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In your lecture CIMA P1 Linear Programming (b) Shadow prices, you ultimately decide that point B on the Graphical approach is the optimum production plan as this is where the ISO Contribution Line reaches furthest out whilst staying within the Feasible Region due to the angle of the line based on 6S, 9E being extrapolated out.
MY question is why B, and not A? Albeit point A is on the ‘S’ axis, it is still within the Feasible Region and if you were to plot the ISO Contribution Line at the same angle it would be further out than that which crosses point ‘B’, even though all the points on the line at this point would be outside the Feasible Region, it is still within the region at point ‘A’.
Ok, so I have worked this out myself, my ‘S’ axis is not proportionate in length per marker (10,20,30,40) to my ‘E’ axis. It’s slightly shorter and as such gives the impression that ‘A’ is further out than it should be. Calculating the contribution at point ‘A’ also proves it is lower than ‘B’.
Well that was fun!
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