The Dulac Box plant produces wooden packing boxes to beused in the local seafood industry. Current operations allow thecompany to make 500 boxes per day, in two 8-hour shifts (250 boxesper shift). There are 6 full-time workers on each shift. Thecompany has introduced some moderate changes in equipment, andconducted appropriate job training, so that production levels haverisen to 300 boxes per shift. Also, with these changes there arenow 5 full-time workers on each shift. Labor costs average $15 perhour for each worker on each shift. Capital costs were previously$3,000 per day, and rose to $3,500 per day with the equipmentmodifications.
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