Old Pueblo Engineering Contractors creates six- month rolling schedules, which are recomputed monthly. For competitive reasons (it

Question:

Old Pueblo Engineering Contractors creates six- month €œrolling€ schedules, which are recomputed monthly. For competitive reasons (it would need to divulge proprietary de-sign criteria, methods, and so on), Old Pueblo does not subcontract. Therefore, its only options to meet customer requirements are (1) work on regular time; (2) work on over-time, which is limited to 30 percent of regular time; (3) do customers€™ work early, which would cost an additional $ 5 per hour per month; and (4) perform customers€™ work late, which would cost an additional $ 10 per hour per month penalty, as provided by their contract. Old Pueblo has 25 engineers on its staff at an hourly rate of $ 30. The overtime rate is $ 45. Customers€™ hourly requirements for the six months from January to June are