Algebra Application in Business

Algebra applications in business are generally divided into two namely:

1.Application of equations
2.Application of inequality

Application of Equations
Example
1. In the process of making syrup, two types of sweetener are needed, namely real
sugar and artificial sweeteners. Each bottle of syrup that weighs 450 ml requires
two parts original sugar and seven parts artificial sweetener. What volume of sugar
(in ml) and artificial sweetener must be prepared to produce 450ml of syrup?

Answer
Suppose that each part of the original sugar and artificial sweetener is x.
Thus the original sugar = 2x and artificial sweetener 7x. Meanwhile the
ingredients available to produce 450ml of syrup are limited. Therefore make
the equation:
Original Sugar = 2x = 2(50) = 100ml
Sweetener = 7x = 7(50) =350ml
2. A "cheerful" children's clothing manufacturer produces soccer
jerseys at a cost of Rp. 15,000 per unit. In welcoming Jakarta's
anniversary, the producer intends to provide a special discount of
30%. However, after giving the discounted price, the producer
wants a profit of 35%. Determine the selling price that must be set
by the manufacturer (i.e. the selling price before discounting is
given)
Jawab
Selling Price = Cost + Profit Therefore, the selling price
P- (0,30P) = 15.000 + [(0,35)(15.000) listed on the soccer shirt
0,7P = 15.000 + 5.250 before the discount is Rp
28.928,57
0,7P = 20.250

P=28.928,57
3. A "cheerful" children's clothing manufacturer produces soccer jerseys at a cost
of Rp. 15,000 per unit. In welcoming Jakarta's anniversary, the producer
intends to provide a special discount of 30%. Determine the amount of profit
(profit) the company gets?
TR = Total Revenue
Jawab TC = Total Cost
Profit formula = TR-TC. Therefore, the TR value must be greater than the
TC value (TR> TC). It aims to obtain profits. Conversely, if the TR value is
smaller than the TC value (TR <TC), then the company will lose money.

Profit = TR - TC
Profit = (0,3)(15.000) + 15.000 - 15 .000
Profit = 4.500
4. A "cheerful" children's clothing manufacturer produces soccer jerseys at a cost
of Rp. 15,000 per unit. In welcoming Jakarta's birthday, producers want a profit
of 35%. What is the selling price that must be set?

Jawab
Profit = TR - TC
35% = TR - 15 .000
TR = [(0,350)(15.000) + 15 .000
TR = 20.250
Inequality Application
Exp
1. An investor has a fund of Rp 10,000,000 he is confronted with two investment choices,
namely investment A and B. Investment A has a return of 4% per year. Whereas
investment B returns an annual rate of 5.5%. However, investors realize that investment
B has a greater risk than A..
a. If the investor wants a minimum annual return of Rp.480,000, what is the amount
to be invested in A and B?
b. If investors want an annual profit of not less than 5%, what investment must be
allocated for investments A and B?
Exp :
Investasi A = 10.000.000 – x
Investasi B = x
a. Pengembalian Investasi A + Investasi B per tahun minimal 480.000

Oleh karena itu , nilai investasi A = 10.000.000 – 5.333.333 = 4.666.667 dan

investasi B = 5.333.333
b. Pengembalian investasi A + Investasi B per tahun tidak kurang dari 5% per tahun.

Oleh karena itu, nilai investasi A = 10.000.000 – 6.666.667 = 3.333.333 dan

investasi B = 6.666.667
 2. A woven bag craftsman incurs a cost of buying raw materials for each unit of Rp
15,000, while the labor cost for each unit of bag is Rp 10,000, meanwhile, the
fixed cost that he has to spend per year to rent a place and also other supporting
equipment is Rp 4,000. 000 each woven bag product can be sold at Rp 100,000
per unit. If a bag craftsman wants to get a profit of at least IDR 35,000,000 per
year, how many bags must be sold?

Answer :
Profit = Income - Cost
Profit = (a unit price) (number of units sold) So, if the bag craftsman wants
= (100.000) (Q) to get a minimum profit of IDR
Cost = Fixed coat + variabel cost 35,000,000 per year. He must
= 4.000.000 + [(15.000+ 10.000) (Q)] sell his bag no less than 520
= 4.000.000 + 25.000Q units for one year
3. A soft drink manufacturer in cans is faced with two choices, namely making or
buying cans for beverage packaging. If the company makes the packaging can, then it
must invest with a total cost of Rp. 6,000,000 per year and a variable cost per unit of
Rp. 50, whereas if he buys the packaging can from the supplier company, the cost per
unit is Rp. 200. determine the minimum number of products that must be produced so
that the decision to make will be cheaper than the decision to buy..

Jawab The concept of making and buying is actually similar to the concept of fixed costs
and variable costs. In the concept of production, companies must bear fixed costs
and variable costs. Whereas in the concept of buying, the company does not bear
fixed costs only variable costs. Therefore, if it is made in a mathematical
equation, the form will be as follows..
Membuat = 6.000.000 + 50Q
Membeli = 200Q So, if the company needs
more than 40,000 cans per
year, the decision to make
(cans) will be cheaper than
buying (cans)
4. Continuing the example of the previous problem. Prove that it is true that
the decision to make will be cheaper than buying.
Answer

Make = 6.000.000 + 50Q

Buy = 200Q

Note: from the table, it appears that if Q> 40,000, the choice to make (can)
will be cheaper than buying (can). But if the value of Q <40,000, then the
opposite happens. Where making choices will be more expensive than
buying
 Practice
1. A T-shirt manufacturer produces T-shirts that read "I Love Batam" at a cost of
Rp 20,000 per unit. In welcoming Batam's birthday, the producer intends to
provide a special discount of 15%. However, after giving the discounted price,
the producer wants a profit of 25%. Determine the selling price that must be set
by the manufacturer..
a. the sale price before being discounted
b. Prices After being given a discounted price

2. A bakery in the “Batam Enak” brand jar is faced with two choices, namely making
or buying jars for its bread packaging. If the company makes the packaging jars,
then he must invest with a total cost of Rp 15,000,000 per year and a variable cost
per unit of Rp 200, whereas if he buys the packaging jars from the supplier
company, the cost per unit is Rp 500.
b. determine the minimum number of products that must be produced so that the
decision to make will be cheaper than the decision to buy.
c. Prove that it is true that the decision to make will be cheaper than buyingi
That's all
and thank
you