Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed



Download 1.72 Mb.
View original pdf
Page226/469
Date01.12.2021
Size1.72 Mb.
#57828
1   ...   222   223   224   225   226   227   228   229   ...   469
solutions-manual-to-bhimani-et-al-management-and-cost-accounting-pearson-2012-1
Trial Corner
(G; D)
TCM = €10G + €3D
1 2
3
(1,000; 800)
(1,000; 3,000)
(3,200; 800)
€10 (1,000) + €3 (800) = €12,400
*

10 (1,000) + 3 (3,000) =
19,000
*

10 (3,200) +
3 (800) =

34,400*
* Optimal solution is G = 3,200 and D = 800.
4
The optimal mix determined in requirement (3) will not change if the contribution margins per square metre change to grocery products, €8 and dairy products, €5. To avoid cluttering the graphic solution in Solution Exhibit 10.16, we demonstrate this using the trial-and-error solution approach.
Trial Corner
(G; D)
TCM = €8G + €5D
1 2
3
(1,000; 800)
(1,000; 3,000)
(3,200; 800)
€8 (1,000) + €5 (800) = €12,000
*
€8 (1,000) + €5 (3,000) = €23,000
*
€8 (3,200) + €5 (800) = €29,600*
* Optimal solution is still G = 3,200 and D = 800. The student can also verify, by drawing lines parallel to the line through G = 500 and D
= 800 (the equal contribution line for €4,000) that the furthest point, where the equal contribution line intersects the feasible region, is the point G = 3,200 and D = 800.

Download 1.72 Mb.

Share with your friends:
1   ...   222   223   224   225   226   227   228   229   ...   469




The database is protected by copyright ©ininet.org 2024
send message

    Main page