[Marc]

Hi,

Thank you for your assistance!

[Marc]

As I said Chris, have a look at the recent publication on the ACCA website.

Elena has it correct above.

[Marc]

@emo777 said:
Hmm, Chris, mate, been thinking on marcs answer for a while, i am afraid he is right…

Thanks Gvtftf! I do wish you well for the rest of the paper!

[Marc]

I had studied with BPP and completed mock exams,

My suggestion would be that you look at ACCA’s article on Linear Programming (dated 22/09/14), it would appear you are overlooking the definition of a shadow price.

[Marc]

@emo777 said:
Geshi, i think you missed Cris’s comment. Your calculation is simple and wrong

Some people do seem rather condescending on here which doesn’t seem necessary!

A shadow price is how much you would be willing to pay ‘over’ the original cost, which was stated in the beginning of the question as $2.00. This would therefore mean that you would be willing to pay $4.80 per kg. As the material has become avaliable at $2.00 per kg the answer would be $56.

[Author]

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