question archive The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent military operation
The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent military operation
Subject:Operations ManagementPrice: Bought3
The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent military operation. Working the normal two shifts of 40 hours per week, the BBBC production process usually produces 2,500 uniforms per week at a standard cost of $120 each. Seventy employees work the first shift, and 30 employees work the second. The contract price is $200 per uniform. Because of the urgent need, BBBC is authorized to use around-the-clock production, 6 days per week. When each of the two shifts work 72 hours per week, production increases to 4,000 uniforms per week but at a cost of $144 each.
For part b of this question, I am confused on where 1,200 and 2,160 came from.
