While glancing over the sensitivity report, you note that the stitching labor has a shadow price

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

 

Solution