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.
C
You might also like to view...
The person who promises to pay a certain amount of money at a definite future time is called the
a. maker of the note. b. payee of the note. c. discounter of the note. d. endorser of the note.
The difference between the debits and credits for each pair of columns in the Income Statement and Balance Sheet columns of the work sheet represents net income or net loss
Indicate whether the statement is true or false
Which of the following statements does not apply to preventing "garbage in, garbage out" when implementing a forecasting game plan?
a. The quality of the financial statement forecasts will depend on the quality of the forecast assumptions. b. The quantities forecasted within financial statement forecasts will depend on the quantity of the forecast assumptions. c. Analysts should justify and evaluate the most important assumptions that reflect the critical risk and success factors of the firm's strategy. d. Analysts can impose reality checks on the assumptions by analyzing the forecasted financial statements using ratios, common-size, and rate-of-change financial statements.
When bonds are issued at a premium, the total interest cost of the bonds over the life of the bonds is equal to the amount of
a. interest payments made over the life of the bonds minus the amount of issuance premium. b. issuance premium. c. interest payments made over the life of the bonds plus the amount of issuance premium. d. interest payments made over the life of the bonds.