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Hi John!
Concerning question 32, could you explain the logic of the optimum production plan?
The marking scheme seemed a bit difficultThe only December 2016 exam available is the computer based exam, and question 32 is asking about problems and improvements in the budgeting – there is no mention of an optimal production plan.
You will have to say which bit of the answer you are not clear about – I am not going to type out a whole answer here, and it is all very standard key factor analysis 🙂
How did they arrive at the following optimum plan for part (a):
Shakes (contract) 5,000
Cookies 9,800
Cakes 10,080Again, it is standard ket factor analysis (have you not watched my free lectures on this?)
You calculate the contribution per unit of the limited resource (which in this question is per gm of Betta) for each of the products, and you rank the products in order of contribution per gm.
Obviously they have to make 5,000 shakes which uses up some of the Better, but the rest of the Betta is used for the products in order of their ranking until there in no Betta remaining.
I do suggest that you watch the free lecture (if you have already watched it, then I suggest that you watch it again 🙂 )
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