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From Business Mathematics
To formulate: define decision variables (x,y), write objective function (Max/Min Z), write constraints from resources (≤/≥/=) and add x≥0, y≥0. This converts the word problem into a mathematical LPP.
EMV = 0.6×50,000 + 0.4×10,000 = 30,000 + 4,000 = 34,000. So expected payoff = ₹34,000.
Business mathematics are mathematics used by commercial enterprises to record and manage business operations. Commercial organizations use mathematics in accounting, inventory management, marketing, sales forecasting, and financial analysis.
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Break-even point is the level of sales/output at which profit is zero.
Profit Π = Revenue − Cost. At break-even, Π = 0, so Revenue = Cost.
If revenue R = pQ and cost C = F + vQ (fixed + variable), then: pQ = F + vQ (p − v)Q = F Q = F/(p − v)
This shows break-even units depend on fixed cost and contribution per unit (p−v).