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iso contribution line

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › iso contribution line

  • This topic has 5 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • January 20, 2021 at 5:26 pm #607331
    Dany@3081
    Participant
    • Topics: 14
    • Replies: 12
    • ☆

    Question :
    An organisation is experiencing a shortage of resources and has graphed a potential linear programing solution which shows its first product, televisions, on the horizontal axis and its other product, tablet, on vertical axis.
    The iso contribution line is flat and downward sloping.

    Options :
    A) The contribution per unit for tablets is higher than that for televisions
    B) The contribution per unit for televisions is higher than that for tablets
    C) the contribution for each product is similar
    D) the contribution for one product is negative

    the answer is A, can you explain why?

    Is it because that the iso contribution line will touch the point on Y axis (tablets) first, when brought further from from origin?

    January 21, 2021 at 9:00 am #607399
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54665
    • ☆☆☆☆☆

    Where did you find this question?
    The reason I ask is that if you have copied it correctly then the question is nonsense.

    The iso-contribution line cannot be both flat and downward sloping.

    Also, whichever contribution per unit is higher, the iso-contribution line will always be downward sloping! It will be at a steeper angle is televisions give a higher contribution that tablets, and a less steep angle if tablets give a higher contribution that televisions.

    Have you watched my free lectures on linear programming.

    January 22, 2021 at 6:01 pm #607590
    Dany@3081
    Participant
    • Topics: 14
    • Replies: 12
    • ☆

    This question is from kaplan exam kit. I checked the question, I have copied it correctly.

    January 23, 2021 at 9:39 am #607627
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54665
    • ☆☆☆☆☆

    In that case there is a mistake in your exam kit because my previous reply is correct 🙂

    (Have you check on the Kaplan website to see if there is an errata (correction) sheet for the exam kit?)

    January 27, 2021 at 4:08 pm #608258
    Dany@3081
    Participant
    • Topics: 14
    • Replies: 12
    • ☆

    No sir, I haven’t checked. Thank you for suggesting. I will do that.

    January 28, 2021 at 8:59 am #608311
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54665
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘iso contribution line’ is closed to new replies.

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