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.
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