Course: Analytic technique (EMBA)______________________________________________________

Application of 5 type of mathematics in my business activities

Application 1: If a cost price of a shoe is 2,000 BDT and he wants sell this product at 60% gross margin
what will be the retail price of that particular shoe?

Solution:

Let,

X = Retail Price

We know, Cost Price = 2000 BDT &

Expected margin = 60%

So, Margin calculation formula is:

Retail Price (Revenue) – Cost Price

Margin
Retail Price (Revenue)

Now,

X – 2,000
60%
X

=> X - 2000 60
X 100

=> 100 (X -2,000) 60 X

=> 100X – 200,000 60X

=> 100 X – 60 X 200,000

200,000
=> X
40
=> X = 5,000

So, if the product need to sell at 60 % gross margin retail price has to be 5,000 BDT

Application 2: I go to the store and want to buy 1 shoe priced at 2000 BDT; 2 Socks at 60 BDT per Socks,
and 3 belts. Finally altogether I spent 3,620 BDT. So what is each belt cost me?

Solution:
Now two solve this problem I will put this in an algebra equation

Let, 1 Shoe price = X

1 Sock price = Y

1 Belt price = Z

Now the equation will be

X + 2(Y) + 3(Z) = 3,620

=> 2,000 + (2 * 60) + 3(Z) = 3,620

=> 3(Z) = 3,620 – 2000 – 120

=> 3(Z) = 1,500

=> Z = 500

So, each belt cost me 500 BDT.

Application 3: A manufacturing company produces shoe. Onetime fixed costs for a particular Shoe are
500,000 which include costs such as machine, leather cost, strings, adhesive etc. Variable costs
amount to 800 BDT per shoe and include manufacturing, packaging, and distribution costs for each
shoe actually sold to a retailer. The shoe is sold to retail outlets at 1000 each. How many shoe must be
manufactured and sold in order for the company to break even?

Solution:

Let x = number of shoe manufactured and sold.

C = cost of producing X shoe

R = revenue on sales of x shoe

Fixed costs = 500,000

Variable costs = 800 X

C = Fixed costs + variable costs

= 500,000 + 800 X

R = 1000 X

Now, The company breaks even if R = C; that is, if

1000 X = 500,000 + 800 X

1000 X – 800 X = 500,000

200 X = 500,000

x = 2500

The company must make and sell 2500 shoe to break even.

Application 4: Company X wants to open a retail store of 20 feet length and 40 width. To decorate its
floor they have chosen tile which is 2 feet length and 1 feet width. So how many tiles they need to
decorate the entire floor.
Solution:

To find out the number of tile they need, first we need to find the area of the floor and tile.

Area of the floor (rectangle shape) = Length * Width

= 20 feet * 40 feet 20 feet Floor

= 800 Square feet

40 feet
Area of the tile (rectangle shape) = Length * Width

= 2 feet * 1 feet 1 feet Tile

= 2 Square feet
2 feet

Number of tile require = Area of the floor / Area of the tile

= 800 / 2

= 400 pcs tile

So to decorate the floor they require 400 pcs tiles

Application 5: A shoe manufacturer recently bought few big cartoon boxes to keep their shoe after
production. Cartoon box size Length 3 feet, Wide 2 feet and Height of 2 feet. If their shoe box size
Length 1 feet, 0.5 feet wide and 0.5 feet height. So how many shoe box will fit in the each cartoon
box?
Solution:

To find how many shoe box they can keep in the each cartoon box we need to find out the volume of
cartoon box and shoe box

Volume of the cartoon = Length * Wide * Height

= 3 feet * 2 feet * 2 feet

= 12 cubic feet

Volume of the shoe box = Length * Wide * Height

= 1 feet * 0.5 feet * 0.5 feet

= 0.25 cubic feet

Capacity of the cartoon box = Volume of the cartoon / Volume of the shoe box

= 12 cubic feet / 0.25 cubic feet

= 48

So this cartoon box can hold up to 48 shoe boxes.