1. 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:

12-2 am - Normal workload=100 packages

2-4 am - Productivity= 76 packages

4-6 am - Productivity=50 packages

6-8 am - Productivity= 24 packages

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

8-10 am - Productivity= 24 packages

10-12 pm - Productivity= 50 packages

2-4 pm - Productivity= 100 packages

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. Estimate lost productivity to VVI.