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I ran into this question, it’s Answer is A.
Can you explain how it’s A? When the according to the line less of tablet is produced and more of televisions is produced.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 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 negativeLet’s say you go down the line fro left to right as you look at the line. 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. Hope this helps.
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