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7 Cards in this Set

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Methods to solve the two linear independent equations?
1. Multiplication: to multiply two equations by the same number

2. Substitution: to substitute one variable to another equation
Interprete linear equation as a graph:

y = a + bx
y - the dependent variable which varies with the x value

a - y-intercept which will cut the y axis given x = 0

b - coefficient or slope which refer to how the y value changes when one unit of x changes

x - independent variable which will change the y-value
How the linear equation apply to the costing?

y = a + bx
In terms of cost:

y = total costs
a = fixed costs which is positive although production units are zero

b = the change in total costs when one unit of x change

x = no. of units produced
How to determine the slope of linear equation
slope = change in y / change in x (to determine how much y will change for one unit of x change)
What is the positive and negative slope mean?
Positive slope will go upward as x goes up, y will go up too

Negative slope will go downward as x goes up, y will go down.
what is the slope for horizontal line?
As x change, y is constant; so slope =
(y2 -y1) / (x2 - x1) = 0 / 1 = 0
what is the slope of vertical line?
as x is constant, y is changed; so
(y2 -y1) / (x2 - x1) = 1/0 = infinity or the steepest slope.