
e The school chose to pay the $500 and receive $10 per person. How many people must attend the
premiere to make this the better of the two options?

1 a Let P = profit (or loss) in $’s c Break-even occurs when income = expenditure, that is when
n = number of people P=0
Profit = Income − expenditure From the table (or the graph), when P = 0, n = 50
∴ P = mx + b, where m = 10, b = −500 ∴ 50 people must attend the movie for the school to break
∴ P = 10n − 500 even.
b d P = 5n
n 0 50 100 150 200 250 n 0 50 100 150 200 250
P −500 0 500 1000 1500 2000 P 0 250 500 750 1000 1250

e More than 100 people.

8 Medirank, a health insurance company, charges
$860 per year (for a single person), and requires
customers to pay the first $100 of any hospital visit.
HAB, on the other hand, charges an annual fee of $560
and requires its members to pay the first $150 of any
hospital visit. Determine the number of hospital visits
in a year for which the cost of health services is the
same whichever company insures you.
8 Medirank Annual Fee (b) = $860
Initial cost per visit (m) = $100
HAB Annual Fee (b) = $560
Initial cost per visit (m) = $150
Express both sets of information in linear equation form,
using y = mx + b
Medirank equation C = 100v + 860
HAB equation C = 150v + 560
The point of intersection for both equations will show when
both costs are the same.
Find the point of intersection by solving the two simultaneous
equations

C = 100v + 860 (1)

C = 150v + 560 (2)
Substitute the expression 100 v + 860 for C from equation (1)
into equation (2)
100v + 860 = 150v + 560
100v − 150v = 560 − 860
−50v = −300
v=6
Thus, the costs will be the same for both companies if there
are 6 visits per year.

9 Nifty is a car hire firm that charges insurance of $135,

and $50 per day car hire.
A competitor, Savus, simply charges $65 per day and
offers ‘free’ insurance. You are planning a holiday and
would prefer to use Savus. Under what conditions
(days hired) could you justify this choice.

9 Nifty Insurance (b) = $135

Cost of hire per day (m) = $50
Savus Insurance (b) = $0
Cost of hire per day (m) = $65
The point of intersection for both equations will show when
both costs are the same.
Find the point of intersection by solving the two simultaneous
equations
Nifty C = 50d + 135 (1)
Savus C = 65d (2)
Substitute the expression 65d for C from equation (2) into
equation (1)
65d = 50d + 135
65d − 50d = 135
15d = 135
d =9
The costs would be the same for both companies if there were
9 visits per year.
Savus would be cheaper if there were less than 9 visits
11 Medirank, a health insurance company, charges $860 per year (for a single person), and requires
customers to pay the first $100 of any hospital visit. HAB, on the other hand, charges an annual fee
of $560 and requires its members to pay the first $150 of any hospital visit. Determine the number of
hospital visits in a year for which the cost of health services is the same for either company.

11 $860  100v  $560  150v

860  560  150v  100v
300  50v
300
v 
50
v 6
6 visits

12 Nifty is a car hire firm that charges insurance of $135, and $50 per day car hire. A competitor, Savus,
simply charges $65 per day and offers ‘free’ insurance. You are planning a holiday and would prefer to
use Savus. Under what conditions (days hired) could you justify this choice?

12 135  50d  65d

135  65d  50d
135  15d
135
d 
15
d 9
Savus would be cheaper for under 9 days hire.
5 Andrew needs to purchase a new washing machine.
a A brand new washing machine will cost $1000, and running costs will be approximately 20c
per wash. Express this as a linear function.

b Alternatively, Andrew could purchase a second-hand washing machine for $200, but
running costs will be about $1.00 per wash. Express this as a linear function.

c Graph both linear functions on the same pair of axes.

d By finding the point of intersection, find out after how many washes does it become more
economical to purchase the new machine.

5 a Let C = cost
w = number of washes
Given: Purchase price = $1000
20¢ per wash = $0.2
It is a linear function in the form
of y = mx + b, where m = 0.2
and b = 1000
P = 0.2w + 1000
b P = mw + b, where m = 1 and
b = 200
∴ P = w + 200

c Take P = 0.2w + 1000

When w = 0, P = 1000;
Point 1: (0, 1000)
When w = 500, P = 1100; Point 2: (500, 1100)
Take P = w + 200
When w = 0, P = 200; Point 1: (0, 200)
When w = 500, P = 700; Point 2: (500, 700)
Alternatively use the graphics calculator to sketch the
two functions.

d Intersection occurs when 0.2w + 1000 = w + 200

∴ 1000 − 200 = w − 0.2w
800 = 0.8w
∴ w = 1000
After 1000 washes, it is more feasible to buy a new
machine as the running cost of the second-hand machine
becomes more expensive than the new machine.
 The cost of producing shoes in Asia is given by the equation C = 2000 + 15n, where n is the
number of pairs of shoes produced per day. The cost of producing shoes in Australia is
given by the equation C = 1000 + 20n.
a On the same pair of axes, graph the cost equations for producing shoes in Asia and
Australia.
b When is it more cost efficient to produce the shoes in Asia?

THINK WRITE
a 1 Draw a table of values for each cost a C = 2000 + 15n
equation. n 0 100 200
C 2000 3500 5000
C = 1000 + 20n
n 0 100 200
C 1000 3000 5000

2 Plot a pair of points generated by C

C = 1000 + 20n
each cost equation. 10 000

3 Join each with a straight line 8000

C = 2000 + 15n
labelling each with its equation. 6000
4000
2000
0 n
0
0
0
0
0
00
20
40
60
80
10

b It will be more efficient to produce the
shoes in Asia after the point of
intersection.
b If more than 200 pairs of shoes are produced
per day, it will be cheaper to produce the
shoes in Asia. This is because if n > 200 the
value of C is less, if the shoes are produced
in Asia.

From this we can see that the intersection occurs xat= 200 and y = 5000. Interpreting this
result in terms of the question shows us that when 200 pairs of shoes are produced the cost
will be $5000 in either Australia or Asia. From that point on it will be cheaper to produce the
shoes in Asia.
The Magnificent Muffin Shop has fixed costs of
$320 per day and a variable production cost of
$2 per muffin. The selling price of each muffin is
$6. The maximum daily production is 120 muffins.
a Write an equation for the cost of $C of
producing n muffins.
b Graph this straight line.
c Write an equation for the income, $I, for the
number of muffins sold, n. Draw the straight
line on the same axes as for part a.
d Find the point of intersection.
e How many muffins must be sold to break
even?
f What is the break-even income?

Solve Think Apply

a C = 2n + 320 The fixed cost is $320. The gradient is the
The cost per muffin and the variable cost. The
gradient is 2. intercept is the
fixed cost.
b Cost and income Complete a table of values and The maximum
plot the points. number of muffins
800 I = 6n is 120 so this is
n 0 40 80 120
Profit the largest value
600 zone C 320 400 480 560 for n.
Cost ($)

C = 2n + 320 Break-even
400 point
Loss
200 zone

0
20 40 60 80 100 120
Number of muffins (n)

Solve Think Apply

c The equation is I = 6n. The graph is The gradient is 6. There are no fixed
drawn on same axis as C = 2n + 320 Complete a table of values and cost. Both C and I
(above). plot the points on the same axes. are values in dollars
n 0 40 80 120 and so can both be
the vertical axis.
I 0 240 480 720

d The point of intersection is (80, 480). Find the values at the point where The break-even point
the lines intersect. is when income
e 80 muffins must be sold. n is number of muffins. equals expenses.

f The break-even income is $480. C and I are values in dollars.

1.4.4 Break-even point
Santo sells shirts for $25. The revenue, $R, from selling n shirts
is R = 25n, and the cost, $C, to produce n shirts is C = 2200 + 3n.
a. Determine the break-even point for Santo shirts.
b. Interpret the break-even point.
c. Find the profit or loss if Santo sells:
i. 75 shirts
ii. 250 shirts.

THINK WRITE

a. 1. Write the two equations in terms of x and y. Revenue: y = 25x

Cost: y = 2200 + 3x
x = number of shirts, n
y = amount in dollars
2. Graph the two equations and find the point of y
3000
intersection using methods previously
(100, 2500)
explained.
y = 2200 + 3x
2000 (0, 2200)

y = 25x
1000

0 (0, 0) x
–50 50 100

Answer the question.

3. The break-even point is (100, 2500).
b. Interpret the break-even point. Santo would need to sell 100 shirts to break
even, that is, to make neither a profit nor
a loss.
Revenue, R = $2500
Cost, C = $2500
c. i. 1. Substitute n = 75 into the revenue and cost R = 25 × 75
equations. = $1875
C = 2200 + 3 × 75
= $2425
2. Determine the profit or loss: R − C. R − C = 1875 – 2425
= −550
3.Answer the question. 75 shirts give a loss of $550.
ii. 1. Substitute n = 250 into the revenue and cost R = 25 × 250
equations. = $6250
C = 2200 + 3 × 250
= $2950

2. Determine the profit or loss: R − C. R − C = 6250 − 2950

= 3300
3. Answer the question. 250 shirts give a profit of $3300.
Zaina buys and sells books. Income received by selling a book is
calculated using the formula I = 16n. Costs associated in selling
a book are calculated using the formula C = 8n + 24.
a What is the income when 6 books are sold?
b What is the costs when 6 books are sold?
c Draw the graph of I = 16n and C = 8n + 24 on same
number plane.
d Use the graph to determine the number of books needed to
be sold for the costs to equal the income.

1 Substitute 6 for n into the formula for a I = 16n = 16 × 6 = 96

income I = 16n. ∴ Income for six books is $96
2 Substitute 6 for n into the formula for b C = 8n + 24 = 8 × 6 + 24 = $72
costs C = 8n + 24. ∴ Costs for six books is $72
3 Draw a number plane. c
4 Use the gradient–intercept form to determine 100
Income
80
Dollars ($)
the gradient and vertical intercept for each
60
line. Gradient is the coefficient of n. Costs
40
Vertical intercept is the constant term.
20
5 Sketch I = 16n using the vertical intercept
of 0 and gradient of 16. 1 2 3 4 5 6
6 Sketch C = 8n + 24 using the vertical intercept Books
of 24 and gradient of 8.
7 Find the point of intersection of the two d Income is equal to costs when n = 3
lines (3, 48). ∴ 3 books
 Company Costs and Income on Daily Production
6

4 Production
'000 Dollars

Costs
3

2 Income

0
0 200 400 600 800 1000 1200
Number of Items

a Use the graph to determine the number of items which need to be sold to
break even (i.e., Profit = Expenses).
b How much profit or loss is made when
i 100 items are sold ii 1000 items are sold?
c How many items were sold for the company to make a
i $1000 profit ii $1000 loss?
d Find the
i initial daily production costs of the company
ii production cost of each item
iii selling price of each item.

a 800 items (the Cost and Income lines intersect at this point).

b i For 100 items: Cost = $2200

Income = $500
Since Production Cost > Income there is $1700 loss.
ii For 1000 items: Cost = $4450
Income = $5000
Production Cost < Income ) $550 profit.
c i For profits, we look at items > 800 (breakeven).
At 1200 items, cost = $5000
Income = $6000 ) $1000 profit.
ii For loss, we look at the number of items < 800:
At 400 items, the cost = $3000
Income = $2000 ) $1000 loss.
d i When number of items equals zero, cost = $2000.
ii Production Cost of 200 items = $2500
Initial Production Cost = $2000
200 items cost $500 ) 1 item costs $2:50 to produce.
iii 200 items sell for $1000
) 1 item sells for 1000
200 = $5:
11 The cost of running an old refrigerator is $1.20 per day. This can be represented by the
equation C = 1.2d. A new refrigerator will cost $900 but the cost to run will be only
30c per day. This can be represented by the equation C = 900 + 0.3d.
a Copy and complete the table below.

d 0 1000 2000
C (old)
C (new)

b Graph both linear functions on the same pair of axes.

c Find the point of intersection of the two graphs; hence, state after how many days it will
become more economical to purchase a new refrigerator.

11 a
b
d 0 1000 2000
C (old) 0 1200 2400
C (new) 900 1200 1500
Cold = 1.2d
When d = 0, C =0
When d = 1000, C = 1.2 × 1000 = 1200
When d = 1000, C = 1.2 × 2000 = 2400
Cnew = 900 + 0.3d
When d = 0, C = 900
When d = 1000, C = 900 + 0.3 × 1000 = 1200 c On the graph; the point of intersection = (1000, 2000)
When d = 2000, C = 900 + 0.3 × 2000 = 1500 After 1000 days, the cost of running the old refrigerator
will be higher than running a new one. Hence, it will be
more economical to buy a new one after 1000 days.

12 The cost, in dollars, of producing calculators can be given by the equation

C = 15n + 1500, where n is the number of calculators produced. When selling the calculators
the receipts can be given by the equation C = 20n.
a Graph both linear functions on the same pair of axes.
b Determine the number of calculators that need to be sold in order for the manufacturer to break even.

12 a Cost of calculators: b Break-even occurs, when cost = receipts at the point of

C = 15n + 1500 intersection (300, 6000).
When n = 0, C = 1500; Point 1: (0, 1500) Hence, they need to sell 300 calculators to break-even.
When n = 500, C = 15 × 500 + 1500 (any other n
value could be used.)
C = 9000; Point 2: (500, 9000)
Receipts of calculators:
C = 20n
When n = 0, C = 0; Point 1: (0, 0)
When n = 300, C = 6000; Point 2: (300, 6000)
 Interpreting the point of intersection of two graphs

G
Grace bbuys andd sells
l wallets. Income received 160
140 Income
by selling a wallet is calculated using the formula
I = 30n. Costs associated with selling a wallet are 120

Dollars ($)
100 Costs
calculated using the formula C = 20n + 30.
80
a Use the graph to determine the number
60
of wallets which need to be sold to break even.
40
b How much profit or loss is made when four
20
wallets are sold?
1 2 3 4 5
Wallets

1 Break-even point occurs when the income a Number of wallets = 3

equals the costs.
2 Read the point of intersection of the two
linear graphs (when n = 3).
3 Profit is determined by subtracting the b Profit = Income − cost
costs from the income. = 120 − 110
4 Read from the graph the values of I and C = $10
when n = 4 (I( = 120 and C = 110).
5 Evaluate.
6 Write the answer in words. Profit is $10 for selling 4 wallets.

Grace buys and sells wallets. Income received

160
by selling wallets is calculated using the formula 140 Income
I = 30x. Costs associated with selling wallets are 120 Loss zone
Dollars ($)

calculated using the formula C = 20x + 30. 100 Costs

a Use the graph to determine the number of 80
wallets that Grace needs to sell to break even. 60
b How much profit or loss does she make when 40
four wallets are sold? 20 Profit zone

1 2 3 4 5
Wallets

1 Consider when the break-even point a When the income equals the costs.
occurs.
2 Read the point of intersection of the two Intersection is at (3, 90). So x = 3.
linear graphs. Number of wallets = 3
3 Profit is determined by subtracting the b Profit = Income − Cost
costs from the income.
4 Read from the graph the values of I and C I = 120 and C = 110
when x = 4.
5 Evaluate. = 120 − 110
= $10
6 Write the answer in words. Profit for selling 4 wallets is $10.
Example 12: Break-even analysis

A firm sells its product at $20 per unit. The cost of production ($C) is given by the rule
C = 4x + 48, where x is the number of units produced.
a Find the value of x for which the cost of the production of x units is equal to the income or
revenue received by the firm for selling x units.
b Check your answer algebraically.

1 Set up the income equation and determine
the gradient and vertical intercept.
2 Set up the cost of production equation and
determine the gradient and vertical intercept.
a Let the income or revenue for producing
x units be $I. Formula is:
I = 20x
Gradient is 20, vertical intercept is 0
Cost of production ($C) is given by:
C = 4x + 48
Gradient is 4, vertical intercept is 48

3 Draw a number plane.

4 Use x as the horizontal axis. 200
Income
180
5 Use I and C as the vertical axis.
160 I = 20x
6 Sketch I = 20x using the vertical intercept
140
Dollars ($)

of 0 and gradient of 20.

120
7 Check this line using some valid points such
100 Break-even Costs
as (1, 20). 80 point
8 Sketch C = 4x + 48 using the vertical 60 C = 4x + 48
intercept of 48 and gradient of 4. 40
9 Check this line using some valid points such 20
as (1, 52).
1 2 3 4 5 6 7 8 9 10
Number of units (x)

10 Read the value of x at the point of The point of intersection of the two linear
intersection of the two linear graphs. graphs occurs when x = 3. This is the break-
even point, the value of x for which cost of
production is equal to income.
11 Substitute x = 3 into the formula I = 20x. b Check algebraically.
12 Substitute x = 3 into the formula Income Costs
C = 4x + 48. I = 20x C = 4x + 48
= 20 × 3 = 4 × 3 + 48
= 60    = 60
13 Check that I is equal to C. Income equals costs, so answer to a is
­correct.
3 The graph on the right shows the cost of producing cartons of soft drinks and the income

received from their sale.

a Use the graph to determine the number of 50
cartons that need to be sold to break even.
b How much profit or loss is made when five 40
cartons are sold?

Dollars ($)
c How much profit or loss is made when two 30 Costs
cartons are sold?
Income
d What is the initial cost? 20
e What is the gradient of the straight line that
represents income? 10
f What is the vertical intercept of the straight line
that represents income? 1 2 3 4 5
g Write an equation to describe the relationship Cartons
between income and the number of cartons.
h What is the gradient of the straight line that represents costs?
i What is the vertical intercept of the straight line that represents costs?
j Write an equation to describe the relationship between costs and the number of cartons.

3a 4 cartons to break even

b Profit of $5
c Loss of $10
d Initial costs are $20
e Gradient is 10
f Vertical intercept is $0
g I = 10n
h Gradient is 5
i Vertical intercept is $20
j C = 5n + 20
 Ally is organising an outdoor morning tea to raise money for charity. The cost of hiring a
marquee is $116 and the catering is $6.20 per person. To cover these costs, Ally is charging
each person $12. The cost and revenue functions are represented by the formulas:
Cost: C = 6.2n + 116
Revenue: R = 12n
where C and R are in dollars and n is the number of people.
a Graph both functions on the same set of axes for n = 0 to 50.
b Use the graph to find the cost (to the nearest $10) of the morning tea for:
i 12 people ii 30 people.
c Why would it be unwise to run a morning tea for 12 people?
d For what value of n does the cost equal the revenue?
e Why is the point of intersection of the two lines called the ‘break-even point’?
What happens for values of n above this point?

a Cost and revenue graphs for a morning tea

550
n

Profit zone
12

500
=
R
e,

450
nu

6
ve

11
Re

400 n+
6.2
C=
350 st,
Co
Amount ($)

300

250
(20, 240)
200

150

100
Loss zone
50

0
0 5 10 15 20 25 30 35 40 45 50
No. of guests, n

b From the graph:

i $190 ii $300.

c The revenue would be less than the cost, so Ally would lose money.

d n = 20 (C = R = $240)

e When n = 20, the revenue covers the cost exactly, so Ally breaks even. For values of
n above 20, the revenue is more than the cost so Ally would make a profit.
4 The graph on the right shows the cost of
200
producing bottles of wine and the income Income
received from their sale.
150
a Use the graph to determine the number of

Dollars ($)
Costs
bottles that need to be sold to break even. 100
b Write an equation to describe the relationship
between income and the number of bottles. 50
c Write an equation to describe the relationship
between costs and the number of bottles.
2 4 6 8 10
Bottles
4a 5 bottles to break even.
b I = 20n
c C = 10n + 50

5 Lara and Anna earn a salary of L and A

respectively.
a Lara earns $10 000 more than Anna. Write an equation to describe this information.
b The total of Lara’s salary and Anna’s salary is $150 000. Write an equation to describe this
information.
c Draw a graph of the above two equations on the same number plane. Use A ($1000) as the
horizontal axis and L($1000) as the vertical axis.
d Use the intersection of the two graphs to find Lara’s and Anna’s salaries.

5a L = A + 10000
b L = −A + 150 000
c
160
Lara’s salary ($1000)

140
120
100
80
60
40
20
0 40 80 120 160
Anna’s salary ($1000)

d Anna’s salary is $70 000 and

Lara’s salary is $80 000
6 An industrial plant produces items whose costs are $250 plus $50 for every item. The plant
receives $75 for every item sold.
a Write an equation to describe the relationship between the:
i costs (C) and number of items (x)
ii income (I) and number of items (x).
b Draw a graph to represent the costs and income for producing the item.
c How many items need to be sold to break even?
d Check your answer to part c algebraically.
.
6a i C = 50x + 250
ii I = 75x

b
1250
Income
1000
Dollars

750 Costs
500
250

0 5 10 15
Number of items

c 10 items need to sold to break

even.
d I = 75x = 75 × 10 = $750
C = 50x + 250 = 50 × 10 + 250
= $750

7 Laura owns a nursery that grows native plants. It costs Laura $4000 per month to cover costs
such as rent, water, electricity and wages. Each plant costs $5 and is sold for $17.50.
a Write an equation to describe the relationship between:
i the costs (C) and the number of plants (x)
ii income (I) and the number of plants (x).
b Draw a graph to represent the costs and income for producing the plants.
c How many plants need to be sold each month to break even?
d Check your answer to part c algebraically.

7a i C = 5x + 4000
ii I = 17.5x

b
6000 Costs
5000
Dollars

4000
Income
3000
2000
1000
0 100 200 300 400
Number of items

c 320 plants need to be sold to

break even.
d I = 17.5x = 17.5 × 320 = $5600
C = 5x + 4000 = 5 × 320 + 4000
= $5600
 WORKED Example 2
A store owner finds that the number of televisions sold each week, N, decreases as the
price, P, increases. This relationship can be given by the rule N = 200 − 0.2P.
a Complete the table below.

P 100 200 500

N

b Graph the relationship between the number of televisions sold and their price.
c How many televisions will be sold if they are priced at $900 each?
d The store can sell only a maximum of 50 televisions each week. At what price should the
televisions be sold?

THINK WRITE

a Substitute the given values of P into the a

equation to find the corresponding P 100 200 500
values of N. N 180 160 100

b 1 Plot the points given by the table. b N

(Note: Only positive values of N and 200
P are needed in this example.) 160
120
80
40
0
0 P
0
0
0
0
00
20
40
60
80
10

2 Join the points with a straight line N

and label the equation. 200
N = 200 – 0.2P
160
120
80
40
0
0 P
0
0
0
0
00
20
40
60
80
10

c Use the graph to find N when P = 900. c When P = 900, N = 20; they will sell
20 televisions at $900 each.

d Use the graph to find P when N = 50. d When N = 50, P = 750; the televisions
should be sold for $750 each.
Example 13
Ally is organising an outdoor morning tea to raise money for charity. The cost of hiring a
marquee is $116 and the catering is $6.20 per person. To cover these costs, Ally is charging
each person $12. The cost and revenue functions are represented by the formulas:
Cost: C = 6.2n + 116
Revenue: R = 12n
where C and R are in dollars and n is the number of people.
a Graph both functions on the same set of axes for n = 0 to 50.
b Use the graph to find the cost (to the nearest $10) of the morning tea for:
i 12 people
ii 30 people
c Why would it be unwise to run a morning tea for 12 people?
d For what value of n does the cost equal the revenue?
e Why is the point of intersection of the two graphs called the ‘break-even’ point? What
happens for values of n above this point?

Solution
a Cost and revenue graphs for a morning tea

550
n
12

500
=
R
e,

450
nu

6
11
ve

n+
Re

400
= 6.2
Cost/revenue ($)

350 st,C
Co
300

250
(20, 240)
200

150

100

50

0
0 5 10 15 20 25 30 35 40 45 50
No. of guests, n

b From the graph:

i $190
ii $300
c The revenue would be less than the cost, so Ally would lose money.
d n = 20 (C = R = $240)
e When n = 20, the revenue covers the cost exactly, so Ally breaks even. For values of
n above 20, the revenue is more than the cost so Ally would make a profit.
 The cost of producing shoes in Asia is given by the equation C = 2000 + 15n, where n is the number
of pairs of shoes produced per day. The cost of producing shoes in Australia is given by the equation
C = 1000 + 20n.
a On the same pair of axes, graph the cost equations for producing shoes in Asia and Australia.
b When is it more cost efficient to produce the shoes in Asia?

Think WriTe

a 1 Draw a table of values for each cost a C = 2000 + 15n

equation. n 0 100 200
C 2000 3500 5000
C = 1000 + 20n
n 0 100 200
C 1000 3000 5000

2 Plot a pair of points generated by each C

C = 1000 + 20n
cost equation. 10 000
3 Join each with a straight line labelling 8000
each with its equation. C = 2000 + 15n
6000
4000
2000
0 n
0
0
0
0
0
00
20
40
60
80
10
b It will be more efficient to produce the shoes in b If more than 200 pairs of shoes are produced
Asia after the point of intersection. per day, it will be cheaper to produce the shoes
in Asia. This is because if n > 200 the value of
C is less, if the shoes are produced in Asia.
From this we can see that the intersection occurs xat= 200 and y = 5000. Interpreting this
result in terms of the question shows us that when 200 pairs of shoes are produced the cost
will be $5000 in either Australia or Asia. From that point on it will be cheaper to produce the
shoes in Asia.

When two linear functions are graphed on the same pair N

of axes, the intersection of the two graphs shows the 200
point where both equations hold true. This can have
160
applications in a practical context. N = 200 – 0.2P
Consider worked example 2, in which the number of 120
televisions sold each week was given by N = 200 − 0.2P. 80
Now consider that the company producing the televisions 40 N = 0.05P
is prepared to produce more if the price is higher. This
0
is given by the rule N = 0.05P. When these two functions 0 P
0
0
0
0
00
20
40
60
80

are graphed on the same pair of axes, we can see that the
10

point of intersection is (800, 40).

The company would want to sell all of the televisions that they produce and similarly
would want to produce enough to meet this demand. This will be done if the televisions
are sold at $800 each, as the company would be prepared to produce 40 per week at
this price, and this would be the number that would be sold.
Graphing linear functions can be used to determine profit, loss or break-even points.
If cost and receipts are graphed, the difference between the y-values at any point will
determine the profit or loss. The point where the graphs intersect will be the break-even
point, where no profit or loss is made.
5 Andrew needs to purchase a new washing machine.
a A brand new washing machine will cost $1000, and running costs will be approximately 20c
per wash. Express this as a linear function.

b Alternatively, Andrew could purchase a second-hand washing machine for $200, but
running costs will be about $1.00 per wash. Express this as a linear function.

c Graph both linear functions on the same pair of axes.

d By finding the point of intersection, find out after how many washes does it become more
economical to purchase the new machine.

5 a Let C = cost
w = number of washes
Given: Purchase price = $1000
20¢ per wash = $0.2
It is a linear function in the form
of y = mx + b, where m = 0.2
and b = 1000
P = 0.2w + 1000
b P = mw + b, where m = 1 and
b = 200
∴ P = w + 200

c Take P = 0.2w + 1000

When w = 0, P = 1000;
Point 1: (0, 1000)
When w = 500, P = 1100; Point 2: (500, 1100)
Take P = w + 200
When w = 0, P = 200; Point 1: (0, 200)
When w = 500, P = 700; Point 2: (500, 700)
Alternatively use the graphics calculator to sketch the
two functions.

d Intersection occurs when 0.2w + 1000 = w + 200

∴ 1000 − 200 = w − 0.2w
800 = 0.8w
∴ w = 1000
After 1000 washes, it is more feasible to buy a new
machine as the running cost of the second-hand machine
becomes more expensive than the new machine.
11 The cost of running an old refrigerator is $1.20 per day. This can be represented by the
equation C = 1.2d. A new refrigerator will cost $900 but the cost to run will be only
30c per day. This can be represented by the equation C = 900 + 0.3d.
a Copy and complete the table below.

d 0 1000 2000
C (old)
C (new)

b Graph both linear functions on the same pair of axes.

c Find the point of intersection of the two graphs; hence, state after how many days it will
become more economical to purchase a new refrigerator.

11 a
b
d 0 1000 2000
C (old) 0 1200 2400
C (new) 900 1200 1500
Cold = 1.2d
When d = 0, C =0
When d = 1000, C = 1.2 × 1000 = 1200
When d = 1000, C = 1.2 × 2000 = 2400
Cnew = 900 + 0.3d
When d = 0, C = 900
When d = 1000, C = 900 + 0.3 × 1000 = 1200 c On the graph; the point of intersection = (1000, 2000)
When d = 2000, C = 900 + 0.3 × 2000 = 1500 After 1000 days, the cost of running the old refrigerator
will be higher than running a new one. Hence, it will be
more economical to buy a new one after 1000 days.

12 The cost, in dollars, of producing calculators can be given by the equation

C = 15n + 1500, where n is the number of calculators produced. When selling the calculators
the receipts can be given by the equation C = 20n.
a Graph both linear functions on the same pair of axes.
b Determine the number of calculators that need to be sold in order for the manufacturer to break even.

12 a Cost of calculators: b Break-even occurs, when cost = receipts at the point of

C = 15n + 1500 intersection (300, 6000).
When n = 0, C = 1500; Point 1: (0, 1500) Hence, they need to sell 300 calculators to break-even.
When n = 500, C = 15 × 500 + 1500 (any other n
value could be used.)
C = 9000; Point 2: (500, 9000)
Receipts of calculators:
C = 20n
When n = 0, C = 0; Point 1: (0, 0)
When n = 300, C = 6000; Point 2: (300, 6000)
 The cost of producing shoes in Asia is given by the equation C = 2000 + 15n, where n is the number
of pairs of shoes produced per day. The cost of producing shoes in Australia is given by the equation
C = 1000 + 20n.
a On the same pair of axes, graph the cost equations for producing shoes in Asia and Australia.
b When is it more cost efficient to produce the shoes in Asia?

Think WriTe

a 1 Draw a table of values for each cost a C = 2000 + 15n

equation. n 0 100 200
C 2000 3500 5000
C = 1000 + 20n
n 0 100 200
C 1000 3000 5000

2 Plot a pair of points generated by each C

C = 1000 + 20n
cost equation. 10 000
3 Join each with a straight line labelling 8000
each with its equation. C = 2000 + 15n
6000
4000
2000
0 n
0
0
0
0
0
00
20
40
60
80
b It will be more efficient to produce the shoes in 10
b If more than 200 pairs of shoes are produced
Asia after the point of intersection. per day, it will be cheaper to produce the shoes
in Asia. This is because if n > 200 the value of
C is less, if the shoes are produced in Asia.
From this we can see that the intersection occurs xat= 200 and y = 5000. Interpreting this
result in terms of the question shows us that when 200 pairs of shoes are produced the cost
will be $5000 in either Australia or Asia. From that point on it will be cheaper to produce the
shoes in Asia.

10 We3 A factory produces two types of computer games: game A and game B.
a The factory can produce a maximum of 120 games per week. This can be represented by
the linear equation A + B = 120. Graph this function.
b Sales research shows that twice as many copies of game A will sell as game B. This can
be represented by the equation 2A = B. On the same pair of axes graph this function.
c Find the point of intersection of the two graphs and make a conclusion about the number
of each game that should be produced by the factory each week.

10 a, b
Take A + B = 120
When A = 0, B = 120; Point 1: (0, 120)
When B = 0, A = 120; Point 2: (120, 0)
Take 2A = B
When A = 0, B = 0; Point 1: (0, 0)
When A = 20, B = 40; Point 2: (20, 40)

c From the graph, the point of intersection is (40, 80).

When the factory produces 40 game A and 80 game B,
they are in agreement with the sales research data. This
is the only time game B will be twice as many copies of
game A.
 EXAMPLE

Company Costs and Income on Daily Production

6

4 Production
'000 Dollars

Costs
3

2 Income

0
0 200 400 600 800 1000 1200
Number of Items

a Use the graph to determine the number of items which need to be sold to
break even (i.e., Profit = Expenses).
b How much profit or loss is made when
i 100 items are sold ii 1000 items are sold?
c How many items were sold for the company to make a
i $1000 profit ii $1000 loss?
d Find the
i initial daily production costs of the company
ii production cost of each item
iii selling price of each item.

a 800 items (the Cost and Income lines intersect at this point).

b i For 100 items: Cost = $2200

Income = $500
Since Production Cost > Income there is $1700 loss.
ii For 1000 items: Cost = $4450
Income = $5000
Production Cost < Income ) $550 profit.
c i For profits, we look at items > 800 (breakeven).
At 1200 items, cost = $5000
Income = $6000 ) $1000 profit.
ii For loss, we look at the number of items < 800:
At 400 items, the cost = $3000
Income = $2000 ) $1000 loss.
d i When number of items equals zero, cost = $2000.
ii Production Cost of 200 items = $2500
Initial Production Cost = $2000
200 items cost $500 ) 1 item costs $2:50 to produce.
iii 200 items sell for $1000
) 1 item sells for 1000
200 = $5:
6 a Steve earns twice as much money each week as Theo. This can be represented by the linear function
s = 2t, where s represents the amount of money Steve earns and t represents the amount of money
Theo earns. Draw the graph of this function.
b The total of Theo and Steve’s wages is $750. This can be represented by the linear function
t + s = 750. Draw this function on the same set of axes.
c Use the intersection of these graphs to find Theo’s wage and Steve’s wage.

6 a, b

c Steve  $500, Theo  $250

7 The sum of Tanya’s English and Maths marks is 135.

a Write a linear function that represents this information and sketch the function.
b Tanya’s English mark was 21 marks higher than her Maths mark. Write a linear function to
represent this piece of information and draw the graph on the same set of axes.
c Use the intersection of your two graphs to find Tanya’s mark in both English and Maths.
7 a, b E  m  135
E  21  m

c English  78, Maths  57

Fur ther development

8 A computer firm, SuperComputers Inc., offers a back-up plan covering the ongoing service and
troubleshooting of its systems after sale. The cost of signing up for the service plan is $215, and
there is an hourly rate of $65 for the serviceperson’s time. Purchasers not signing up for the plan are
charged a flat rate of $150 per hour for service. Would it be advisable to sign up for the service plan
if you expected to need 3 hours of service assistance during the life of a computer purchased from
SuperComputers Inc?

8 Service plan cost  $215  65 h

3 hours of assistance
 $215  65  3
 $215  $195
 $410
No plan cost  150  h
3 hours of assistance  $150  3
 $450
It would be advisable to sign up with the service plan if you
expect to need 3 hours of service assistance.
 3 We13 At the grocery store, apples cost $5 per kg and bananas b
cost $2 per kg. Rhonda spends $30 on 9 kg of fruit. This can be 15
14 5a + 2b = 30
represented by the linear functions at right, where a represents the 13
number of apples and b represents the number of bananas. 12
11
Use the graph to find the mass of apples and bananas that 10
Rhonda bought. 9
8
7
6
5
4
3 a+b=9
2
1
0
0 1 2 3 4 5 6 7 8 9 10 a

3 4 kg of apples and 5 kg of bananas

5 A rectangle has a length of x and a width of y.

a The perimeter of the rectangle is 22 cm. This can be represented by the linear function
2x + 2y = 22. Graph this function.
b The length of the rectangle is 5 cm longer than the width. This can be represented by the linear
function y = x − 5. On the same set of axes graph this function.
c Use the intersection of the two graphs to determine the length and width of the rectangle.

5 a, b

e Xt e N D eD
c Length  8 cm, width  3 cm re S p O N Se

1 As a fundraising activity, a school hires a cinema to show the premiere of a movie. The cost of hiring
the cinema is $500. People are then charged $10 to attend the movie.
a Write a function for the profit or loss made on the movie in terms of the number of people attending.
b Graph the function.
c Use the graph to calculate the number of people who must attend the movie for the school to
break even.
d A rival cinema offers to waive the hire fee but the school will receive only $5 per person
attending. On the same axes graph the function P = 5n.
e The school chose to pay the $500 and receive $10 per person. How many people must attend the
premiere to make this the better of the two options?

1 a Let P = profit (or loss) in $’s c Break-even occurs when income = expenditure, that is when
n = number of people P=0
Profit = Income − expenditure From the table (or the graph), when P = 0, n = 50
∴ P = mx + b, where m = 10, b = −500 ∴ 50 people must attend the movie for the school to break
∴ P = 10n − 500 even.
b d P = 5n
n 0 50 100 150 200 250 n 0 50 100 150 200 250
P −500 0 500 1000 1500 2000 P 0 250 500 750 1000 1250

e More than 100 people.

In many cases linear models and simultaneous equations can be used to solve problems.

‘Rent-a-Chef’ provides food cooked and served by a qualified chef at

parties. The company charges $120 as a booking fee, and an additional
$30 per hour.
Another company, ‘Greased lightning’, provides fast food served by two
students at a cost of $65 per hour, with no booking fee. Under what
conditions would it be cheaper to hire ‘Greased lightning’?

thINK WrIte

1 Define convenient pronumerals. Let C = Cost (total) in dollars and t = time in hours.
2 Write an equation for the cost of Rent-a-Chef C = 120 + 30t [1]
hiring both organisations. Greased lightning C = 65t [2]
3 Draw the graph for the cost of both c
companies. 500

400
C = 65t

300
C = 120 + 30t

200

100

0
0 1 2 3 4 5 6 7 t

4 From the graph read off the point of It is cheaper to hire Greased lightning for period of up to
intersection which will show when 3.4 hours.
both costs are the same.

Car A is travelling at a constant speed of 60 km/h. Car B leaves 2 hours later and travels at a
constant speed of 90 km/h. This is represented by the linear model below.
How far from the starting point does car B overtake car A?
B
Distance (km)

600
500 A
400
300
200
100
0
0 1 2 3 4 5 6 7 8 9 10
Time (h)

Think WriTe

1 Look for the point of intersection of the two graphs. Point of intersection (6, 360).
2 Read the distance of this point on the y-axis. Car B overtakes car A 360 km from the
starting point.
 Simultaneous equations
WORKED EXAMPLE 1
Mobile phone charges
Bianca is deciding which mobile phone plan to use. She is
comparing the Plan 30 and Plan 60 rates. Plan 30 is a minimum
Plan 30
of $30 per month with $5 of free calls. Calls cost 24 cents/30 s. 120
Plan 60

Cost ($)
Plan 60 is a minimum of $60 per month with $40 of free calls.
80
Calls cost 19 cents/30 s. The graph shows these plans.
a How many minutes of calls can be made on Plan 30 before 40
paying more than the minimum?
0
b How many minutes of calls can be made on Plan 60 before 50 100 150 200
paying more than the minimum? Time (min)
c After how many minutes of calls does Plan 60 become cheaper? How is this shown on the graph?

WORKED EXAMPLE 1 CONTINUED

Solve Think Apply

a Approximately 10 min.
b Approximately 105 min.
c Approximately 75 min.
The line representing Plan 30 remains
horizontal, meaning the cost remains
unchanged at $30, for about 10 min.
The line representing Plan 60 remains
horizontal, meaning the cost remains
unchanged at $60, for about 105 min.
The lines intersect after about 75 min of
calls. This is when the cost of the two
plans is the same. When the number of
minutes of calls exceeds 75, the line
representing plan $60 is below the line
representing Plan 30. This indicates that
the cost of using Plan 60 is less than the
cost of using Plan 30.
The length of the horizontal
segment of each line
indicates the length of
time that the cost remains
unchanged. A rising line
indicates increasing cost. At
the point of intersection of
the two lines the cost of each
plan is the same. When one
line is below another the cost
under that plan is lower than
the cost of the other plan.

Solve Think Apply

d ii Production cost/item Using the points (0, 2000) and (800, 4000) The production cost
= gradient of costs line the vertical rise = 2000 and per item is the cost to
2000 horizontal run = 800. produce the item after
= _____ = 2.5
800 Or production costs of 200 items = $2500. the initial set-up costs.
Production cost is $2.50 Initial set-up costs = $2000 This is the gradient of
per item. ∴ 200 items cost $500 to produce the costs line.
so 1 item costs $2.50 to produce.
iii Selling price/item Using the points (0, 0) and (200, 1000) The selling price per
= gradient of income line the vertical rise = 1000 and item is the gradient of
1000 the horizontal run = 200. the income line.
= _____ = 5
200 Or income from 200 items = $1000.
Selling price is $5 per Selling price of 1 item = $1000 ÷ 200 = $5.
item.
4 We12 A computer firm, SuperComputers Inc., offers a back-up plan covering the ongoing service
and troubleshooting of its systems after sale. The cost of signing up for the service plan is $125, and
there is an hourly rate of $65 for the serviceperson’s time. Purchasers not signing up for the plan are
charged a flat rate of $150 per hour for service. Would it be advisable to sign up for the service plan
if you expected to need 3 hours of service assistance during the life of a computer purchased from
SuperComputers Inc?

4 Cost of three hours service for those signing up for the service
plan:
Cost = $125 + ($65 × 3)
= $320
Cost of three hours service for those not signing up for the
service plan:
Cost = $150 × 3
= $450
Yes, it would be advisable to sign up for the service plan.

5 A telephone company, Opus, offers calls to Great Britain for a connection fee of $14, and thereafter
$1 per minute. Its rival, Belecom, offers calls for $2 per minute (no connection fee) to the same
country.
a Compare the cost of a 10 minute call to Great Britain using each company.
b At what point would it be cheaper to use Opus?

5 a Opus Company: Connection fee (b) = $14

Cost per minute (m) = $1
Express in linear equation form: y = mx + b
C = 1x + 14
Cost of a 10 minute call i.e. when x = 10
C = (1 × 10) + 14
= $24
Belecom Company: Connection fee (b) = $ 0
Cost per minute (m) = $2
Express in linear equation form: y = mx + b
C = 2x + 0
Cost of a 10 minute call C = (2 × 10)
= $20
Thus, Opus Company Cost = $24
Belecom Company Cost = $20

b The point of intersection for both equations will show

when both costs are the same.
Solve the two simultaneous equations:
C = x + 14 (1)
C = 2x (2)
Substitute the expression x + 14 for C from equation (1)
into equation (2)
x + 14 = 2x
x – 2x = –14
–x = –14
x = 14
Substitute x = 14 into equation (2) to solve for C
C = 2 × 14
= 28
The point of intersection is (14, 28)
Thus, it can be seen that it is cheaper to use Opus after 14
minutes
6 It costs you $6 to get into a taxi (the ‘flagfall’), and $1.50 per kilometre if you use ‘Pink Cabs’, while
NoTop taxis charge $8 flagfall, and $1.20 per kilometre.
a How much would it cost with each company to travel 15 km in one of its cabs?
b When would it cost the same to use both companies?

6 a Pink Cabs: Flagfall (b) = $6

Cost per kilometre (m) = $1.50
Express in linear form: y = mx + b
C = 1.5x + 6
Cost for a 15 km trip: C = (1.5 × 15) + 6
C = 22.5 + 6
C = $28.50
No Top Taxis: Flagfall (b) = $8
Cost per kilometre (m) = $1.20
Express in linear form: y = mx + b
C = 1.2 × + 8
Cost for a 15 km trip: C = (1.2 × 15) + 8
= $26
Thus, Pink Cabs cost = $28.50
No Top Taxis Cost = $26
b The point of intersection for both equations will show
when both costs are the same.
Find the point of intersection by solving the two
simultaneous equations
C = 1.5x + 6 (1)
C = 1.2x + 8 (2)
Substitute the expression 1.5x + 6 for C from equation (1)
into equation (2)
1.5x + 6 = 1.2x + 8
1.5x – 1.2x = 8 – 6
0.3x = 2
2
x=
.3
x = 6.67
Thus, the costs are both the same when the distance is
6.67 kilometres
7 Two amusement parks show the following information for school age tourists in a promotional
brochure.

$8.00 entry
$2.50 per ride
$12 entry
$1.50 per ride

After how many rides does an excursion to Fun World

become the cheaper option for the same number of rides?

7 Water world:
Cw = 2.5r + 8 C = cost in ($)
Fun World: r = no. of rides
CF = 1.5r + 12

Water world and Fun World will cost the same if he goes
on 4 rides.
After that Fun World is cheaper.
 Further development
10 At the candy store Katrina buys 10 chocolates and a
8 sherbets for $4.30 while Vanessa buys 6 chocolates
and 9 sherbets for $4.05. By drawing appropriate
graphs find the cost of each sweet.

10 Let x = the cost of each chocolate

y = the cost of each sherbet
Katrina 10x + 8y = 430
Vanessa 6x + 9y = 405
Find the x and y intercepts for both Katrina and Vanessa
Katrina:
10 x + 8 y = 430
When
x = 0,
8 y = 430
y = 53.75
(0,53.75)
When
y=0
10 x = 430
x = 43
(43,0)
Vanessa
6 x + 9 y = 405
When
x = 0,
9 y = 405
y = 45
(0, 45)
When
y=0
6 x = 405
x = 67.5
(67.5,0)
Draw the two graphs, using these intercepts

The point of intersection is (15, 35)

x = cost of chocolate 15c
y = cost of sherbert 35c
Thus, it can be seen that the cost of each chocolate is 15c
the cost of each sherbert is 35c
Simultaneous equations can be used to solve a number of practical problems.
Consider the problem below. G
A class has 30 students. There are twice as many girls 30 G = 2B
as boys. How many boys and girls are in this class? 27
We solve this problem by modelling two linear 24
21 (10, 20)
relationships. 18
15
We can say that G = 30 − B and G = 2B, where G 12
represents the number of girls and B represents the 9
6 G = 30 − B
number of boys. 3
The solution to the problem will be the point of 0
intersection of these linear relationships. 0 3 6 9 12 15 18 21 24 27 30 B
The point of intersection on these lines is (10, 20). Therefore the solution to this problem is 10 boys
and 20 girls.

Car A is travelling at a constant speed of 60 km/h. Car B leaves 2 hours later and travels at a
constant speed of 90 km/h. This is represented by the linear model below.
How far from the starting point does car B overtake car A?
B
Distance (km)

600
500 A
400
300
200
100
0
0 1 2 3 4 5 6 7 8 9 10
Time (h)

Think WriTe

1 Look for the point of intersection of the two graphs. Point of intersection (6, 360).
2 Read the distance of this point on the y-axis. Car B overtakes car A 360 km from the
starting point.

5 A rectangle has a length of x and a width of y.

a The perimeter of the rectangle is 22 cm. This can be represented by the linear function
2x + 2y = 22. Graph this function.
b The length of the rectangle is 5 cm longer than the width. This can be represented by the linear
function y = x − 5. On the same set of axes graph this function.
c Use the intersection of the two graphs to determine the length and width of the rectangle.

5 a, b

c Length  8 cm, width  3 cm

6 a Steve earns twice as much money each week as Theo. This can be represented by the linear function
s = 2t, where s represents the amount of money Steve earns and t represents the amount of money
Theo earns. Draw the graph of this function.
b The total of Theo and Steve’s wages is $750. This can be represented by the linear function
t + s = 750. Draw this function on the same set of axes.
c Use the intersection of these graphs to find Theo’s wage and Steve’s wage.

6 a, b

c Steve  $500, Theo  $250

Fur ther development

8 A computer firm, SuperComputers Inc., offers a back-up plan covering the ongoing service and
troubleshooting of its systems after sale. The cost of signing up for the service plan is $215, and
there is an hourly rate of $65 for the serviceperson’s time. Purchasers not signing up for the plan are
charged a flat rate of $150 per hour for service. Would it be advisable to sign up for the service plan
if you expected to need 3 hours of service assistance during the life of a computer purchased from
SuperComputers Inc?

8 Service plan cost  $215  65 h

3 hours of assistance
 $215  65  3
 $215  $195
 $410
No plan cost  150  h
3 hours of assistance  $150  3
 $450
It would be advisable to sign up with the service plan if you
expect to need 3 hours of service assistance.

3 We13 At the grocery store, apples cost $5 per kg and bananas b

cost $2 per kg. Rhonda spends $30 on 9 kg of fruit. This can be 15
14 5a + 2b = 30
represented by the linear functions at right, where a represents the 13
number of apples and b represents the number of bananas. 12
11
Use the graph to find the mass of apples and bananas that 10
Rhonda bought. 9
8
7
6
5
4
3 a+b=9
2
1
0
0 1 2 3 4 5 6 7 8 9 10 a

3 4 kg of apples and 5 kg of bananas

 9 A telephone company, Opus, offers calls to Biddelonia for a connection fee of $14, and $1 per minute
thereafter. Its rival, Belecom, offers calls for $2 per minute (no connection fee) to the same country.
a Compare the cost of a 10 minute call to Biddelonia using each company.
b At what point would it be cheaper to use Opus?

9 a Opus: $14  $1  m
where m  number of minutes
Belecom: $2  m
For 10 minutes Opus changes $14  10  $24
b For 10 minutes Belecom changes $2  10  $20
14  m  2m
14  m
After 14 minutes it would be cheaper to use Opus.

10 It costs you $6 to get into a taxi (the ‘flagfall’), and $1.50 per kilometre if you use PinkCabs, while
NoTop taxis charge $8 flagfall, and $1.20 per kilometre.
a How much would it cost with each company to travel 15 km in one of its cabs?
b When would it cost the same to use both companies?

10 PinkCabs: $6  1.50n
NoTops: $8  1.20n
where n  number of kilometres
a PinkCabs: C $6  1.5  15
 $6  $22.50
 $28.50
NoTops: C $8  1.2  15
 $8  $18
 $26
b 6  1.5n  8  1.2n
1.5n  1.2n  8  6
0.3n  2
2
n 
0.3
n  6.7
It would cost the same to use both companies at 6.7 km.

9 Calculate the cost of a carton of milk and a loaf of bread given that 3 cartons of milk and
2 loaves of bread costs $9.95 while 2 cartons of milk and a loaf of bread costs $5.85.

9 Let x = cost of a carton of milk

Let y = cost of a loaf of bread
Form two equations
3x + 2y = 9.95 (1)
2x + y = 5.85 (2)
Multiply equation (2) by 2
4x + 2y = 11.70 (3)
3x + 2y = 9.95 (2)
Subtract equation (2) from equation (3) in order to eliminate y
x = 1.75
Substitute x = 1.75 into equation (1)
3(1.75) + 2y = 9.95
5.25 + 2y = 9.95
2y = 9.95 – 5.25
2y = 4.70
y = 2.35
Thus, a carton of milk costs $1.75
A loaf of bread costs $2.35
 Simultaneous equations
Consider the problem below. G
A class has 30 students. There are 30 G = 2B
twice as many girls as boys. How 27
24
many boys and girls are in this class? 21 (10, 20)
We solve this problem by modelling 18
15
two linear relationships. 12
We can say that G = 30 − B and 9
6 G = 30 – B
G = 2B, where G represents the 3
number of girls and B represents the 0
0 3 6 9 12 15 18 21 24 27 30 B
number of boys.
The solution to the problem will be the point of intersection of these linear relationships.
The point of intersection on these lines is (10, 20). Therefore the solution to this
problem is 10 boys and 20 girls.

Car A is travelling at a constant speed of 60 km/h. Car B

leaves 2 hours later and travels at a constant speed of
90 km/h. This is represented by the linear model below.
How far from the starting point does car B overtake car A?
Distance (km)

600 B
500 A
400
300
200
100
0
0 1 2 3 4 5 6 7 8 9 10
Time (h)

THINK WRITE
1 Look for the point of intersection of the Point of intersection (6, 360).
two graphs.
2 Read the distance of this point on the Car B overtakes car A 360 km from the starting
y-axis. point.

remember
The point of intersection of two linear models will give the point where both conditions hold true.
 Simultaneous equations
1 At the grocery store, apples cost $5 per kg and bananas b
cost $2 per kg. Rhonda spends $30 on 9 kg of fruit. 15
14 5a + 2b = 30
This can be represented by the linear functions at right, 13
where a represents the number of apples and b represents 12
11
the number of bananas. 10
Use the graph to find the mass of apples and bananas that 9
8
Rhonda bought. 7
6
5
4
3 a+b=9
2
1
0
0 1 2 3 4 5 6 7 8 9 10 a

1 4 kg of apples and 5 kg of bananas

2 a On the same set of axes as question 1, sketch the graphs of y = 2x + 1 and y = 7 − x.

b Write down the point of intersection of the two graphs.
2 a

b Intersection point = (2, 5)

3 A rectangle has a length of x and a width of y.

a The perimeter of the rectangle is 22 cm. This can be represented by the linear
function 2x + 2y = 22. Graph this function.
b The length of the rectangle is 5 cm longer than the width. This can be represented by the linear function
y = x − 5. On the same set of axes graph this function.
c Use the intersection of the two graphs to determine the length and width of the rectangle.

3 a, b

c Length = 8 cm, width = 3 cm

 4 a Steve earns twice as much money each week as Theo. This can be represented by the
linear function s = 2t, where s represents the amount of money Steve earns and t rep-
resents the amount of money Theo earns. Draw the graph of this function.
b The total of Theo and Steve’s wages is $750. This can be represented by the linear
function t + s = 750. Draw this function on the same set of axes.
c Use the intersection of these graphs to find Theo’s wage and Steve’s wage.

4 a, b

c Steve = $500, Theo = $250

5 The sum of Tanya’s English and Maths marks is 135.

a Write a linear function that represents this information and sketch the function.
b Tanya’s English mark was 21 marks higher than her Maths mark. Write a linear function to represent
this piece of information and draw the graph on the same set of axes.
c Use the intersection of your two graphs to find Tanya’s mark in both English and Maths.

5 a, b E + m = 135
E − 21 = m

c English = 78, Maths = 57

Mobile phone charges

120
Plan 30
100
cost (dollars)

Bianca is deciding which mobile phone

plan to use. She is comparing the Plan 80
Plan 50
30 and Plan 60 rates. Plan 30 has mini- 60
mum $30 per month with $5 of free calls. 40
Calls cost 24 cents/30 seconds. Plan 60 20
has minimum $60 per month with $40 of 0
free calls. Calls cost 19 cents/30 seconds. 0 50 100 150 200
Minutes of call
Here is the graph showing these plans.
a How many minutes of calls can be made on Plan 30 before paying more than the mini-
mum?
b How many minutes of calls can be made on Plan 60 before paying more than the mini-
mum?
c After how many minutes of calls does Plan 60 become cheaper? How is this shown on
the graph?

a The graph is horizontal for about about 10 minutes. It then starts to rise. This is when
the minimum is exceeded.
b about 105 minutes
c After about 75 minutes the two graphs intersect. This is where the charges are equal.
After that Plan 30 is more expensive. The Plan 60 line is then always below the Plan 30
line. So, Plan 60 is cheaper if there are more than 75 minutes of calls per month.
14 An employee of a telecommunications company sells mobile-phone plans. She is offered two
different salary packages by her employer:
Plan A: $400 per week plus $25 for each plan sold
Plan B: $150 per week plus $45 for each plan sold.

a Copy and complete the following table.

Number of plans sold Salary package A Salary package B
5
10
15
20
b On the same set of axes sketch the graph of salary (S) versus number of plans (n) for both
Package A and Package B.
c How many plans need to be sold before salary package B is the better package?

14 a Use the y = mx + b to write the rule for both plans. c Read the intersection point on the graph. Approximately,
Plan A: at n = 13
Let y = S (salary) OR solve the two equations simultaneously.
x = n (number of plans) That is: At the intersection point.
Given: m = 25 (gradient) = cost per plan. Salary (Plan A) = Salary (Plan B)
b = 400 (fixed cost) 25n + 400 = 45n + 150
∴ S = 25n + 400
Plan B: 400 − 150 = 45n − 25n
m = 45, b = 150 250 = 20n
∴ S = 45n + 150 ∴ 12.5 = n
Use the above rules to fill the table. Since, one cannot have a number of plans in decimals,
Plan A: S = 25n + 400 take it as 13 approximately.
When n = 5, S = 25 × 5 + 400 = 525 13 plans to be sold before Plan B becomes the better plan.
n = 10, S = 25 × 10 + 400 = 650
n = 15, S = 25 × 15 + 400 = 775
n = 20, S = 25 × 20 + 400 = 900
Plan B: S = 45n + 150
When n = 5, S = 45 × 5 + 150 = 375
n = 10, S = 45 × 10 + 150 = 600
n = 15, S = 45 × 15 + 150 = 825
n = 20, S = 45 × 20 + 150 = 1050
∴
Number of plans
sold Plan A Plan B
5 525 375
10 650 600
15 775 825
20 900 1050

b
 WORKED Example 2
A store owner finds that the number of televisions sold each week, N, decreases as the
price, P, increases. This relationship can be given by the rule N = 200 − 0.2P.
a Complete the table below.

P 100 200 500

N

b Graph the relationship between the number of televisions sold and their price.
c How many televisions will be sold if they are priced at $900 each?
d The store can sell only a maximum of 50 televisions each week. At what price should the
televisions be sold?

THINK WRITE

a Substitute the given values of P into the a

equation to find the corresponding P 100 200 500
values of N. N 180 160 100

b 1 Plot the points given by the table. b N

(Note: Only positive values of N and 200
P are needed in this example.) 160
120
80
40
0
0 P
0
0
0
0
00
20
40
60
80
10

2 Join the points with a straight line N

and label the equation. 200
N = 200 – 0.2P
160
120
80
40
0
0 P
0
0
0
0
00
20
40
60
80
10

c Use the graph to find N when P = 900. c When P = 900, N = 20; they will sell
20 televisions at $900 each.

d Use the graph to find P when N = 50. d When N = 50, P = 750; the televisions
should be sold for $750 each.
When two linear functions are graphed on the same pair N
of axes, the intersection of the two graphs shows the 200
point where both equations hold true. This can have
160
applications in a practical context. N = 200 – 0.2P
Consider worked example 2, in which the number of 120
televisions sold each week was given by N = 200 − 0.2P. 80
Now consider that the company producing the televisions 40 N = 0.05P
is prepared to produce more if the price is higher. This
0
is given by the rule N = 0.05P. When these two functions 0 P

0
0
0
0
00
20
40
60
80
are graphed on the same pair of axes, we can see that the

10
point of intersection is (800, 40).

The company would want to sell all of the televisions that they produce and similarly
would want to produce enough to meet this demand. This will be done if the televisions
are sold at $800 each, as the company would be prepared to produce 40 per week at
this price, and this would be the number that would be sold.
Graphing linear functions can be used to determine profit, loss or break-even points.
If cost and receipts are graphed, the difference between the y-values at any point will
determine the profit or loss. The point where the graphs intersect will be the break-even
point, where no profit or loss is made.

10 We3 A factory produces two types of computer games: game A and game B.
a The factory can produce a maximum of 120 games per week. This can be represented by
the linear equation A + B = 120. Graph this function.
b Sales research shows that twice as many copies of game A will sell as game B. This can
be represented by the equation 2A = B. On the same pair of axes graph this function.
c Find the point of intersection of the two graphs and make a conclusion about the number
of each game that should be produced by the factory each week.

10 a, b
Take A + B = 120
When A = 0, B = 120; Point 1: (0, 120)
When B = 0, A = 120; Point 2: (120, 0)
Take 2A = B
When A = 0, B = 0; Point 1: (0, 0)
When A = 20, B = 40; Point 2: (20, 40)

c From the graph, the point of intersection is (40, 80).

When the factory produces 40 game A and 80 game B,
they are in agreement with the sales research data. This
is the only time game B will be twice as many copies of
game A.
 Further development
10 At the candy store Katrina buys 10 chocolates and a
8 sherbets for $4.30 while Vanessa buys 6 chocolates
and 9 sherbets for $4.05. By drawing appropriate
graphs find the cost of each sweet.

10 Let x = the cost of each chocolate

y = the cost of each sherbet
Katrina 10x + 8y = 430
Vanessa 6x + 9y = 405
Find the x and y intercepts for both Katrina and Vanessa
Katrina:
10 x + 8 y = 430
When
x = 0,
8 y = 430
y = 53.75
(0,53.75)
When
y=0
10 x = 430
x = 43
(43,0)
Vanessa
6 x + 9 y = 405
When
x = 0,
9 y = 405
y = 45
(0, 45)
When
y=0
6 x = 405
x = 67.5
(67.5,0)
Draw the two graphs, using these intercepts

The point of intersection is (15, 35)

x = cost of chocolate 15c
y = cost of sherbert 35c
Thus, it can be seen that the cost of each chocolate is 15c
the cost of each sherbert is 35c
 11 On a farm there are chickens and cattle.

In total there are 57 animals and 196 feet. How many chickens are there?

11 Let x = number of chickens

y = number of cattle
Using the information provided, write two linear equations:
x + y = 57 (1)
2x + 4y = 196 (2)
Solve for x and y
Multiply equation (1) by 2
2x + 2y = 114 (3)
2x + 4y = 196 (2)
Subtract equation (3) from equation (2) in order to eliminate x
2y = 82
y = 41
Substitute y = 41 into equation (1) in order to find x
x + y = 57
x + 41 = 57
x = 57 − 41
x = 16
Thus, there were 16 chickens and 41 cattles

12 From a sports store a school orders 16 cricket balls and 24 basketballs for $826.80.

A second school paid $633 for 12 basketballs and 32 cricket balls. Find the cost of each item.

12 Let x = cost of each cricket ball

Let y = cost of each basketball
Using the information provided, write two linear equations:
First School: 16x + 24y = 826.80 (1)
Second School 32x + 12y = 633 (2)
Solve for x and y
Multiply equation (1) by 2
32x + 48y = 1653.60 (3)
32x + 12y = 633 (2)
Subtract equation (2) from equation (3) in order to eliminate x
36y = 1020.60
y = 28.35
Substitute y = 28.35 into equation 1
16 x + 24 y = 826.80
16 x + (24 × 28.35) = 826.80
16 x + 680.40 = 826.80
16 x = 826.80 − 680.40
16 x = 146.40
x = 9.15
Thus, each basketball cost $28.35
each cricket ball cost $9.15
 A sports store supplies 24 basketballs and 16 cricket
balls to one school for $264, and supplies 12 basketballs and 32
cricket balls to another school for $204. If the delivery is free, write
a pair of simultaneous linear equations to represent this information.

THINK WRITE

1. Identify the two variables or unknowns. Cost of 1 basketball

Cost of 1 cricket ball
2. Define the variables. Let b = cost of 1 basketball in dollars.
Let c = cost of 1 cricket ball in dollars.
3. Write an equation representing that 24 basketballs 24b + 16c = 264
and 16 cricket balls cost $264.
4. Write an equation representing that 12 basketballs 12b + 32c = 204
and 32 cricket balls cost $204.

How much did the sports store in Worked example 13 charge for a basketball and a cricket ball?

THINK WRITE

1. Define the variables using x and y so the Let x = cost of 1 basketball in dollars.
equations can be graphed. Let y = cost of 1 cricket ball in dollars.

2. Rewrite the equation as in terms of x and y. 24x + 16y = 264

12x + 32y = 204
3. Graph the two equations using methods y
previously explained and find the point of 8
intersection. 24x + 16y = 264
6

4 12x + 32y = 204

(9, 3)

0 x
–2 2 4 6 8 10 12
–2

4. State the point of intersection. The point of intersection is (9, 3).

5. Answer the question. A basketball costs $9 and a cricket ball
costs $3.
Example 10: Solving problems using intersecting graphs 5E

Isabella’s Mathematics mark exceeded her English

mark by 15. She scored a total of 145 for both tests.
Find Isabella’s marks in each subject by plotting
intersecting graphs.

SO L U T I ON :
1 Express the relationship between the Mathematics Let the Mathematics mark be m.
and the English mark as a linear equation. Let the English mark be e.
m = e + 15
2 Use the gradient–intercept form to determine Gradient is 1,
the gradient and vertical intercept for the line. vertical intercept is 15.
Gradient is the coefficient of e. Vertical intercept
is the constant term.
3 Express the total of the two marks as a linear m + e = 145
equation.
4 Use the gradient–intercept form to determine m = −e + 145
the gradient and vertical intercept for the line. Gradient is −1,
vertical intercept is 145.
5 Draw a number plane. m
6 Sketch m = e + 15 using the vertical intercept 140
of 15 and gradient of 1. 120
7 Sketch m = −e + 145 using the vertical 100
intercept of 145 and a gradient of −1. 80
8 The simultaneous solution is the point of 60
intersection. 40
20
e
10 20 30 40 50 60 70 80 90 100
9 Find the point of intersection of the two lines. Intersection is (65, 80) so e = 65 and
m = 80
10 Write the solution in words using the context Isabella scored 65 in English and 80 in
of the question. Mathematics.
 Exercise 5E LEVEL 1

1 Matilda and Nathan have wages m and n respectively.

a Matilda earns $100 more than Nathan. Write an equation to describe this information.
b The total of Matilda’s wages and Nathan’s wages is $1200. Write an equation to describe
this information.
c Draw a graph of the two equations on the same number plane. Use n as the horizontal axis
and m as the vertical axis.
d Use the intersection of the two graphs to find Matilda’s and Nathan’s wages.

1a m = n + 100
b m + n = 1200
c m

1200
1000
800
600
400
200
n
200 600 1000 1400

d Matilda’s wage is $650 and

Nathan’s wage is $550.

2 Let one number be represented by a and the other number by b.

a The sum of the two numbers is 42. Write an equation to describe this information.
b The difference of the two numbers is 6. Write an equation to describe this information.
c Draw a graph of the two equations on the same number plane. Use a as the horizontal axis
and b as the vertical axis.
d Use the intersection of the two graphs to find the two numbers.

2a a + b = 42
ba−b=6
c b
50
40
30
20
10
a
10 20 30 40 50
d The numbers are 18 and 24
 3 Let one number be represented by p and another number by q.
a The sum of the two numbers is 15. Write an equation to describe this information.
b One of the numbers is twice the other number. Write an equation to describe this
information.
c Draw a graph of the two equations on the same number plane. Use p as the horizontal axis
and q as the vertical axis.
d Use the intersection of the two graphs to find the two numbers.
3a p + q = 15
b p = 2q
c q
20
15
10
5
p
5 10 15 20
d The numbers are 5 and 10

4 Amy and Nghi work for the same company and their wages are a and b respectively.
a Amy earns $100 more than Nghi. Write an equation to describe this information.
b The total of Amy’s and Nghi’s wages is $1500. Write an equation to describe this
information.
c Draw a graph of the above two equations on the same number plane. Use a as the horizontal
axis and b as the vertical axis.
d Use the intersection of the two graphs to find Amy’s and Nghi’s wages.

4a a = 100 + b
b a + b = 1500
c b
1500

1000

500

a
0
500 1000 1500

d Amy’s wage is $800 and Nghi’s

wage is $700.
6 Let the cost of an apple be a and the cost of a banana be b.
a One apple and one banana cost $1.25. Write an equation (using cents, not dollars) to
describe this information.
b Two apples and three bananas cost $3.25. Write an equation (using cents, not dollars) to
describe this information.
c Draw a graph of the two equations on the same number plane. Use a as the horizontal axis
and b as the vertical axis.
d Use the intersection of the two graphs to find the cost (in cents) of each fruit.

6a a + b = 125
b 2a + 3b = 325
c b

200
180
160
140
120
100
80
60
40
20
a
20 40 60 80 100120140160180190

d An apple costs $0.50 and a

banana costs $0.75

7 Let Zara’s hourly wage rate be a and Ryan’s hourly wage rate be b.
a Zara’s hourly wage rate and Ryan’s hourly wage rate equals $70. Write an equation to
describe this information.
b Twice Zara’s is the same as three times Ryan’s wage rate. Write an equation to describe this
information.
c Draw a graph of the two equations on the same number plane. Use a as the horizontal axis
and b as the vertical axis.

d Use the intersection of the two graphs to find the wage rates.

7a a + b = 70 b 2a = 3b
c b
80
70
60
50
40
30
20
10
a
10 20 30 40 50 60 70 80
d Zara’s wage rate is $42 and
Ryan’s wage rate is $28
 Solving problems using intersecting graphs

Isabella’s Mathematics mark exceeded her

English mark by 15. She scored a total of 145
for both tests. Find Isabella’s marks in each
subject by plotting intersecting graphs.

1 Express the relationship between the Let the Mathematics mark be m.

Mathematics and the English mark as Let the English mark be e.
a linear equation. m = e + 15
2 Use the gradient–intercept form to Gradient is 1,
determine the gradient and vertical vertical intercept is 15.
intercept for each line. Gradient is the m + e = 145
coefficient of e. m = -e + 145
3 Vertical intercept is the constant term. Gradient is -1,
4 Express the total of the two marks as a vertical intercept is 145.
linear equation.
5 Use the gradient–intercept form to
determine the gradient and vertical
intercept for each line.
6 Draw a number plane. m
7 Sketch m = e + 15 using the vertical
140
intercept of 15 and gradient of 1.
120
8 Sketch m = -e + 145 using the
100
vertical intercept of 145 and a 80
gradient of -1. 60
9 The simultaneous solution is the point 40
of intersection. 20
10 Find the point of intersection of the e
two lines (65, 80). 10 20 30 40 50 60 70 80 90 100
e = 65 and m = 80
11 Write the solution in words using the Isabella scored 65 in English and 80 in
context of the question. Mathematics.

5 A factory produces items whose costs are $1000 plus $10 for every item. The factory receives
$60 for every item sold.
a Write an equation to describe the relationship between the:
i costs (C) and number of items (n)
ii income (I) and number of items (n).
b Draw a graph and find the number of items when income equals costs.

5a i C = 1000 + 10n
ii I = 60n