The Dulac Box plant produces wooden packing boxes to be used inthe local seafood industry. Current operations allow the company tomake 500 boxes per day, in two 8-hour shifts (250 boxes per shift).There are 6 full-time workers on each shift. The company hasintroduced some moderate changes in equipment, and conductedappropriate job training, so that production levels have risen to300 boxes per shift. Also, with these changes there are now 5full-time workers on each shift. Labor costs average $15 per hourfor each worker on each shift. Capital costs were previously $3,000per day, and rose to $3,500 per day with the equipmentmodifications.
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