• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

BPP F5 Revision kit 2014/2015 2nd edition Question 30

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › BPP F5 Revision kit 2014/2015 2nd edition Question 30

  • This topic has 5 replies, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • September 3, 2015 at 8:01 pm #269735
    matov
    Participant
    • Topics: 2
    • Replies: 4
    • β˜†

    I am a bit confused in this question πŸ™
    Why when I solve equations and derive optimal production plan, my numbers do not give me maximal contribution that can be earned?
    Is that meen that solving equation I find optimal production plan but I am not shure that the contribution is maximaised becouse I can produce first units with higher contribution then others although resourses are not fully utilized?

    September 4, 2015 at 8:14 am #269784
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • β˜†β˜†β˜†β˜†β˜†

    I am not sure which question you mean, because I have the newer edition of the revision kit. Are you asking about a question called Higgins?

    The answer in the book is correct and I am not quite sure what you are meaning. The optimal solution is always found by moving the contribution line as far away from the origin as possible without leaving the feasible region – it is at the intersection of the two constraints at that corner. This will always be the solution that gives the maximum contribution.

    I can only really suggest that you watch the free lecture on linear programming where the approach and the logic is explained in full.

    September 4, 2015 at 5:12 pm #269856
    matov
    Participant
    • Topics: 2
    • Replies: 4
    • β˜†

    Hello John,
    The Question is exactly the same Higgins.

    I solve the equations:
    1.) 0.270P+0.270S < 5400
    2.) 0.5P+0.75S < 12000
    Multiply 2nd one by 0.54 I derive equation 3.):
    3.) 0.275P+0.275S = 6480
    Then I get the result S=8000 P=12000

    But these results are not profit maximising results.

    In this way I am trying to get the right answer before making graph. But as I sow these method which I use is wrong in terms of contribution maximising.

    In this way I found optimal use of resource but not contribution maximising solution.

    September 4, 2015 at 6:44 pm #269862
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • β˜†β˜†β˜†β˜†β˜†

    But you have not found the optimal use of resource!

    The optimal use of resources is that that gives the optimal profit. It would be pointless to buy resources just because they were available – you will only buy whatever you need in order to generate maximum contribution.

    You cannot solve a linear programming question without drawing the graph. Partly because you risk getting the wrong answer (as you have done) but also because the examiner specifically asks for the graph and there will be marks for drawing it.

    Again, I do suggest that you watch the free lecture on linear programming where I make exactly these same points.

    September 4, 2015 at 7:14 pm #269865
    matov
    Participant
    • Topics: 2
    • Replies: 4
    • β˜†

    Thank you John,
    Sorry for my misunderstanding. I will watch lectures again.

    Best regards,

    Vladimir

    September 4, 2015 at 9:23 pm #269876
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • β˜†β˜†β˜†β˜†β˜†

    You are very welcome πŸ™‚

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options: Β β€œRead the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • mrjonbain on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Ken Garrett on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Ken Garrett on The nature and structure of organisations – ACCA Paper BT
  • OmarAlbeity on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Salimbek909 on The nature and structure of organisations – ACCA Paper BT

Copyright © 2025 Β· Support Β· Contact Β· Advertising Β· OpenLicense Β· About Β· Sitemap Β· Comments Β· Log in