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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 negativesir my doubt in this is that, for it to be flat, the horizontal value has to be a higher one and the vertical has to be a lower value right? so why is it the other way? please correct me
This is because the iso-contribution line is downward sloping, indicating that as the company produces more tablet computers, it must reduce the production of televisions. To maintain the same level of contribution, the contribution per unit for tablet computers must be higher than that for televisions.
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