While Glancing Over the Sensitivity Report, You Note That the Stitching

question 56

Multiple Choice

While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:

• A) the next worker that offers to work an extra 8 hours should receive at least $80.
• B) you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.
• C) you would be willing pay up to $60 for someone to work another 6 hours.
• D) you would lose $80 if one of your workers missed an entire 8 hour shift.

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Definitions:

Market Analysis

the study of market conditions to identify opportunities and challenges, understanding demand, competition, and other factors influencing the market.

Due Diligence

The comprehensive investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or contract with another party, or an act with a certain standard of care.

Feasibility Reports

Documents that assess the practicality of a proposed plan, project, or system by analyzing its technical, economic, legal, and scheduling aspects.

Failure Analysis

The systematic investigation of a process, product, or system failure to identify the causes and suggest improvements.