• February 6th, 2017

The Big Black Bird Company (BBBC) has a large order for special plastic-lined

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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, 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 the second. The contract price is $200 per uniform. Because of the urgent need, BBBC is authorized to use around the-clock production, six days per week. When each of the two shifts works 72 hours per week, production increases to 4,000 uniforms per week but at a cost of $144 each.

a. Did the productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?

b. Did the labor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?

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