Question 4. Suppose that the capacity of machine 1 is increased to 20 hours, how will this increase impact the optimum revenue?

126 Chapter 3 The Simplex Method and Sensitivity Analysis The proposed change is outside the range (2.67, 16) hr for which the dual price of $14.00 remains applicable. Thus, we can only make an immediate conclusion regarding an increase up to 16 hours. Beyond that, further calculations are needed to find the answer (see Chapter 4). Remember that falling outside the feasibility range does not mean that the problem has no solution.

It only means that we do not have sufficient information to make an immediate decision.