S.

No Operation Regular Shirt Labor Content (minutes/shirt)

1 Layering and Cutting 0.25
2 Make Collar 3.9
3 Make cuffs 2
4 Make sleeves 0.65
5 Make front 2.5
6 Make back 1.7
7 Join shoulders 0.66
8 Attach collar 1.65
9 Attach sleeves 1.55
10 Stitch down sleeves 0.65
11 Sew side seam 1.8
12 Attach cuffs 1.55
13 Hem bottom 1.7
14 Inspect 1.5
15 Iron 1.95
16 Fold,package 1.75

16000
800
Number of workers Minutes/shirt/worker Capacity
4 0.0625 16.0000
8 0.4875 2.0513
4 0.5 2.0000
2 0.325 3.0769
6 0.4166666667 2.4000
4 0.425 2.3529
2 0.33 3.0303
4 0.4125 2.4242
4 0.3875 2.5806
2 0.325 3.0769
4 0.45 2.2222
4 0.3875 2.5806
4 0.425 2.3529
4 0.375 2.6667
4 0.4875 2.0513
4 0.4375 2.2857
 For Normal shirts For Customized Shirts
Cost comparison Mike's Plan Ike's Plan Mike's Plan Ike's Plan
Raw materials $7 $7 $7.70 $7.70
Direct Labor $3.47 $3.43 $3.47 $7.68
Indirect Labor $1.03 $1.03 $1.03 $1.03
Other Indirect Labor $4.50 $4.50 $4.50 $4.50
Total Manufacturing costs $16.00 $15.96 $16.70 $20.91
Retail price $50 $50 $70 $70
Profit/ Shirt $34.00 $34.04 $53.30 $49.09