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Forums › ACCA Forums › ACCA PM Performance Management Forums › Question on linear programing in June 2010
CUT AND STITCH
I didnt find calculating the parts a and b too challenging (finding out the max contribution and shadow price)
My question is regarding part c.
How did the examiner calculated the labour rate to be $1.5 when it wasnt given in the exam
All we know is shadow price for each extra hr of labour is $4.
Please. Help!!
Check the question – there is additional information given before part c of question 🙂
The tailors have offered to work an extra 500 hours provided that they are paid three times their normal rate of $1·50 per hour at $4·50 per hour.