App. of B.math-Square Pharma-JnU

APPLICATION OF MATHEMATICS
(INTEGRAL & DIFFERENTIAL CALCULAS , SET AND MATRIX)
IN
REAL WORLD BUSINESS
Group 6
Department of Finance,
Jagannath University,
Dhaka
6/13/2014
Application of Mathematics in Real World Business
Business Mathematics-02
Report
On
Square Pharmaceuticals Ltd.
Submitted to
Kawser Ahmed Shiblu
Lecturer
Department of Finance
Jagannath University.
Submitted by
Group-6
SL NO.
NAME
ID NO.
01
MD. MONOAR HOSSAIN
B-120203005
02
SABIHA JHUMUR
B-120203010
03
MD. SAIDUL ISLAM
B-120203060
04
SUNJIDA PARVEN
B-120203069
05
MD. SHAKHAWAT HOSSAIN
B-120203080
06
07
08
09
10
MD. RAJU AHAMED

EMDAD MUNSHI
AYASHA SIDDIQUA MOUE
MALEKA AKTER
MILON SAHA
B-120203091
B-120203092
B-120203099
B-120203106
B-120203108
Date of Submission: 13 July, 2014

Jagannath University
2|Page
Declaration
We hereby declare that, this report contains no bits and pieces which
has been accepted for the award of any other degree or diploma at any
university or equivalent institutions and that to the best of our
appreciative and faith, this report contains no objects previously
existing or written by another person, except where due reference is
made in the content of the report.
Group- 6
3|Page
Letter of Transmittal
13 July, 2014
Kawser Ahmed Shiblu
Lecturer
Jagannath University.
Sub: Submission of the Report.
Dear Sir,
With due respect, we would like to inform you that, we are the student
of Department of Finance. It is our great pleasure to inform you that we
have got a chance to submit a report on APPLICATION OF
MATHEMATICS IN REAL WORLD BUSINESS - A Study on Square
Pharmaceuticals Ltd. as a requirement for course named Business
Mathematics-02, course no: 2103.
We therefore pray and hope that you would be kind enough to accept
this report and bless us heartily.
Sincerely yours
Group-6
B.B.A. 7th Batch
2nd Year 1st semesters
Jagannath University, Dhaka.
4|Page
Acknowledgement
All praises are due to Almighty Allah, the supreme authority of this
universe who has enabled us to submit the report in time for the course
named Business Mathematics-02.
We express our cordial sense of appreciation, thanks, authentic
gratitude and profound regards to our honorable supervisor Kawser
Ahmed Shiblu, Lecturer, Department of Finance, Jagannath University,
Dhaka for his scholastic direction, pleasant support, constant
encouragement, precious guidance, overall management and
continuous importance throughout the thesis work.
Its a great pleasure to us to express deep gratitude and cordial
admiration to our dearly loved parents, well wishers and friends for
their ever ending wish, affections, support, sacrifice, inspiration,
encouragement and nonstop endorse in the long process of creating our
academic career which can never be repaid.
Group-6
5|Page
Executive Summary
Business Mathematics includes mathematics courses taken at an
undergraduate level by business students. These courses are slightly
less difficult and do not always going to the same depth as other
mathematics courses for people majoring in mathematics or science
fields. The two most common math courses taken in this form are
Business Calculus and Business Statistics. Examples used for problems
in these courses are usually real-life problems from the business world.
An example of the differences in course work from a business
mathematics course and a regular mathematics course would be
calculus. In a regular calculus course, students would study
trigonometric functions. Business calculus would not study
trigonometric functions because it would be time-consuming and
useless to most business students, except perhaps economics majors.
Economics majors who plan to continue economics in graduate school
are strongly encouraged to take regular calculus instead of business
calculus, as well as linear algebra and other advanced math courses.
Other subjects typically covered in a business mathematics curriculum
include:
Matrix algebra
Linear programming
Probability theory
Set
In Our study we show how integral and differential Business calculus is

used in Business as a part of our topic Application of Mathematics in
real world Business. A study on- Square Pharmaceuticals Ltd..
6|Page
Table of Content
Name
Page No.
Acknowledgement
Executive Summary
1.1 Introduction
1.2 Objective of the report
1.3 Scope of the study
1.4 Methodology of the study
1.5 Limitation of the study
2.1 Business Mathematics
2.2 Calculus
2.3 Differential Calculus
2.4 Integral Calculus
5
6
8
8
9
9
10
11
11
12
12
2.5 Theory of Sets

2.6 Matrix
3.1 Company Profile
3.2 Literature View
3.3 Application of Differential Calculus
Part -III
3.4 Application of Integral Calculus
3.5 Application of Set
3.6 Application of Matrix
Conclusion
Part -IV
Bibliography
13
13
15
16
17
18
21
23
30
30
Part - I
Part - II
7|Page
Part-I
1.1 Introduction
Business ownership requires more than skill in creating a product or
talent at providing a service. Overseeing the finances of your company
is key to survival and success. Understanding basic business math is
necessary for profitable operations and accurate record keeping.
Knowing how to add, subtract, multiply, divide, round and use
percentages and fractions is the minimum you need to price your
product and meet your budget. If math is not your strength, partner
with someone who can take over that role or hire a trusted employee
to help your operation stay in the black and grow responsibly.
Since the research topic is Application of Mathematics in real world
Business - A Study on Square Pharmaceuticals Ltd. and also find out
how math rules are applied in the business to determine average cost,
marginal const, Net profit etc.
1.2 Objective of the report

The main objective of this study is to gain knowledge about Application
of Mathematics in Real World Business.
Primary Objectives:
The main objective of this report is to analyze Financial Statement of
Square Pharmaceuticals Ltd. to find out how they Apply Integral and
Differential calculus function in their Financial Statement.
8|Page
Secondary Objectives:
This assignment has also some other objectives which are as follows:
To know about the application of Business Math
To know how to determine net profit, per unit average cost etc by
using Calculus mathematics.
1.3 Scope of the Study

There were huge scopes to work in the arena of the case. Considering
the dead line, the scope and exposure of the paper has been wideranging. The study behind Application of Mathematics in Real World
Business - A Study on Square Pharmaceuticals Ltd. has covered
overall analysis by which we can know about the Application of
mathematics which they use.
1.4 Methodology of the study
Mathematics With Applications In Management & Economics
(7th edition) by Prichett & Saber
Business Mathematics (11th edition) by D.C. Sancheti & V.K.
Kapoor.
Sources of data
9|Page
Here the secondary sources of information were used. The secondary

sources are:
Web sites
Books
Annual report
1.5 Limitation of the study

As we collected our information through secondary sources, so we have
not been able to collect more information which could give us more
clear knowledge about the Application of Math. While conducting the
case on Application of Mathematics in real world Business - A Study
on Square Pharmaceuticals Ltd. some limitations were yet present
there:
Lack of time shortage many related part cannot be paying

attention in depth.
Current data and information on different activities was
unavailable.
As a report analysis, it has been prepared shortly
10 | P a g e
Part II
2.1 Business Mathematics
Business mathematics is mathematics used by business enterprises to
record and manage business operations. Business organizations use
mathematics in accounting, inventory management, marketing, sales
forecasting, and financial analysis.
Mathematics typically used in commerce includes elementary
arithmetic, elementary algebra, statistics and probability. Business
management can be made more effective in some cases by use of more
advanced mathematics such as calculus, matrix algebra and linear
programming; see operations research.
2.2 Calculus
Calculus is the mathematical study of change,[1] in the same way that
geometry is the study of shape and algebra is the study of operations
and their application to solving equations.
Calculus is a part of modern mathematics education. A course in
calculus is a gateway to other, more advanced courses in mathematics
devoted to the study of functions and limits, broadly called
mathematical analysis.
It has two major branches. They are
Differential Calculus (concerning rates of change and slopes of
curves), and
11 | P a g e
Integral Calculus (concerning accumulation of quantities and the

areas under and between curves);
2.3 Differential Calculus

Differential calculus is the study of the definition, properties, and
applications of the derivative of a function. The process of finding the
derivative is called differentiation. Given a function and a point in the
domain, the derivative at that point is a way of encoding the small-scale
behavior of the function near that point. By finding the derivative of a
function at every point in its domain, it is possible to produce a new
function, called the derivative function or just the derivative of the
original function.
2.4 Integral Calculus
Integral calculus is the study of the definitions, properties, and

applications of two related concepts, the indefinite integral and the
definite integral. The process of finding the value of an integral is called
integration. In technical language, integral calculus studies two related
linear operators.
The indefinite integral is the anti derivative, the inverse operation to
the derivative. F is an indefinite integral of f when f is a derivative of F.
(This use of lower- and upper-case letters for a function and its
indefinite integral is common in calculus.)
The definite integral inputs a function and outputs a number, which
gives the algebraic sum of areas between the graph of the input and
12 | P a g e
the x-axis. The technical definition of the definite integral is the limit of
a sum of areas of rectangles, called a Riemann sum.
The symbol of integration is , an elongated S (the S stands for "sum").
The definite integral is written as:
2.5 Theory of Sets

Set theory is a mathematical abstract concerned with the grouping of
sets of numbers that have commonality. For example, all even numbers
make up a set, and all odd numbers comprise a set. All numbers that
end in zero make up a set of numbers that can be divided by 10. Using
and comparing sets enables the creation of theories and rules that have
practically unlimited scope, whether in mathematics or applied to areas
such as business.
2.6 Matrix
A matrix organizes a group of numbers, or variables, with specific rules
of arithmetic. It is represented as a rectangular group of rows and
columns, such as
.
13 | P a g e
This 2X3 matrix has two rows and three columns; the number 23 is
in the second row of the third column.
An example of a square matrix with variables, rather than numbers, is .
This is a square matrix because the number of rows equals the number
of columns.
We can only add matrices of the same dimensions, because we add the
corresponding elements. .
Matrix multiplication is another matter entirely. Lets multiply matrices
MP=R. M is an m X n matrix; P is n X p; and the result R will have
dimension m X p. Note that the number of columns of the left-hand
matrix, M, must equal the number of rows of the right hand matrix, P.
For example. A matrix can also multiply, or be multiplied by, a vector.
Matrix mathematics has many applications. Mathematicians, scientists

and engineers represent groups of equations as matrices; then they
have a systematic way of doing the math. Computers have embedded
matrix arithmetic in graphic processing algorithms, especially to render
reflection and refraction. Some properties of matrix mathematics are
important in math theory.
However, few of us are likely to consciously apply matrix mathematics
in our day to day lives.
14 | P a g e
Part-III
3.1 Company profile
Square Pharmaceuticals Ltd. was established as a partnership firm in

1958. In 1991 it was converted into a public limited company.
Square Pharmaceuticals Limited is the largest pharmaceutical company

in Bangladesh and it has been continuously in the 1st position among all
national and multinational companies since 1985. Since 1987 Square
has taken aggressive measures to explore new countries as potential
export market. It pioneered exports of medicines from Bangladesh in
1987 and has been exporting antibiotics and other pharmaceutical
products. More & more countries are getting confidence in Squares
product every year. But its true that in the competitive global
environment Square is still struggling to ensure firm footings in global
market. Square is the flagship Pharma Company in Bangladesh, wants
to be a global player.
SQUARE Pharmaceuticals Limited has extended its range of services
towards the highway of global market. This extension in business and
services has manifested the credibility of Square Pharmaceuticals
Limited.
Contact to Square Pharmaceuticals Limited
15 | P a g e
Corporate Office Location:

Square Center, 48, Mohakhali C/A, Dhaka- 1212
Phone: +88 (02) 985 9007, 8833047-56
Fax: +88 (02) 8834941, 8828768
Factory/ Plant Location:
Shalgaria, Pabna Town
Pabna, Bangladesh.
3.2 Literature View
Mission:
Square Pharmaceuticals Mission is to produce and provide quality &
innovative healthcare relief for people, maintain stringently ethical
standard in business operation also ensuring benefit to the shareholders,
stakeholders and the society at large.
Vision:
We view business as a means to the material and social wellbeing of
the investors, employees and the society at large, leading to accretion
of wealth through financial and moral gains as a part of the process of
the human civilization.
Objective of the Company
Our objectives are to conduct transparent business operation based on
market mechanism within the legal & social framework with aims to
attain the mission reflected by our vision.
16 | P a g e
3.3 Application of Differential Calculus

We are given x unit of tablet are produced, the average cost per unit is
A(x) Taka (we assume). Where
Now we find out the value of y that maximizes average cost per unit.
We start by A(x) as
-1
+0.05x
Differentiating A(x) we obtain

A(x)
A(x)
200(-1)
-20
-2
-2
(0.1) + 0.05
+ 0.05
+ 0.05
Continuing, we get A(x) equal to 0 and solve for x

+0.05=0
So X = 150 and X= -250
We discard X=-250 because it is negative and the problem statement
requires that X be greater than 0
Now we find out Minimum Average Cost
To find the minimum average cost per unit of tablet, we write
17 | P a g e
A(x)
+0.05x
Then
A (150)
=
=
+0.05*150
17.50 per unit
3.4 Application of Integral Calculus
Using Integral Calculus, We can determine

Net profit
Consumer Surplus
Producer Surplus
Illustration 1
Square Pharma has a Fixed Cost of 820 TK. Corer.
Here (in corer)
Total revenue= (4
Total cost= 4
And, Fixed cost=820

So,
(4
18 | P a g e
Or,
Or
Or,
Here ,
36
36
t=36 month .
Now,
Net Profit= (4
=(4
=(4
36
) 4
36
=14400-2880-1440-5760-820
=Tk.3500 corer
So, the net profit is Tk.3500 corer.
Illustration 2
At Market Equilibrium, Consumer demand of Square Pharma 400,000
unit of Tablet. This has a demand function (we assume)
6
From Above Information we can Compute Consumers Surplus as follow:
19 | P a g e
First, we must determining the equilibrium point

4 thousand, so we compute the
as
, we are given
6
Or
6 4
=25-0.6(20)
=Tk.13 per unit of Tablet
*1 unit= 10 Tablet.
Consumer Surplus,
Quantity Demand- total revenue
6 )
4
3 4
4 (4
10000-3200-5200
Tk.1600 thousand.
20 | P a g e
Illustration 3
At Market Equilibrium, Consumer demand of Square Pharma 400,000
unit of Tablet. This has a Supply function (we assume)
3
First we begin by determining the equilibrium point (

more we are given
=
.Since once
400 thousand .
we are now computing

=
(400)
as
=7+0.3(400)1/2
=
Tk.13 per unit of Tablet.
Then,
Producers surplus
Total revenue- quantity supply
(13)(400)-
5200-[(7)(400)+0.2(400)3/2 (0+0)]
Tk.800 thousand
)dq
3.5 Application of Set

A Survey on Consumer Preference (1200 Sample)
21 | P a g e
A question was Asked them that which companys medicine do you

prefer And provide them 3 alternatives: Square, Beximco and Incepta.
Among Them 512 chose Square, 400 chose Beximco and 350 chose
Incepta. 95 chose both Square & Beximco, 142 chose both Square &
Incepta, 100 chose Beximco & Incepta and 50 chose all of them. Now
from Above data we can determine:
1. How Many consumer did not Choose any one?
2. How Many consumers choose only one?
Solution
(1) We are given:
n(U)
=1200
n(S) =512
n(B)
=400
n(I) =350
n(SB)
=95
n(SI)=142
n(BI)
=100 and
n(SBI) =50
Now
n(S U B U I)
= n(S) + n(B) + n(I) - n(SB)-n(SI) - n(BI) + n(SBI)

=512+400+350-95-142-100+50
=975
So no. of consumer did not choose any,

=
n(u)- n(S U B U I)
1200-975 =
225person
(2) No. of consumer who choose Only Square

= n(S) - n(SB) - n(SI) + n(SBI) = 512-95-142+50= 325person
No. of consumer who choose Only Beximco
= n(B) - n(SB) - n(BI) + n(SBI) = 400-95-100+50= 255 person
22 | P a g e
No. of consumer who choose Only Incepta

= n(I)-n(BI)-n(SI) +n(SBI) =350-100-142+50= 158person
So, Square is the highest preference among consumers
3.6 Application of Matrix

A matrix is a two-dimensional arrangement of numbers in rows and
columns enclosed by a pair of square brackets [ ]in the form shown
below
Example:
a11
a12
a13
a21
a22
a23
a31
a32
a33
The above figure shows an m n matrix of m rows and n columns.

In this project, the following applications to matrices will be discussed:
Applications of Matrix Addition and Subtraction
Applications of Multiplication of Matrices
Application of inverse Matrices
But first, lets discuss how various situations in business and economics
can be represented using matrices. This can be done using the following
Examples:
23 | P a g e
Annual productions of Square Pharmaceuticals Limited of three

products may be represented as follows:
Tablet
capsule
syrup
600000
400000
300000
500000
350000
250000
2. Number of staff in the office can be represented as follows:

1
Officer
Staff
Worker
Applications of Matrix Addition, Subtraction and Multiplication

The applications of addition, subtraction and multiplication of matrices
can be illustrated through the following example
Illustration 1 - The quarterly production of Tablet, Capsule, and Syrup
for the year 2012 and 2013 are given below.
A=
B=
Q1
Q2
Q3
Tablet
5000
3000
5000
7000
Capsule
2000
3000
3000
4000
Syrup
1000
3000
1000
3000
Q1
Q2
Q3
Q4
Tablet
3000
4000
5000
6000
Capsule
1000
3000
2000
4000
Syrup
1000
2000
1000
3000
Q4
24 | P a g e
Solution: the total sales of Tablet, Capsule, and Syrup will be obtained
as under:
A+B=
5000 3000 5000 7000
3000 4000 5000
6000
2000 3000 3000 4000
1000 3000
2000
4000
1000 3000
1000 2000 1000
3000
1000 3000
8000
7000
10000 13000
3000
6000
5000
8000
2000
5000
2000
6000
Illustration2-
A represents the production of whole 2013 year is

20000
A=
12000
8000
B represents the production for the first three months

5000
B=
2000
1000
Find the production for the last nine months.

Solution:
20000
A - B =
12000
8000
5000
2000
1000
15000
10000
7000
25 | P a g e
Illustration3- Q represents the total quantity of production and P

represents the price.
20000
Q=
P=
12000
8000
6
6
Solution:
So the cost of production is
20000
Q*C=
12000
8000
6
6
160000
=
72000
48000
Illustration4By using of inverse matrix we can determine the salary of our officers,
staffs and workers.
Let,
X represents the salary of workers
Y represents the salary of staffs
Z represents the salary of officers
Than the equation for 2011, 2012 and 2013 are:
10X+5Y+3Z
=282000
(2013)
8X+4Y+3Z
=240000
(2012)
7X+4Y+2Z
=204000
(2011)
26 | P a g e
Solution:
10 5 3
8 4 3
282000
7 4 2
240000
204000
Step1: finding the determinants: A

4 3
|A|
=10
8
-5
4 2
=
=
=
=
+3
7
10(8-12)-5(16-21)+3(32-28)
10(-4)-5(-5)+3(4)
-40+25+12
-3
Step2: finding the minor matrix:

43
83
84
42
72
74
53
10 3
10 5
42
72
74
53
10 3
10 5
43
8 3
84
-4 -5 4
=
-2 -1 5
3 6
27 | P a g e
Step3: finding the co-factor:

Cij
C11
C12
C13
C21
C22
C23
C31
C32
C33
=
=
=
=
=
=
=
=
=
=
(-1)i+J *Mij
(-1)1+1 *-4
(-1)1+2 *-5
(-1)1+3 *4
(-1)2+1 *-2
(-1)2+2 *-1
(-1)2+3 *5
(-1)3+1 *3
(-1)3+2 *6
(-1)3+3 *0
=
=
=
=
=
=
=
=
=
C11 C12 C13
-4
-4 5 4
C21 C22 C23
C31 C32 C33
2 -1 -5
3 -6 0
-4
Ad joint A=
1*-4
5
4
2
-1
-5
3
-6
0
5 -1 -6
4 -5
A-1= 1 |A| * Ad joint A

-4 2
= 1 (-3)
5 -1 -6
4 -5
28 | P a g e
-4/-3
2/-3
3/-3
5/-3
-1/-3
-6/-3
4/-3
-5/-3
0/-3
For getting of x, y and z we do:
4/-3
2/-3
3/-3
282000
5/-3
-1/-3
-6/-3
*240000
4/-3
-5/-3
0/-3
204000
282000 * -4/-3
240000 * 2/-3
204000 * 3/-3
282000 * 5/-3
240000 * -1/-3
204000 * -6/-3
282000 * 4/-3
240000 * -5/-3 204000 * 0/-3
376000
-160000
-204000
-470000
80000
408000
-376000
400000
12000
=
18000
24000
X
Y
Z
So, X=
12000 is the salary of worker
Y=
18000 is the salary of staffs
Z=
24000 is the salary of officers
29 | P a g e
Part IV
Conclusion:
From the analysis we can say that Mathematics can be applied in
business operation and it helps us a lot to do business accurately and
easily.
Bibliography
BOOKS
Mathematics With Applications In Management & Economics
(7th edition) by Prichett & Saber
Business Mathematics (11th edition) by D.C. Sancheti & V.K.
Kapoor.
Website
http://smallbusiness.chron.com/importance-basic-math-business41097.html
http://www.scribd.com/doc/12243159/Role-of-Mathematics-inBusiness
http://en.wikipedia.org/wiki/Business_mathematics
30 | P a g e

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APPLICATION OF MATHEMATICS

(INTEGRAL & DIFFERENTIAL CALCULAS , SET AND MATRIX)

Application of Mathematics in Real World Business

MD. MONOAR HOSSAIN

MD. SAIDUL ISLAM

MD. SHAKHAWAT HOSSAIN

MD. RAJU AHAMED

Date of Submission: 13 July, 2014

Application of Mathematics in Real World Business

Application of Mathematics in Real World Business

Application of Mathematics in Real World Business

Application of Mathematics in Real World Business

In Our study we show how integral and differential Business calculus is

Application of Mathematics in Real World Business

2.5 Theory of Sets

Application of Mathematics in Real World Business

1.2 Objective of the report

Application of Mathematics in Real World Business

1.3 Scope of the Study

Application of Mathematics in Real World Business

Here the secondary sources of information were used. The secondary

1.5 Limitation of the study

Lack of time shortage many related part cannot be paying

Application of Mathematics in Real World Business

Application of Mathematics in Real World Business

Integral Calculus (concerning accumulation of quantities and the

2.3 Differential Calculus

2.4 Integral Calculus

Integral calculus is the study of the definitions, properties, and

Application of Mathematics in Real World Business

2.5 Theory of Sets

Application of Mathematics in Real World Business

Matrix mathematics has many applications. Mathematicians, scientists

Application of Mathematics in Real World Business

Square Pharmaceuticals Ltd. was established as a partnership firm in

Square Pharmaceuticals Limited is the largest pharmaceutical company

Application of Mathematics in Real World Business

Corporate Office Location:

3.2 Literature View

Application of Mathematics in Real World Business

3.3 Application of Differential Calculus

Differentiating A(x) we obtain

Continuing, we get A(x) equal to 0 and solve for x

Application of Mathematics in Real World Business

3.4 Application of Integral Calculus

Using Integral Calculus, We can determine

And, Fixed cost=820

Application of Mathematics in Real World Business

Application of Mathematics in Real World Business

First, we must determining the equilibrium point

Quantity Demand- total revenue

Application of Mathematics in Real World Business

First we begin by determining the equilibrium point (

we are now computing

Tk.13 per unit of Tablet.

Total revenue- quantity supply

3.5 Application of Set

Application of Mathematics in Real World Business

A question was Asked them that which companys medicine do you

= n(S) + n(B) + n(I) - n(SB)-n(SI) - n(BI) + n(SBI)

So no. of consumer did not choose any,

(2) No. of consumer who choose Only Square

Application of Mathematics in Real World Business

No. of consumer who choose Only Incepta