Let x = current production per 8 hour shift
Required production then equals 1.25 × 2x = 2.5x
Therefore the third shift will need to accommodate 0.5x
Two 10 hour shift would take care of this extra 0.5x required production at an extra labor cost of of 0.5 × Operator rate × 2 hours × Number of employees on two shifts = R×N
This must be compared to the extra costs of the third
0.15 × Operator rate × 8 hours × Number of employees on one shift / 2 = 0.6×R×N
Since RN > 0.6RN, then third shift with x/2 employees would be more economical
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