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Suppose That a Constraint for Assembly Time Has a Shadow

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Suppose that a constraint for assembly time has a shadow price of $50/hour for 15 hours in either direction and that all available assembly time is currently used (would require overtime to do more). If the salary of workers is $30 and they receive 50% extra pay for overtime what should management do?

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Definitions:

Register and Issue Stock

The process where a company records and distributes new shares of its stock to investors, officially increasing the number of shares available.

Statutory Merger

A legal consolidation of two companies into one entity, as approved by local laws and regulations.

Legal Corporation

A legal corporation is an entity that is legally recognized as a separate entity from its owners, providing limited liability protection to its shareholders.

Business Combination

The process of merging two or more companies into one entity, which includes acquisitions and consolidations.

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