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Hi John,
An organization 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 line to solve the linear programme is very flat and downward sloping.
Which of the following statements is likely to be true for the company?
A. The contribution per unit for tablet computers must be higher than that for
televisions
B. The contribution per unit for televisions must be higher than that for tablet
computers
C. The contribution per unit for each type of product is very similar
D. The contribution per unit for one of the products must be negativeCan you please explain to me what does the iso-contribution line being very flat tells us about the contribution per unit?
Thank you.
I assume that you have watched my free lectures on linear programming and are therefore clear that the angle/slope/gradient of the iso-contribution line depends on the contribution per unit of each of the two products.
If both products were giving the same contribution per unit then the line would be at 45 degrees.
The more the contribution per unit from one product is greater that that from the other product then the more the angle of the line favours the product with the higher contribution.
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