Forums › ACCA Forums › ACCA PM Performance Management Forums › Help! Stuck on Linear?
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- June 10, 2011 at 10:42 am #49070
Hi all im stuck on how to find the contribution on Linear!
Thanks in advance!June 12, 2011 at 12:03 pm #84582Hi,
Well you’re supposed to already have the contribution per unit for each product, usually two, for example product A and B give contribution per unit of $2 and $3 respectively, after drawing all the constraint lines on the graph what you is just assume a contribution figure, as crazy as it sounds just guess a figure anything you want let it be $500 or $100000 (OR ANY OTHER FIGURE DOES NOT MATTER), but try to keep the figure within the range of the graph as you’ll have to draw a line on it.
Try to find the combination for that contribution using your two product like in A and B is it is $10000, assume A=0 then 10000 = 2A + 3B, 10000 = 0+3B, find B
B=10000/3 = 3333
using the same method assume B=0 find A , you’ll get A=5000 ok now you have two points A=5000 and B=3333, join them on the graph usually with a broken line to recognize it. The opoint is no matter what contribution you guess the line you draw will always be parllell to any other line you draw on any other contribution it contribution is $5000 the line will be closer to the point of origin but parllell to the $10000 line. It would be better if you assume a contribution small enough to be under all the contraints, now what you do is move away from the origin parllell to the broken line till you reach the maximum last possible point within the contraints which should be the optimal point.I am not sure if this was clear, i really hope so but there is a lecture on this precsiely on the website it should really very much help, i got it from there anyway so 🙂
Anyway hope you got it
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