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Sir I am trying to find out the optimal point by solving the iso-contribution line in the question Cosmetic Co (Dec 2010) in BPP exam kit.
In your lecture, you said that it does not matter what the total contribution is taken we always assume any contribution to have the linear relation because the slope of the line would be a straight line (ie iso-contribution line). The more we move away the iso-contribution line by increasing the total contribution the more the line would be moved away towards furthest point (ie optimum point).
If we assume the contribution to be $17000 we calculate iso-contribution line by solving objective function:
C = 9x + 8y
x = 17000 / 9 = 1888.89
y = 17000 / 8 = 2125If I draw the iso-contribution line on the graph by plotting values of X and Y calculated above then it is possible to identify the optimum point which would be at the intersection point in the feasible area.
Is that correct. If not please do correct me!
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