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Past exam June 2008. Question 2 part b

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Past exam June 2008. Question 2 part b

  • This topic has 3 replies, 2 voices, and was last updated 13 years ago by AvatarJohn Moffat.
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  • March 26, 2013 at 11:02 am #120668
    Avatarsumayyanaser
    Member
    • Topics: 3
    • Replies: 5
    • ☆

    Sir can you please explain in question 2 of part b June 2008 exam

    Why D is the feasible region why not C

    March 26, 2013 at 1:04 pm #120679
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    You mean the optimum solution (the feasible region is the area bounded by OABCDE)

    When you move the contribution line away from the origin, keeping is parallel, then the furthest corner away is corner D. And therefore this is the optimal solution.

    (You can check by calculating the mix at point C and the resulting total contribution – you will find that it is higher for point D)

    March 26, 2013 at 2:24 pm #120680
    Avatarsumayyanaser
    Member
    • Topics: 3
    • Replies: 5
    • ☆

    Thank you sir

    March 28, 2013 at 6:32 pm #120920
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    You are welcome 🙂

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