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Q. Big Black Bird Business (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent Mideast operation. Working normal 2 shifts of 40 hours, BBBC production process usually produces 2,500 uniforms per week at a standard cost of $120 each. Seventy employees work first shift and 30 second. Contract price is $200 per uniform. Because of urgent need, BBBC is authorized to use around--clock production, 6 days per week. When each of 2 shifts works 72 hours per week, production increases to 4,000 uniforms per week but at a cost of $144 each.

 

 

Operation Management, Management Studies

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