Dave s Stove Top Popcorn currently has three full time employees who are
Dave’s Stove-Top Popcorn currently has three full-time employees who are each paid $1,500 per month. An employee can only work a maximum of 100 hours per month because production normally takes place at night. They do receive $1,500 even if they do not work 100 hours, however. Part-time employees can be hired at a cost of $25 per hour. Dave’s Stove-Top Popcorn has forecasted that demand for the next six months will be as follows:
a. What is the total cost if Dave relies on part-time employees to meet additional demand?
b. What is the total cost if Dave hires one more full-time employee to meet additional demand?
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