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Q104 of Kaplan Kit is as follows:
An organisation is experiencing a shortage of resources and has graphed a potential linear
programming solution which shows its first product, televisions, on the horizontal axis and
its other product, tablet computers, on the vertical axis.
The iso-contribution line to solve the linear programme is very flat and downward sloping.Which of the following statements is likely to be true for the company?
A The contribution per unit for tablet computers must be higher than that for
televisions
B The contribution per unit for televisions must be higher than that for tablet
computers
C The contribution per unit for each type of product is very similar
D The contribution per unit for one of the products must be negativeANSWER IS OPTION A
I very well get that the line will be downward sloping, ALWAYS. But what are they meaning by “flat”.
Also, enlighten me on how to interpret the line to conclude about the relative contribution of the products.By flat they mean that the line is not very steep.
Have a go yourself at drawing the contribution line is the contribution from table computers is $10 and from televisions is $1. You will find that the line is sloping downwards but a very small slope i.e. almost horizontal.
Okay, now I am clear.
The axes represent Units of the products right??
My bad, thought that it is contribution p.u of each product .Thank you !!
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