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It’s an MCQ

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › It’s an MCQ

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by LMR1006.
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  • February 3, 2024 at 4:48 am #699642
    Shahzad111
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    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 like to solve the linear programme is very flat and downward sloping.
    Options: which is true
    A) The contribution per unit for tablet must be higher than that for television
    B) The contribution per unit for television must be higher than that for tablet
    C) The contribution per unit for each product is similar
    D) The contribution per unit for one of the product’s must be negative.

    Explain the answer , and also elaborate the iso contribution line if it’s flat and if it’s upward or downward what does it indicate . Thanking in anticipation

    February 3, 2024 at 7:47 am #699656
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1507
    • ☆☆☆☆☆

    By flat they mean that the line is not very steep.

    Let’s say you go down the line from left to right as you look at the line.

    The axes represent – Units of the products

    This indicates that tablet production must be cut to increase the amount of production of televisions in order to maintain the same level of overall contribution from selling both types of good. This indicates a higher level of contribution from tablets.

    So what do you think the answer is now?

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