Why Does It Cost More per Unit to Add a Second Shift? Please review page 128 of your text before responding. Requirements: - Your discussion should be at least 200 words. 128 - Comprehensive Business Review Concepts and Cases with Capstone' Business Simulation Why Does It Cost More per Unit to Add a Second Shift? Application in CSTOONE. Each production line's capacity is listed as first shift capacity, which is the number of units, in thousands, that can be produced each year by running a single eight-hour shift. In Capstone, companies can run two different shifts over the course of the day. You can imagine one shift starting in the morning and another in the evening. which allows companies to produce two units of their product for each unit of capacity. If companies need to increase production. they can choose to schedule a second shift. Second shift workers arrive at the end of the first shift and work a full eighthour shift. Each day, employees working the second shift receive 50% higher wages, which increases the company's labor costs by 50% and requires it to use more employees to cover the shift. wages, which increases the company's labor costs by 50% and requires it to use more employees to cover the shift. Real-World Application For employers, hiring and retaining employees that work beyond the standard nineto-five job can be a difficult task. One way to offset this and make the second shift more appealing is through offering pay premiums. According to SHRM.org, "Organizations with 24/7/365 operations face the challenge of recruiting and staffing employees to work beyond standard day shifts. An effective practice used by many US employers is using shift differentials - pay premiums to compensate employees for working shifts other than regular weekday hours." Shift differentials can also be referred to as shift premiums. As second shift hours are typically worked between 3 p.m. and 8 a.m., the shift premiums are used to attract employees to work these irregular hours