Your client, Virus-Victim, Inc. (VVI), has suffered an attack. The company sells popular retail items only via the Internet to customers all over the world. The perpetrator has been identified and local law enforcement and the county prosecutor are handling the criminal action.

VVI believes that the perpetrator has the deep pockets to compensate VVI for its losses associated with the attack. The perpetrator committed the act at 12:01am Saturday, July 4th and the retail website was down for 8 hours. At 12:01am alarms triggered and the Director of Information Technology (IT) and ten IT programmers worked all weekend long, 20 hours, to restore and remediate the attack.

. The warehouse and distribution center usually operates 24 hours a day, 7 days per week. Normal productivity is 50 packages per hour. Sales are packaged and ready for shipping an average of two hours after the customers completes their purchase on the VVI website. During the Internet outage productivity in the warehouse operated as follows:

12-2am - Normal workload = 100 packages

2-4am - Productivity = 76 packages

4-6am - Productivity = 50 packages

6-8am - Productivity = 24 packages

At the 8 hour mark, the warehouse and distribution center was at zero packages.

8-10am - Productivity = 24 packages

10-12pm - Productivity = 50 packages

12-2pm - Productivity = 76 packages

2-4pm - Productivity =100

The variable warehouse and distribution costs average $400 per hour; annual warehouse and distribution fixed costs average $250 per hour. The warehouse maintained full operational capability during the outage and restoration period.

1. Estimate lost productivity to VVI