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Iso – contribution line Dec 2010

Forums › ACCA Forums › ACCA FM Financial Management Forums › Iso – contribution line Dec 2010

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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  • Author
    Posts
  • May 20, 2015 at 11:55 am #247380
    seanog91
    Member
    • Topics: 83
    • Replies: 54
    • ☆☆

    Hi,

    I am wondering how is the Iso cont line calculated in question 4? The constraint function for contribution is C=9X+8Y (X = Cream and Y = Lotion). From my understanding you multiply 9*8 to and then solce the equation. I am confused as to how and why the answer has X=800.

    May 20, 2015 at 4:35 pm #247419
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    Four things:

    Firstly, linear programming (and therefore iso-contribution lines ) is not examinable in Paper F9. So it cannot be asked (and was not asked) in the December 2010 Paper F9 exam. It is only examinable in Paper F5.

    Secondly, it was not relevant for question 4 of the December 2010 Paper F5 exam either – so I really do not know which question you are asking about.

    Thirdly, have you watched the free Paper F5 lectures on linear programming where drawing the iso-profit line is explained?

    Fourthly, if you find the right question and want to ask again, then please ask in the F5 Ask the Tutor Forum if you want me to answer 🙂

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