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12. Cisco Limited applies linear programming in solving limiting resources decisions. The company makes use of material Beta that is sourced from the local market
12. Cisco Limited applies linear programming in solving limiting resources decisions. The company makes use of material Beta that is sourced from the local market at a price of N$0.80 per kg. The company's objective function in linear programming is to maximise profit. The shadow price of material Beta is N$2 per kg. The following statement(s) is/are correct: (i) Contribution will be increased by N$2 for each additional kg of material Beta purchased at N$0.80 per kg (ii) The maximum price which should be paid for an additional kg of material Beta is N$2 (iii) Contribution will be increased by N$1.20 for each additional kg of material Beta purchased at N$0.80 (iv) The maximum price which should be paid for an additional kg of material Beta is N$2.80 a. (i) only C b. (ii) only C None of all C d. (ii) and (iii) C e. (i) and (iv)
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