What’s it all about?
A technique related to selecting priorities on the basis of ‘Contribution per Unit of Limiting Factor’ when there is more than one Limiting Factor.
Practice Questions
(These aren’t mine, but should be useful for you. Do remember that different teachers may use different techniques and different terms).
This is an introduction then a worked ACCA exam example.
Key things to note:
Making sure you show your simultaneous equations. there are other ways of doing these things on a calculator, but if the question asks for a simultaneous equation and you don’t do it you are throwing away marks.
Possible Written Questions.
(No indication of marks – the more marks a question gets, the more you are expected to write – detail that is, not just words!) If you can’t answer these, you need to do some more reading. I do ‘find’ questions elsewhere, so these aren’t all questions I have used myself.
Often a calculation question will also ask you calculate the Shadow Price. Don’t forget to do it. That would be just throwing away marks.
Explain the concept of Shadow Price.